Mortgage Renewal Calculator

What Is a Mortgage Renewal?

A mortgage renewal happens when your current mortgage term expires and you need to renegotiate or sign a new agreement. In Canada, most mortgage terms are 5 years, meaning you'll renew multiple times over the life of your mortgage. It's one of the best opportunities to save money — if you don't just sign the first offer your lender sends you.

Why You Should Shop Around at Renewal

Your current lender will send you a renewal offer, but it's rarely their best rate. They're counting on the convenience factor — most homeowners simply sign and return without comparing options. By shopping around, you can:

• Save thousands: Even a 0.25% rate difference on a $400,000 mortgage saves over $3,000 over a 5-year term.
• Switch lenders penalty-free: At renewal, you can move to a new lender with no prepayment penalty.
• Negotiate better terms: A competing offer gives you leverage to get a better deal from your current lender.

When to Start Preparing

Don't wait until your lender sends the renewal letter. Start shopping at least 120 days before your renewal date. Many lenders offer rate holds that lock in today's rate for up to 120 days, protecting you if rates rise while giving you time to compare options.

What to Consider Beyond the Rate

While the interest rate is the biggest factor, also pay attention to:

• Prepayment privileges: Can you make lump-sum payments or increase your regular payments?
• Portability: Can you transfer your mortgage if you move?
• Penalty structure: How does the lender calculate early termination penalties?
• Term length: A shorter or longer term might better suit your plans.