Compare a renewal offer with a switch
See an illustrative payment and the interest over the term for staying, and for switching, from numbers you type. This is not advice to stay or to leave.
Any rate or payment mentioned is illustrative and on approved credit (OAC). It is not a quote, a commitment, or a current offer.
Enter a balance, both rates, a term, an amortization, and the costs. Use 0 for costs if you are not adding any. The boxes start empty.
This sketch compares staying with a renewal offer and switching, using only the numbers you type. The balance is the amount still owing. The renewal rate is the rate in the current lender's offer. The switch rate is the rate in the other offer. Neither box starts with a figure, because this office is not publishing a rate on the calculator.
The term is how many years of interest to add up. The amortization is how the payment is calculated. A five-year term on a mortgage that still amortizes over twenty years is normal. If the term is entered as the amortization, the payment is the payment of a loan that finishes at the end of the term, which is usually higher than a real mortgage payment. The page asks for both so that mix-up is visible.
Penalty, legal, and appraisal costs are one number. Type them as a single dollar amount, or type 0 if you are only looking at interest. The switch side adds that amount once. It is not spread into the rate. A real penalty can be three months of interest or an interest-rate differential, and the lender's formula controls it. This page does not look up that formula.
The payment difference is the switch payment minus the renewal payment. A negative number means the switch payment is lower on these inputs. Total interest is the interest over the term only, not the interest left after the term. The cost-adjusted figure is switch interest, plus the costs you typed, minus renewal interest. A lower number is not a recommendation to switch.
Prepayment privileges, the penalty if you leave again, portable features, and whether the new loan is insured are not in the arithmetic. Two offers with the same rate can still be different contracts. Illustrative example means the result is a sketch of the inputs, on approved credit, and not an offer from MKG Mortgages.
GTA renewals often arrive as a letter with a deadline. The letter is the offer to compare, not a forecast of the Bank of Canada target. If income, credit, or the use of the property has changed, a switch can be a new application rather than a signature. The renewal page describes that file. The rates outlook lists announcement dates and other institutions' published forecasts, which are not rates from this office.