Renewal calculator
Compare the payment on the mortgage you have with a payment at a rate and amortization you type in. The lender's renewal offer is the document that governs. This page does not look up a rate.
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, and both amortizations. The boxes start empty.
A mortgage renewal is the day the current term ends. The balance does not disappear, and the house is not automatically paid off. The lender that holds the mortgage sends a renewal agreement with a rate, a new term, and a payment. That letter is one offer. It is not the only way the next term can be written, and it is not a rate MKG is quoting on this page.
This calculator asks you to type the balance, the rate on the mortgage you have now, the years left if you kept the current amortization, the rate on the offer you are looking at, and the amortization you want to test. Every one of those boxes starts empty. Nothing here is a posted rate, a special, or a prediction of what a lender will approve next month.
The payment it shows is ordinary mortgage math. It spreads the balance you typed over the years you typed, at the annual rate you typed, compounded monthly the way Canadian residential mortgages usually are. If you change the amortization, the payment changes even when the rate stays the same. A shorter amortization costs more each month and pays the balance down faster. A longer one does the opposite. The calculator shows the difference. It does not tell you which one a lender will allow.
People use a renewal date badly when they sign the letter because the payment looks familiar. The current lender already has the mortgage, so the paperwork feels finished. A switch to another lender at maturity is often available when the balance, the property, and the income still fit a program, and when you are not taking extra money out. That is different from a refinance, which replaces the mortgage before the term ends or changes the amount borrowed. A refinance can trigger a penalty. A renewal on the maturity date generally should not.
Read the penalty line before you do anything early. If months are left on the term, the contract may charge three months of interest or an interest-rate differential. The differential uses the lender's own comparison rate, not a rate you found on a website. The prepayment penalty page on this site is a sketch of those two ideas. The renewal calculator assumes you are comparing payments, not estimating a penalty. If you are breaking the term, get the payout statement from the lender before you compare anything.
The rate on the renewal letter and the rate you type as the new rate are both numbers you supply. MKG does not fill them in, and this page will not tell you that one of them is the best rate available. Client reviews elsewhere on the site sometimes use the words best rate or great rate. Those are the client's words about their own file. They are not an offer, and they are not a number this calculator will produce on its own.
Amortization is the other lever, and it is easy to ignore because the renewal letter often keeps the remaining amortization. If you have 20 years left and the letter offers a five-year term at a payment based on those 20 years, that payment is not the only legal shape of the loan. Some lenders will reset the amortization. Stretching it lowers the payment and increases the interest you will pay if you keep the mortgage for the whole period. Shortening it does the reverse. Type both versions if you want to see the gap. The result is an illustration.
A renewal is also a moment to check whether the mortgage still matches the house. A borrower who wants to take equity out, roll in other debts, or add a HELOC is no longer looking at a plain renewal. That file is a refinance, and it needs the penalty, the appraisal, and the income looked at together. The debt consolidation page describes when rolling balances into the mortgage helps and when it only stretches an expensive debt over more years. Do not force that question into this calculator. It does not know your other debts.
Income still matters if you are moving the mortgage. The current lender's renewal can be lighter on documents because they already have the loan. A new lender usually asks for income again, and for the property if anything has changed. Self-employed borrowers should expect the notice of assessment, the T1 General, and the business statements. A stated-income program is not a file with no records. If the renewal is staying with the same lender and the letter does not ask for new documents, this calculator still only does payment math.
Portability is a different contract feature. Some mortgages can move to the next house and keep the rate for the time left in the term. That is not a renewal, and this page does not calculate a port. If you are selling and buying, bring the current commitment and the new agreement. The purchase file and the sale file have to be dated against each other, including any bridge for the days in between.
Fixed and variable are choices on the new term, not answers this page can give you. A fixed payment stays on the rate you sign. A variable payment can change when the lender's prime changes. Prime is set by lenders with reference to the Bank of Canada, and it is not a number MKG publishes here. If you want to see a variable sketch, type the rate you were offered today and accept that the calculator will not move it later. It is a snapshot of the inputs.
How to use the boxes. Put the balance from the mortgage statement, not a guess from memory. Put the rate from that same statement in the current-rate box. Put the remaining amortization in years, or a decimal if you are part-way through a year. Then put the rate from the renewal letter, or from another offer you have in writing, in the new-rate box. Put the amortization you want to test. The page shows the current payment, the new payment, and the monthly difference. A negative difference means the new payment is lower. Lower is not automatically better if the amortization grew.
What the page will not do. It will not store a rate for you. It will not say you are approved. It will not apply a stress test, a debt-service ratio, or an insurer rule. Those belong on the required-income calculator and in the actual file. It will not add a penalty, a discharge fee, or a legal bill. It will not know if the offer you typed is still open. Lenders withdraw unpublished offers. The paper in your hand is the offer that counts.
Bring the renewal letter to the North York office, or send it with the mortgage statement, before you sign. The first conversation is free. It is a review of that letter against the balance and the term, not a promise that another lender will fund the switch. Any rate talked about in that meeting is illustrative and on approved credit. The figure this page shows is the same kind of figure: arithmetic on numbers you chose to type.