https://calculating.ca/calculators/real-estate/mortgage-renewal-payment-calculator/
Real Estate / THE MITEY TOOLKIT
Mortgage Renewal Payment Change
See how a new rate changes your payment, interest cost and term-end mortgage balance.
Compare an illustrative renewal rate with keeping the current rate on the same remaining balance and amortization. Read the monthly cash-flow change alongside the interest and balance at the end of your selected term.
New monthly mortgage payment
$2,521.62
From your inputs. Explore the breakdown below.
- Payment change / monthi
- $404.53
- Interest in the new term
- $81,842.01
- Balance at term end
- $330,544.78
- Current-rate reference payment
- $2,117.09
- The current-rate case is a comparison baseline, not an offer to renew at that rate.
- Compare the term-end balance and interest as well as the monthly payment.
FOLLOW THE CASH FLOW
Annual cash-flow totals
Balance is the period-end value; growth and payments are totals for that year or final partial year. Download the ledger for every modeled period. Figures in CAD.
| Year | Closing balance | Interest / growth | Payment / withdrawal |
|---|---|---|---|
| Now | $400,000.00 | $0.00 | $0.00 |
| 1 | $387,317.00 | $17,576.45 | $30,259.45 |
| 2 | $374,056.85 | $16,999.29 | $30,259.45 |
| 3 | $360,193.27 | $16,395.87 | $30,259.45 |
| 4 | $345,698.82 | $15,764.99 | $30,259.45 |
| 5 | $330,544.78 | $15,105.41 | $30,259.45 |
CHANGE ONE VARIABLEWhat moves your answer?
Compare five values while keeping every other input the same. These are scenarios, not likelihoods or forecasts.
| Input value | Primary result | Use scenario |
|---|
BEHIND THE ANSWER
Formula and method
Monthly rate = (1 + annual nominal rate / 2)^(1/6) − 1; payment = balance × r / [1 − (1 + r)^(−months)].
Two monthly-payment amortization ledgers use Canadian fixed-rate semi-annual compounding. The remaining balance and amortization are identical; the rates differ. Term results stop at the selected term, not the full payoff date.
Context sources checked October 24, 2026
These sources explain the subject. The model follows the formula and assumptions shown here; a source link does not imply endorsement.
Worked examples
Renewing a $400,000 balance
- Balance at renewal:
- 400000
- Current annual fixed rate:
- 2.5
- Renewal rate assumption:
- 4.5
- Remaining amortization:
- 20
- New term:
- 5
New monthly mortgage payment: $2,521.62
A lower-rate scenario
- Balance at renewal:
- 250000
- Current annual fixed rate:
- 5
- Renewal rate assumption:
- 4
- Remaining amortization:
- 15
- New term:
- 3
New monthly mortgage payment: $1,845.10
Assumptions and limits
- Fixed rate and monthly payments within each scenario.
- Current balance is entered directly, including any financed premium already owed.
- No renewal, switching, appraisal or legal fees; no qualification decision.
This tool provides an educational estimate. Rules, rates and personal circumstances can change the answer. Review the assumptions before relying on a result. Report a correction.
Common mistakes to avoid
- Treating an illustrative rate as a lender quote or a return forecast.
- Comparing scenarios with different time periods or leaving out relevant fees.
Frequently asked questions
Why does my renewal payment change?
The model recalculates the payment from the remaining balance, remaining repayment period and new rate. A different amortization or added borrowing would change it again.
Is the current-rate result available from my lender?
No. It is a reference scenario so you can isolate the effect of the entered rate change. Confirm actual offers and switching costs with the lender.
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