THE MITEY FIELD NOTES
A clearer mortgage renewal comparison
Compare rate changes, payment changes, fees and remaining balances without mixing unlike mortgage scenarios.
The short answer
Use the same renewal balance, remaining amortization and comparison period, then compare payment, interest, fees and term-end balance. Record any change to principal or repayment period separately.
01 / A CLOSER LOOK
Start with the balance at the decision date.
An old original mortgage amount is not the same as the amount you expect to owe at renewal. Use a balance associated with the relevant date. If you are adding borrowing or financing costs, write that down; the refinance tool on this site assumes the same principal on both sides and fees paid separately in cash.
The current-rate reference isolates a rate change. It does not mean the expiring rate remains available. Compare actual written offers separately and make sure each rate is attached to the same term, payment frequency and amortization.
02 / A CLOSER LOOK
Read beyond the monthly payment.
A payment falls when the rate falls, but it can also fall when the repayment period is extended. Those are different changes. Principal repayment builds equity; interest and fees are borrowing costs. A useful comparison keeps both cost and remaining debt visible.
Our break-even tool asks when cumulative modeled interest savings first cover the entered up-front costs within your chosen period. It does not use the entire payment reduction as a saving, because part of a payment repays principal. It also does not include investment returns on cash-flow differences.
03 / A CLOSER LOOK
Complete the contract picture.
Obtain the penalty and switching costs that apply to the actual date and contract. Check prepayment privileges before treating a future lump sum as penalty-free. If you may move, repay early or change lenders, contract restrictions may matter alongside rate.
Save both scenarios with names that identify the assumptions. Export the ledger or print the result and write down the costs excluded from the calculation. Use the numbers as preparation for a qualified conversation, with eligibility and the final contract considered separately.
Sources and scope
FCAC: breaking your mortgage contract ↗
The source provides context for the subject. The worked models are MITEY implementations described on their own pages. This guide does not assess personal eligibility or recommend a product. Report a correction.