Mortgage Renewal Payment Calculator
Find out what your payment becomes when your mortgage renews at a new rate, and how much more (or less) it costs each month and year.
How the renewal payment is worked out
At renewal, your lender recalculates the payment so the balance still owing is repaid over the amortization that is left, at the new rate. This calculator does the same: it takes your balance, the remaining amortization and the renewal rate, applies Canadian semi-annual compounding for fixed rates (or monthly compounding for variable rates), and solves for the level payment.
Payment = B × i ÷ (1 − (1 + i)−n), where i = (1 + rate ÷ 2)2 ÷ payments per year − 1
B is the balance at renewal and n is the number of payments left in the amortization. Accelerated bi-weekly and weekly payments are the monthly payment divided by 2 or 4, which adds the equivalent of one extra monthly payment a year.
Worked example
A $500,000 mortgage taken in 2020 at 2.5% over 25 years has a monthly payment of about $2,239.83. After five years the balance is about $423,190. Renewing that balance at 4% over the remaining 20 years gives a payment of about $2,557.11, roughly $317 more per month. TD Economics uses a similar example and estimates the increase at about $320 a month.
| $423,190 balance, 20 years left | Monthly payment | Change |
|---|---|---|
| Old rate 2.5% (same 20 years) | $2,239.83* | — |
| Renewal at 4.0% | $2,557.11 | +$317.28 |
*On the original schedule, the balance after five years at 2.5% is exactly what keeps the old payment on track for the remaining 20 years, so the two match.
Why so many renewals cost more in 2025–2026
The Bank of Canada has estimated that about 60% of outstanding mortgages renew by the end of 2026, and that about 60% of those borrowers (around 40% of all mortgages) face a higher rate than they had before. Many locked in five-year fixed rates near pandemic lows. Source: Bank of Canada via Advisor.ca
Ways to soften a payment increase
- Negotiate and compare. The first renewal offer is rarely the lowest. Get quotes from other lenders and a broker about four months before maturity.
- Switch lenders if it pays. Since November 21, 2024, borrowers at federally regulated lenders who switch at renewal without changing the amount or amortization no longer need to pass the stress test.
- Make a lump-sum payment at maturity. A smaller balance means a smaller payment. See the prepayment calculator.
- Extend the amortization, carefully. It lowers the payment but adds interest. Compare with the amortization extension calculator.
- Pick a shorter or longer term. Shorter terms can carry different rates; the table above the guide shows how each 0.5% changes your payment.
Frequently asked questions
Where do I find my balance and remaining amortization?
Your renewal statement lists the balance and usually the remaining amortization. Federally regulated lenders must send it at least 21 days before your term ends. Your online banking mortgage page normally shows both as well.
Why doesn’t my estimated current payment match my real one?
Your real payment was set when the mortgage started, and prepayments, payment changes or a variable rate can move the schedule. Enter your actual payment in the optional box for an exact comparison.
Is the result a quote?
No. It is an estimate for planning. Lenders round differently and may include property tax or insurance in the payment. Read the mortgage renewal guide for the full checklist.
Reviewed October 2026 · How we build our calculators · Report an issue