Bank of Canada Maintains the Policy Rate at 2.25%
Mortgage Renewal Calculator
When it comes to managing your finances, it can be beneficial to have a tool that helps you calculate your monthly mortgage payments. If you’re a homeowner coming up for renewal or want to run scenarios, check out nesto’s mortgage renewal calculator. nesto’s calculator lets you explore options for paying off your mortgage faster, helping you save money.
When it comes time to renew, a mortgage calculator can help you understand your payments. Knowing your mortgage payment can make budgeting and planning for the future much easier and less stressful.
Key Takeaways
- A mortgage renewal calculator can help homeowners understand their monthly payments and plan a budget.
- Homeowners should start planning their renewal at least four months before the renewal date and shop around for the best rates and terms.
- nesto’s mortgage renewal calculator can help homeowners compare their options to maximize their savings.
Best Mortgage Rates
How to Use a Mortgage Calculator
Using nesto’s mortgage renewal calculator makes it easy to estimate and run scenarios to calculate your mortgage payments, preparing you for your next mortgage term.
Use the calculator to test scenarios by changing the amortization and payment frequency. Then, you can calculate your mortgage renewal payments and get an overview of the total interest you will pay over the term.
To run a scenario, enter the following information:
Current Property Value: Enter the assessed value of your home. If you aren’t sure about the current assessed value of your home, you can use CREA’s National Price Map to find the average property values in your area to run a base scenario. Note: If your property is less than $1 million, you could qualify for a lower mortgage rate.
Mortgage Balance: Enter the balance you have remaining on your mortgage. Note: The lower your mortgage balance compared to your property value, the better your rate.
Province: Select the province from the dropdown where your home is located.
Remaining Amortization: Enter the number of years remaining on your mortgage. You can find this by clicking on your mortgage in your online banking or looking at the most recent statement. Note: If your mortgage has over-amortized (also known as negative amortization), you must return to your remaining amortization.
Payment Frequency: Use the dropdown to select how often you want to make mortgage payments. An accelerated payment frequency can reduce your mortgage’s time and interest.
Mortgage Rate: Use the dropdown to choose a pre-selected rate based on the term length, or if you already have a new rate, enter it in the custom rate field. Note: If your mortgage was originally default-insured, you’ll qualify for the lowest rates.
Payment Summary: The output is calculated from the details you entered. This will provide the mortgage payment you should expect based on the details you entered.
Helpful Calculator Tips – Use the Payment Frequency dropdown to run scenarios and see how much interest and time you can save by switching to a more frequent payment schedule.
Today’s Best Mortgage Rates as of July 31, 2026
How to Calculate Your Mortgage Renewal
Your mortgage renewal is the perfect opportunity to rethink your strategy and shop for better rates, terms, and conditions. Whether your renewal is a few months or years away, it’s never too early to consider your options, especially if you will save money in the long run.
All you need to know is your home’s current property value, the balance remaining on your mortgage, and your remaining amortization, which is the length of time remaining on your mortgage.
For example, let’s say you have a home with a current assessed value of $200,000. You have $150,000 remaining on the mortgage, and your amortization will be 25 years at renewal, the same numbers this page’s calculator uses by default.
To calculate mortgage renewal payments, you can use nesto’s mortgage renewal calculator to run some different scenarios. Using nesto’s current 5-year insurable fixed rate, here’s how your payment and total interest change across monthly, regular bi-weekly, and accelerated bi-weekly schedules.
A Sample Renewal Scenario
Scenario: $150,000 mortgage balance, 25-year remaining amortization, nesto’s current 5-year insurable fixed rate of 4.29%.
- Monthly payment: …
- Bi-weekly payment (regular): …
- Accelerated bi-weekly payment: …
Switching from monthly or regular bi-weekly to accelerated bi-weekly increases your principal payment by … per bi-weekly payment. Over the life of the mortgage, that saves you … and … in interest-carrying costs.
Between monthly and bi-weekly payments, there are no monetary savings; however, the benefit of bi-weekly over monthly payments is that bi-weekly amounts allow you to break up payments, making your cash flow more manageable.
This example uses nesto’s current 5-year insurable fixed rate. At renewal, whether a mortgage is insured, insurable, or uninsured isn’t just about your loan-to-value ratio. Insured mortgages (under 20% down) are capped at $1.5 million in property value; insurable mortgages, available to lenders on mortgages at 80% LTV or less, are capped at a lower $1 million. Since this example’s property value is under $1 million, it qualifies for insurable pricing, which is typically the best rate available for a renewal in this range.
What Is a Mortgage Renewal?
When you sign a mortgage agreement, it typically lasts for a set period of time, with the most popular mortgage term in Canada being 5 years. Once that term ends, you can fully pay off the remaining balance or renew your mortgage agreement. When you renew your mortgage, you have the opportunity to negotiate a new interest rate, change payment terms, and make other adjustments to your terms and conditions to suit your current financial situation. Renewal is also the best time to compare rates to save even more by switching or transferring to a new lender.
How to Use the Mortgage Renewal Calculator to Your Advantage
Interest rates can shift with each Bank of Canada rate announcement, so saving money is a priority to keep up with your finances. nesto’s mortgage renewal calculator can help you compare your savings by adjusting interest rates, amortization, and payment frequencies. Let nesto’s mortgage experts help you find the best rates for your renewal today.
Mortgage Renewal vs Refinance
A mortgage renewal means that when your current mortgage term ends, you renegotiate with your lender for a new term and interest rate. Still, the principal amount of your mortgage should remain the same. A renewal allows you to explore new lenders and what they offer for interest rates and terms that you could then use to negotiate more favourable terms with your current lender – or switch lenders altogether.
Conversely, refinancing involves obtaining a new mortgage with different terms and conditions and a new interest rate. Refinances are often useful to lower your mortgage payments or gain access to your home’s equity. When you refinance, you’re taking out a new loan and paying out your existing one. Refinancing is a great way to access equity in your home to consolidate high-interest debt, finance renovations, or buy an investment property.
Important: Once you refinance, you will lose your mortgage default insurance.
How to Renew Your Mortgage
Renewing your mortgage starts by determining your needs. Take this opportunity to look at your budget and see what has changed since the beginning of your mortgage term. When considering what you want from a new mortgage term, consider how frequently you want to make payments. If you are financially able, make a lump sum prepayment or increase your payments to pay off your mortgage sooner and save thousands in interest. Explore current interest rates and see who offers the best rates and conditions, like other lenders’ prepayment options.
Now is also the time to assess your plans. Do you plan to move during the next term? If you see yourself selling your current home in the next 5 years, you may consider going with a shorter mortgage term or looking for lenders that offer assumable or portable mortgage options. You should aim to plan at least 4 months before your renewal date. Most lenders will allow you to renew to secure your mortgage with them for another term at least 90-120 days before your maturity date without prepayment penalties.
Finally, lock in your rate 30 days before renewing. Lenders are required to send your renewal statement at least 21 business days before your current term ends. You should receive an offer from your current lender with their reserved rates around the 30-day mark before your current term ends, so this is a good time to lock in your renewal mortgage rate or use what was offered to compare against other lenders.
Tips on Your Mortgage Renewal
Don’t forget – virtual lenders like nesto are only interested in helping you with your mortgage. They will offer you the best rate upfront without negotiating, asking you to move your banking or investments to them or persuading you to sign up for insurance you may not need.
We’re curious…
Are you a first-time buyer?
Frequently Asked Questions (FAQ) About Your Mortgage Renewal
Can I renew my mortgage early?
Yes, most lenders will allow you to renew early, 90-120 days before your term ends. Check with your lender to see how early you can renew your mortgage.
Do I keep my mortgage insurance at renewal?
As long as you renew and keep your remaining amortization and mortgage balance the same, it won’t affect your mortgage default insurance at renewal.
Is it better to renew or refinance my mortgage?
Deciding whether it’s better to renew or refinance will depend on your situation. A renewal may be better if you are at the end of your term and want to stick with the same mortgage balance and remaining amortization. A refinance may be a better option if you want to access equity or lower your mortgage payments by extending your amortization.
Can I negotiate my mortgage renewal rate?
Yes, you can negotiate your renewal rate. Your renewal offer isn’t the only rate available to you; lenders expect some negotiation, and the leverage works in your favour more than most homeowners realize. A written offer from another lender is the strongest card you can bring to the table, since your current lender would rather match a competitive rate than lose your mortgage outright.
Lenders are required to send your renewal statement at least 21 business days before your term ends, and most will hold a rate for about 30 days before that. Shopping around during that window, and coming back to your current lender with what you found, is usually more effective than just asking for a better rate with nothing to compare it to.
Should I switch mortgage lenders at renewal?
Switching can get you a better rate or terms if your current lender’s renewal offer isn’t competitive, and unlike a mid-term transfer, switching lenders at renewal doesn’t involve breaking your mortgage or paying a prepayment penalty. Most new lenders will also cover your switch and discharge fees to win your business.
The tradeoff is paperwork, and you’ll need to requalify with the new lender using your current income and debts, the same way you did on your original application. If your current lender’s rate is already competitive and your mortgage is otherwise straightforward, staying put and simply negotiating may cost you less time for a similar result.
What is a mortgage penalty for breaking my mortgage early?
Breaking your mortgage before your term ends usually comes with a prepayment penalty, and how it’s calculated depends on your mortgage type. For a variable or adjustable mortgage, the penalty is typically 3 months’ interest on your remaining balance at payout. For a fixed mortgage, the penalty is the greater of 3 months’ interest or the interest rate differential (IRD), the difference between your contract rate and the rate your lender could charge on a new mortgage for your remaining term, and the IRD is usually the larger, more expensive of the two. Your lender’s IRD penalty could be significantly more if they used a higher posted rate which was discounted at the time you signed up for your current mortgage.
The IRD calculation varies by lender, so the same mortgage can carry a very different penalty depending on where it’s held. Before breaking a fixed-rate mortgage early, ask your lender for the exact penalty amount in writing, and compare it against what you’d actually save by switching. Sometimes waiting for renewal costs less than breaking early, even with a better rate on the table.
What is the option to blend and extend your mortgage?
A blend and extend lets you combine your current mortgage rate with a new rate for a longer term, without paying the full prepayment penalty you’d owe for breaking your mortgage outright. Your lender blends your existing rate and the new rate together, weighted by how much time is left on each portion, into one new rate for the extended term.
A blend and extend can make sense if rates have dropped and you want to lock in savings now without waiting for your renewal date, but the blended rate is usually higher than the best rate you could get by breaking your mortgage and paying the penalty upfront. It’s worth asking your lender to run both numbers before deciding, and it’s only offered by your current lender, since it’s not something a new lender can do with someone else’s mortgage.
Should I lock in my mortgage rate now, or wait?
Whether to lock in now or wait depends on which way you think rates are headed, and how much risk you’re comfortable carrying while you decide. Locking in early protects you from a rate increase before your renewal date, but if rates drop afterward, most lenders won’t let you switch to the lower rate once you’ve committed.
Since your lender holds your renewal rate for about 30 days before your term ends, you have a short window to watch the market before deciding, rather than needing to commit the moment your renewal statement arrives. If you expect rates to drop soon, it may be worth waiting closer to that 30-day mark instead of locking in as soon as the offer arrives.
Why Choose nesto
At nesto, our commission-free mortgage experts, certified in multiple provinces, provide exceptional advice and service that exceeds industry standards. Our mortgage experts are salaried employees who provide impartial guidance on mortgage options tailored to your needs and are evaluated based on client satisfaction and the quality of their advice. nesto aims to transform the mortgage industry by providing honest advice and competitive rates through a 100% digital, transparent, and seamless process.
nesto is on a mission to offer a positive, empowering and transparent property financing experience – simplified from start to finish.
Contact our licensed and knowledgeable mortgage experts to find your best mortgage rate in Canada.
Browse Calculators by Location:
- Mortgage Calculator Alberta
- Mortgage Calculator Manitoba
- Mortgage Calculator Newfoundland
- Mortgage Calculator Nova Scotia
- Mortgage Calculator Quebec