Mortgage · Renewal
Switch or renew mortgage calculator.
At the end of a term you can renew with your lender or move the mortgage to another one. FCAC says switching can bring setup fees such as discharge, registration, transfer and assignment fees, plus an appraisal. This shows whether a lower rate beats those costs, and the month it does.
Switching pays when the interest saved over the new term is more than the costs you pay. With $500,000 over 25 years, a 5.00% renewal offer against a 4.50% switch rate saves about $11,995 of interest over 5 years; after $1,800 of costs that is $10,195 ahead, breaking even in month 9. The usual shortcut of dividing costs by the monthly payment saving says month 13, because a lower rate also pays down principal more slowly.
Inputs
Renew vs switch
Fill the form and press Calculate.
What the numbers compare
Both paths start from the same balance and the same remaining amortization; only the rate differs. The tool works out the payment at each rate, then the interest actually charged in each month of the new term. The saving is the difference, and the break-even month is the first month in which the interest saved so far covers your switching costs. Rates compound half-yearly, the usual fixed-rate convention under Interest Act s. 6; change nothing if your rates are fixed.
Worked example. $500,000 over 25 years, 5-year term. Renewal at 5.00% is $2,908.02 a month; switching at 4.50% is $2,767.36, so $140.66 less. Interest over the 5 years falls from $117,019.03 to $105,023.82, a saving of $11,995.21. Less $1,800 of costs that is $10,195.21. Dividing $1,800 by the $140.66 payment saving suggests month 13, but the interest saving is about $200 a month early on (the lower-rate loan pays down principal a little more slowly), so you are ahead by month 9.
What FCAC says about switching
FCAC says “You can move your mortgage to another lender if their conditions better suit your needs” and that you should expect “setup fees with the new lender, which may include discharge, registration, transfer and/or assignment fees from your current lender”, possibly an appraisal fee, and possibly a new mortgage loan insurance premium if your loan amount increases or you extend the amortization. Federally regulated lenders must send a renewal statement at least 21 days before the term ends. FCAC also lists transferring your mortgage to another lender before the end of your term as a prepayment-penalty trigger, so this comparison is for a term that is ending.
The OSFI straight-switch exemption
On 21 November 2024 OSFI stopped prescribing the minimum qualifying rate for uninsured “straight switches”. As OSFI describes it, the exemption covers an existing stand-alone uninsured mortgage moving between two federally regulated financial institutions, where the remaining amortization and loan amount do not increase (unpaid principal may rise by up to $3,000 for transaction costs) and no equity is taken out. The new lender must still underwrite the switch under Guideline B-20. The four ticks above are those conditions; a provincially regulated lender is outside them.
Sources, read 15 October 2026: FCAC — Renewing your mortgage (15 October 2025); FCAC — Mortgage discharge (25 September 2025); OSFI — straight-switch exemption; FCAC — Mortgage fees: Prepayment penalties.
Frequently asked questions
Is it worth switching lenders at renewal in Canada?
It is when the interest you save over the term is more than the switching costs. Enter your renewal offer, the other lender’s rate and the costs; the page shows the net saving and the month you break even.
Do I pay a prepayment penalty if I switch at renewal?
FCAC lists transferring your mortgage before the end of your term as a penalty trigger and says you can prepay without penalty at the end of the term. Switching when the term ends therefore generally avoids one. Confirm in your contract.
What does it cost to switch mortgage lenders?
FCAC says expect setup fees that may include discharge, registration, transfer and assignment fees, and possibly an appraisal fee and other administration fees. Where a province does not regulate the discharge fee it typically ranges from no charge up to $400. Ask whether the new lender covers some or all of it.
Do I have to pass the stress test to switch?
OSFI stopped prescribing the minimum qualifying rate for uninsured straight switches between federally regulated lenders on 21 November 2024, if the amortization and loan amount do not increase and no equity is taken out. Other switches may still need to qualify. The new lender decides.
Why is the break-even month earlier than costs divided by the payment saving?
The shortcut only counts the lower payment. A lower rate also means less of each payment is interest, which is a bigger saving than the payment alone shows, so this page counts interest actually saved.
How long before renewal should I shop?
FCAC says to start comparing options a few months before your term ends rather than after the renewal letter arrives.
Estimate only — confirm with your lender
This tool illustrates the arithmetic with rates and costs you type. It does not know either lender’s terms, fees, insurance requirements or underwriting, and the OSFI check is a reading of the published conditions, not a decision. Confirm every figure with the lenders before you sign.