Mortgage Renewal Calculator
Estimate your new monthly payment when your term ends — enter the balance still owing, the new rate, and the amortization remaining.
🇨🇦 CanadaHow this mortgage renewal calculator works
Canadian mortgages are structured around a short term — usually 1 to 5 years — inside a much longer amortization of 25 or 30 years. When your term ends, the balance still owing comes due and you renew: you sign a new term at the current market rate for the balance that remains. This calculator estimates the new monthly payment at that moment.
We take your remaining balance, apply your new interest rate as a monthly rate (annual rate ÷ 12), and amortize it over your remaining amortization in months (years × 12) using the standard formula. The key distinction is that your payment is recalculated on the amortization left — not the original 25 or 30 years — so as you renew later in the loan, the same balance is spread over fewer years.
Renewal is the point where rate changes hit hardest. If rates have risen since you last signed, your new payment can jump even though your balance has fallen, because the higher rate outweighs the smaller principal. The total interest remaining figure shows the interest you will still pay over the remaining amortization at the new rate, assuming the payment holds steady.
Use this as a planning tool. Note that Canadian fixed mortgages are compounded semi-annually by convention; for simplicity and consistency this calculator uses monthly compounding (rate ÷ 12), which is close enough for planning. Renewal is also a good time to shop lenders, shorten your amortization, or change payment frequency. When you are ready, speak with a licensed Canadian mortgage professional.
Mortgage renewal questions
In Canada, your mortgage term (commonly 1 to 5 years) is shorter than your full amortization period (often 25 or 30 years). When a term ends, the remaining balance comes due and you renew — signing a new term at the current interest rate for the balance still owing. This calculator estimates your new payment at renewal.
The amortization is the total time to pay off the entire mortgage, while the term is the length of your current contract and rate. You typically renew several times over the life of the loan as each term ends. Only the amortization remaining at renewal — not the original amortization — drives your new payment.
We use the standard amortization formula: payment = balance · r / (1 − (1 + r)⁻ⁿ), where r is the monthly rate (annual rate ÷ 12) and n is the remaining amortization in months (years × 12). The result is the new monthly payment that pays off your remaining balance over the remaining amortization.
Yes. Renewal is a natural time to shorten your amortization, switch lenders for a better rate, or adjust your payment frequency. Switching lenders may require requalifying. It pays to compare offers well before your term expires rather than auto-renewing with your current lender.
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