Renewal comparison

Why renewal is the biggest one-time savings opportunity in your mortgage

60-70% of Canadians accept the rate their existing lender offers in the renewal letter. Lenders know this — and price renewal offers 25-75 bps above their best available rate. Just comparing 2-3 alternative quotes typically saves $5,000-$25,000 over the term.

How to actually use this calculator

1. Pull your renewal letter — note the offered rate
2. Get 2-3 broker quotes for your specific balance + amortization
3. Plug the best alternative rate in the "Best market rate" input
4. Add typical switching costs ($800 captures discharge + most legal scenarios)
5. See the net savings — usually well above the switching costs for any rate spread above 25 bps

What this calc captures vs misses

Captures: rate-driven savings over the term, switching costs, monthly payment delta.

Misses: stress-test re-qualification requirements (switching requires it; same-lender renewal doesn't), feature differences between lenders (prepayment privileges, port-ability, break penalty mechanics), bundling benefits from your existing lender (chequing + investment relationship discounts).

The stress-test wrinkle

If you switch lenders at renewal, the new lender must qualify you under the federal stress test (higher of contract + 2% or 5.25%). Same-lender renewals skip this entirely. Borderline files where income dropped or debt grew since the original mortgage may fail the re-qualification — locking them with their existing lender by default.

How to negotiate without switching

Often the best outcome is to get a competitive quote elsewhere, then call your existing lender's mortgage retention team (not the renewal letter contact). Most will match 75-90% of the way to keep your business — saves the switching costs while still capturing meaningful rate savings.

Related

• Full Canadian switching playbook
• What to do 90 days before renewal
• Break penalty (mid-term)
• Mortgage payment calculator