Free Mortgage Renewal Calculator Ontario (No Email Required)
Your bank's first renewal offer is almost never their best rate. This calculator compares your bank's rate against today's live market rates from Ratehub.ca, so you know in 90 seconds what shopping your renewal is actually worth before you sign. Free to use, no email or credit check required to see results.
Where is your home located?
We'll tailor the estimate to your province. No email required.
Your mortgage at renewal
Check your last mortgage statement or renewal letter for these numbers.
Choose your renewal product
Select the rate type and term that works for you. Rates shown are today's best available market rates from Ratehub.ca.
Calculating your renewal estimate…
Your estimated monthly payment
Jenny will email you this comparison plus an optional 15-minute call invite to walk through your specific renewal. No spam, no obligation.
Calculator Disclaimer: Results are estimates for illustrative purposes only. They are not financial advice, a mortgage offer, or a commitment to lend. Actual rates, payments, and savings will vary based on your lender, credit profile, property type, and market conditions at the time of application. Live rates are sourced from Ratehub.ca and may differ from rates available to your specific file. Speak with a licensed mortgage agent before making any financial decisions. Calculator built by Jenny Tate, Mortgage Agent Level 1, FSRA #M22002086.
Next step
Got your numbers? Here is what to do next.
- check_circleJenny pulls live rates from 50+ lenders against your specific file, not a generic quote, your actual scenario
- check_circleOn a $600K balance, a 0.20% rate improvement saves $7,200 over 5 years. A 15-minute call costs nothing to find out
- check_circleNo credit check at this stage, no obligation, no hard sell
Should You Refinance or Renew?
Most Ontario homeowners conflate these two terms, but they trigger very different processes, paperwork, and costs. A renewal happens automatically at the end of your term: same balance, same amortization, usually the same lender, just at a new rate. A refinance is a new mortgage that pays off the old one. It can change the balance, the amortization, and the lender, and it almost always involves prepayment penalties if done mid-term.
The decision usually comes down to one question: do you need to pull money out, or change the structure? If yes, refinance. If no, renew. This table breaks it down by situation.
| Situation | Renewal | Refinance |
|---|---|---|
| Want a new term, no balance change | Best option | Not needed |
| Want to pull out equity (renovation, debt consolidation, second property) | Cannot | Required |
| Locked into term, want to break early | Cannot | Yes, with penalty |
| Want to lengthen amortization to lower monthly payment | Limited | Yes, easier |
| Want to switch lenders for a better rate | Yes, often at no cost | Yes, with closing costs |
| Want to add or remove a borrower | Limited | Required |
For a full walkthrough of the trade-offs, see our Refinance vs Renewal guide and the Ontario refinancing break-even math post.
How to Use This Renewal Calculator
Most Ontario homeowners see two numbers when their bank sends a renewal letter: the new rate and the new monthly payment. That is not enough information. This calculator lets you test the bank's rate, a competing market rate, and the difference between fixed and variable against your actual balance, so you know exactly what shopping your renewal is worth before you sign. It also handles refinance scenarios if you need to pull equity or consolidate debt.
1. Mortgage Balance
Enter the principal still owing. For a renewal, this is the balance at your renewal date. For a refinance, this is the current balance plus any new money you want to add (for renovation, debt consolidation, or equity take-out). The lender will require an updated appraisal to confirm your home value supports the new balance.
2. Interest Rate
Enter the rate you have been offered or quoted. Run the calculator twice: once at the bank's first offer, and once at a rate roughly 0.20% to 0.40% lower. The difference is what shopping the renewal or refinance is worth. Refinance rates can be slightly higher than purchase rates at the same lender.
3. Term
The term is how long the rate is locked in. Most Canadians choose a five-year fixed term, but shorter terms (1-3 years) can make sense if you expect rates to fall. Three-year fixed has been popular in 2025-2026 for that reason. For a refinance, your new term resets from the closing date.
4. Amortization
The amortization is how long until the mortgage is fully paid off, typically 20 to 30 years. At renewal your amortization just keeps counting down. At refinance you can reset it (up to 30 years for an uninsured refinance), which lowers your monthly payment but increases total interest. The calculator lets you compare both.
How Mortgage Renewal Math Actually Works
Canadian mortgage payments are calculated using semi-annual compounding (compared with monthly compounding used in the United States). That means your effective interest rate is slightly lower than a simple monthly calculation would suggest, but the math is more complex. The calculator above handles this automatically for both renewal and refinance scenarios.
Here is what most renewal letters do not tell you: the first rate your lender offers is almost never their best rate. Banks know that roughly 70% of homeowners simply sign the renewal letter without comparing options. They build a margin into the posted renewal rate specifically because they expect that behaviour.
An active shopper, through a mortgage agent or by calling competing lenders, typically achieves a rate 0.20% to 0.60% lower than the lender's first offer. On a $700,000 balance, that works out to roughly $1,400 to $4,200 in interest savings in the first year alone, with further compounding over the full five-year term.
A refinance adds two more moving pieces to the math: the prepayment penalty (if breaking the existing term) and the new closing costs. The next section breaks those numbers down for Ontario specifically.
What It Costs to Refinance a Mortgage in Ontario
A refinance has five typical line items in Ontario. None of them are surprises if you ask in advance, but most homeowners only see the prepayment penalty number on the lender's payout statement and miss the closing costs entirely.
- Prepayment penalty: the largest single number, ranging from $0 (at renewal) to roughly $5,000 to $18,000 mid-term on a Big-5 fixed mortgage with a mid-size balance. Variable-rate penalties are usually three months of interest, often $2,000 to $6,000. Per FCAC guidance, lenders must disclose the exact payout figure on request.
- Appraisal: $300 to $500, sometimes covered by the new lender as a promotional incentive.
- Legal fees: $800 to $1,500 for the discharge of the old mortgage and registration of the new one. Some lenders offer a legal-fee cash-back on switches.
- Title insurance: $300 to $500 (required if the new lender insists on it, which most do for switches).
- Discharge fee from the old lender: $250 to $400 if switching lenders. No discharge fee if you refinance with the same lender.
Total typical refinance cost in Ontario: $1,500 to $3,000 if you wait for renewal, $6,500 to $20,000+ mid-term. The break-even question is whether the rate improvement (or the avoided interest on consolidated debt) recovers those costs within a reasonable window, usually 18 to 36 months.
For a full break-even worked example, read our Ontario refinancing break-even guide, or model your specific numbers in the calculator above.
What Counts as a Good Renewal or Refinance Rate in Ontario Right Now
As of early 2026, here is roughly what Ontario homeowners with strong credit and a standard insured or low-LTV uninsured mortgage can expect to see when they actively shop:
- 5-year fixed: typically in the high 4s to low 5s, depending on lender and down payment status.
- 5-year variable: often slightly higher than 5-year fixed at the start of the term, priced as prime minus a small discount.
- 3-year fixed: a popular middle ground in 2025-2026 for borrowers who expect Bank of Canada rate cuts but want some payment certainty.
- Refinance rates: sometimes 0.10% to 0.20% higher than purchase or renewal rates at the same lender, especially for higher-LTV refinances or cash-out scenarios.
If your bank's renewal offer or refinance quote is more than 0.20% above the rates you see on independent comparison sites, you are almost certainly being underbid. The fix is simple: get one written competing offer (a mortgage agent can pull this from 50+ lenders for free) and use it as leverage, or switch.
The full strategy is in our 2026 variable vs fixed guide and the Ontario mortgage renewal hub.
Refinance vs HELOC vs Second Mortgage
If you are pulling equity to cover a renovation, consolidate debt, fund a second property, or bridge a cash crunch, you have three main tools. They look similar on the surface but the cost profile, qualifying rules, and best-fit situations are very different. This table is a quick decision filter; the linked guides go deeper on each.
| Feature | Refinance | HELOC | Second mortgage |
|---|---|---|---|
| Best for | One-time large amount | Ongoing flexible access | Bad credit, urgent, short-term |
| Setup cost | $1,500 to $20,000+ (incl. penalty) | $0 to $300 | $1,000 to $3,000+ |
| Interest rate (illustrative) | Lowest, mortgage rate | Prime + 0.5% to 1% | Higher, often 6% to 12%+ |
| Equity limit | Up to 80% LTV (uninsured) | Up to 65% LTV (FCAC) | Up to 80% LTV combined |
| Approval timeline | 30 to 45 days | 14 to 30 days | 7 to 21 days |
For the full comparison with Ontario-specific numbers, see HELOC vs Refinance in Toronto and Second Mortgage Toronto vs HELOC vs Refinance.
Collateral Charge Mortgages and Why Switching Is Hard
This is the single most expensive surprise homeowners discover at refinance or renewal: their existing mortgage was registered as a collateral charge rather than a standard charge, and switching lenders now costs $800 to $1,500 in extra legal fees that the new lender will not always cover.
TD, Tangerine, and several credit unions register mortgages as collateral charges by default. The collateral charge is typically registered for up to 125% of the home value, not just the actual mortgage balance, so the lender can add a HELOC or top-up loan against the same charge later without re-registering. Convenient for the lender, expensive for the homeowner who wants to switch.
A standard charge can be transferred to a new lender at little or no cost using a "switch" or "transfer" program (many lenders cover the legal fees). A collateral charge cannot be transferred. To switch lenders you must discharge the existing charge and register a brand new one, which is a full refinance from a paperwork standpoint, even if you are not changing the balance.
Before signing any mortgage commitment, ask the lender explicitly whether they register the mortgage as a standard charge or a collateral charge, and get the answer in writing. It will save you four figures in 5 years.
Frequently Asked Questions
What is the difference between a mortgage renewal and a refinance?expand_more
A renewal is a new term on the existing mortgage at the end of your current term. Balance, lender, and amortization usually stay the same. A refinance is a new mortgage that pays off the old one. You can change the balance (to pull out equity or consolidate debt), the amortization, and the lender. A refinance can be done mid-term but usually triggers a prepayment penalty. See our full Refinance vs Renewal guide.
How is the mortgage refinance penalty calculated in Ontario?expand_more
Canadian lenders charge the greater of three months of interest or an Interest Rate Differential (IRD). On a fixed-rate mortgage at a Big-5 bank with a mid-size balance, IRD penalties typically range from $5,000 to $18,000. The exact number depends on your contract rate, the lender's comparison rate, time remaining on your term, and your balance. Your lender must give you an exact payout figure on request. Deeper walkthrough in our IRD penalty guide.
What does it cost to refinance a mortgage in Ontario?expand_more
Typical Ontario refinance closing costs: appraisal $300 to $500, legal fees $800 to $1,500, title insurance $300 to $500, and a lender discharge fee of $250 to $400 if you are switching lenders. The biggest single line item is usually the prepayment penalty, which can run $0 if you are at renewal or $5,000 to $18,000 mid-term.
Can I refinance to consolidate higher-interest debt?expand_more
Yes. Many Ontario homeowners refinance to roll credit-card balances, lines of credit, or auto loans into the mortgage at a much lower rate. Run the math first: compare the interest you would pay on the existing debt over the next 5 years against the refinance setup cost plus the new mortgage interest on the same balance. The calculator above helps you model this. Speak with a licensed mortgage agent before deciding.
How much equity can I access when I refinance in Canada?expand_more
Canadian lenders typically allow refinancing up to 80% of your home value (the standard loan-to-value cap for an uninsured refinance). On a $900,000 home, that is up to $720,000 in total mortgage. Subtract your existing balance to see how much new money you can pull out. A HELOC is capped at 65% of home value by the FCAC.
Can I refinance with a collateral charge mortgage?expand_more
Yes, but you cannot transfer a collateral charge to a new lender. TD, Tangerine, and some credit unions register mortgages as collateral charges, often for up to 125% of the home value. To switch lenders you must discharge the existing charge and re-register the new one, adding $800 to $1,500 in legal fees. Ask your lender before signing whether they register as collateral or standard charge.
Should I refinance or just wait for renewal?expand_more
If you are within 0 to 4 months of renewal and do not need to pull out equity, wait for renewal: no penalty, no legal fees. If you need cash for renovation, debt consolidation, or a second property, or if rates have dropped enough to clear the penalty plus closing costs in under 2 years, refinance early. The calculator quantifies which path saves more on your specific numbers.
Is this mortgage calculator free to use?expand_more
Yes, completely free. There is no credit check and no commitment. You can run as many scenarios as you want. Results are shown immediately after you enter your details.
How accurate are the calculator's results?expand_more
The math is precise. Payments are calculated using standard Canadian semi-annual compounding. However, the rates you enter are estimates. Your actual rate will depend on your credit profile, lender, property type, and loan-to-value ratio.
What rate should I enter for fixed vs variable in 2026?expand_more
As of early 2026, five-year fixed rates in Ontario typically sit in the high 4s to low 5s, with five-year variable rates often slightly higher at the start of the term. For current ranges and how to choose, see our variable vs fixed guide.
Does the calculator account for the federal stress test?expand_more
No. This tool estimates the payment at the rate you enter. The federal stress test requires you to qualify at the higher of 5.25% or your contract rate plus 2%. If you are refinancing or switching lenders at renewal, you must repass the stress test, see our 2026 stress test guide.
Can I see total interest paid over the full term?expand_more
Yes. The calculator shows both your monthly payment and your total interest cost over the term you select. Total interest is the most useful number when comparing two competing offers.
What if my renewal date is more than 120 days away?expand_more
Most Canadian lenders only let you lock in a rate within 120 days of your renewal date. Use the calculator now to model what current rates would do to your payment, so you know whether to start shopping aggressively when the rate-hold window opens. See our 120-day renewal guide.
Can I get the actual rate Jenny would offer me?expand_more
Yes. Book a free 15-minute discovery call. Jenny can pull live rates from over 50 lenders against your specific situation and tell you in writing whether you can beat your bank's renewal offer or improve on a refinance quote.
The 120-Day Renewal Window: Your Action Timeline
Most Canadian lenders open their renewal window 120 days before your maturity date. That is four months. Most homeowners use about four days. The gap between those two timelines is where the savings live.
Here is what a well-run renewal timeline actually looks like, and why each step has a specific timing purpose:
Day 0 of the window: run this calculator
Model your renewal at your current lender's posted 5-year rate, then at a rate 0.30% lower. That spread is the value of shopping. On a $700,000 balance it is roughly $2,100 per year, or $10,500 over a five-year term. Knowing that number before you make any calls puts you in a stronger position.
90 days out: start rate shopping
At 90 days, a mortgage agent can pull rate holds from multiple lenders and submit a conditional application to reserve a rate. Rate holds are typically good for 90 to 120 days. You are not committed to anything. You are creating leverage.
45 days out: present competing offers to your current lender
Bring the better competing rate to your current lender and ask them to match. Banks will often improve their renewal offer by 0.10% to 0.25% when shown a written competing offer. They prefer keeping you over losing the mortgage. This step costs five minutes and frequently saves thousands. If they do not match, you have already qualified elsewhere.
7 days out: final decision and documents
At this stage, sign with whoever won. If switching lenders, confirm documents are in order (title insurance, legal instructions). If staying put, countersign your current lender's renewal offer. Do not let the lender rush you into signing before 7 days out. You have the time. Use it.
The only thing that changes if you reach maturity without signing is that you roll into an open mortgage at a higher rate (usually prime plus 1% or the lender's posted 6-month rate). It is not a disaster, but it is expensive. The 120-day window exists so you never need to find out.
What Your Bank's Renewal Letter Is Actually Doing
The renewal letter your bank mails arrives with a rate and a monthly payment, formatted to look like a final offer. It is not. It is a price test.
The reason banks send a letter with a rate that is 0.20% to 0.40% above what they will eventually agree to is simple: roughly 60% to 70% of mortgage holders sign the letter without comparing alternatives. The bank knows this. The posted-rate letter is not the bank's best offer to you. It is the bank's best offer to the portion of its customers who will not shop. The other customers get a better rate when they ask.
The math on this is not subtle. On a $650,000 balance, 0.30% over five years is approximately $9,750 in additional interest. That is a meaningful number for what amounts to a five-minute phone call or a single email to a licensed mortgage agent who can bring a competing offer to the conversation.
What the letter also will not tell you: whether your mortgage is registered as a standard charge or a collateral charge (collateral charges cost more to transfer), whether switching lenders would trigger the stress test (switching at renewal usually does), or whether your amortization schedule is on track for your retirement timeline. The calculator helps you model all of this before you sign anything.
The one-sentence version:
Your renewal letter shows you the rate you get if you do nothing. The rate you get if you do something is usually better.
When Breaking Your Mortgage Early Actually Makes Sense
Most advice on breaking a mortgage early stops at "penalties are expensive, don't do it." That is incomplete. The question is never just "what is the penalty?" The real question is whether the rate improvement, the equity pull, or the restructured amortization recovers the penalty cost within a time frame that makes sense for you.
In the last few years I have seen files where the penalty was $14,000 and the break was still the right move, because the homeowner was carrying $80,000 in credit card and line-of-credit debt at 20% interest. Rolling that debt into a refinanced mortgage at 5% saved more than $1,000 per month. The penalty recovered in under 14 months.
Three situations where the math usually works in favour of breaking early:
| Situation | Why breaking may win | Watch for |
|---|---|---|
| High-interest debt ($30K+) | Rate arbitrage: 20% credit card vs 5% mortgage saves ~$4,500/yr per $30K | Only works if you do not reaccumulate the debt after consolidation |
| Rates dropped 1%+ since you signed | On $700K, 1% rate drop saves $7,000/yr. IRD penalty recovers in 1.5-2.5 years | Confirm term remaining is long enough to recoup penalty before your next renewal |
| Collateral charge + 80%+ LTV needing equity | HELOC not available above 65% LTV; refinance is the only way to access equity | Full refinance closing costs ($800-$1,500 legal) apply even if you stay with same lender |
Use the calculator to model what your monthly payment looks like if you refinance today at the current market rate with the new balance you need. Compare total interest over the remaining term before vs after. If the post-penalty saving exceeds the penalty cost within 24 months, the math is usually in your favour. A mortgage agent can pull your lender's exact payout figure in 24 hours.
Refinance and the Amortization Reset: Lower Payments vs More Interest
One of the most common refinance goals is lowering the monthly payment. You can do this two ways: get a lower rate, or extend the amortization. Both reduce the monthly number. Only one of them reduces total interest paid.
The calculator lets you test both. Here is what the math typically shows on a $500,000 refinanced balance:
| Scenario | Rate | Amort. | Est. monthly payment | Total interest (5-yr term) |
|---|---|---|---|---|
| Current mortgage (baseline) | 5.50% | 20 yr | ~$3,433 | ~$133,000 |
| Refinance: better rate only | 4.90% | 20 yr | ~$3,269 | ~$118,000 |
| Refinance: extend amortization only | 5.50% | 30 yr | ~$2,839 | ~$135,000 (5-yr), total mortgage cost rises significantly |
| Refinance: better rate + reset amort | 4.90% | 30 yr | ~$2,651 | ~$118,000 (5-yr); long-term interest rises if amort is not paid down |
The takeaway: extending the amortization reduces monthly cash pressure but adds interest over the life of the mortgage. In a debt consolidation scenario, the freed monthly cash flow is the point. In a rate-improvement refinance where cash flow is not the issue, keeping the existing amortization is usually the better long-term decision.
Run both scenarios in the calculator above. The total interest line is the number that tells you whether the amortization reset is buying you real value or just a lower monthly statement.
Renew or Refinance: Five Questions That Settle It
Before you run the full calculator, answer these five questions in order. The first "yes" tells you which path to take.
Q1. Do you need to pull equity out of your home?
(for renovation, debt consolidation, second property, or cash cushion)
YES
You need a refinance. A renewal cannot change your balance. Proceed to calculate what you need.
NO
Move to Q2.
Q2. Are you within 0 to 4 months of your renewal date?
YES
Renew. No penalty, lowest setup cost. Use the calculator to compare your bank's offer vs the market.
NO
Move to Q3.
Q3. Have market rates dropped by 1% or more since you signed?
YES
Run the break-even math: penalty cost vs annual interest saving. If saving recovers penalty within 24 months, early refinance is worth analyzing further.
NO
Move to Q4.
Q4. Do you want to change the amortization or add a borrower?
YES
Refinance required. Renewal cannot change amortization or add or remove a co-borrower from title.
NO
Move to Q5.
Q5. Is your current mortgage registered as a collateral charge?
Check with your lender: TD, Tangerine, and some credit unions default to collateral charge registration.
YES
A collateral charge cannot be transferred. Switching lenders at renewal costs $800-$1,500 in extra legal fees. Factor this into your comparison.
NO (standard charge)
You can switch lenders at renewal at little or no cost using a standard transfer or switch program. This gives you full market access.
What This Calculator Cannot Tell You
This tool is accurate on the math it runs. There are four things it cannot calculate, and every one of them affects your actual cost. Knowing the limits is part of using any calculator well.
Your exact IRD penalty
The Interest Rate Differential penalty is calculated by your lender using their own posted rate formula. Big-5 bank IRD calculations produce larger penalties than credit unions or monoline lenders with the same numbers. The only accurate figure is your lender's payout statement, which they are required to provide on request. Call them and ask for the discharge amount as of a specific future date.
Your stress-test qualification
If you refinance or switch lenders at renewal, you must re-qualify at the federal stress test rate (the higher of 5.25% or your contract rate plus 2%). The calculator shows your payment at the rate you enter, not whether you qualify for that rate. A mortgage agent can run your full qualifying picture including income, debt ratios, and property type in about 15 minutes.
Your current home's appraised value
If you enter a home value that turns out to be 10% above what an appraisal produces, your refinance ceiling drops by that same percentage. Lenders cap an uninsured refinance at 80% of appraised value, not 80% of what you estimate. A rough online tool or recent comparables can give you a range, but only a lender-ordered appraisal produces the number that matters for approval.
Whether a rate hold is available
The rates you enter are estimates. Whether a specific lender will actually hold that rate for your file depends on your credit profile, property type, loan-to-value, income documentation, and market conditions at the time of application. A rate you model today is a planning target, not a commitment. Lenders issue rate holds only after reviewing a real application.
The right way to use any mortgage calculator:
Use it to understand the directional impact of rate and amortization changes, and to build the case for shopping your renewal. Do not use it to make a final decision without confirming the penalty figure, the stress test, the appraised value, and the live rate availability. Those four inputs require real information from real lenders. A mortgage agent gathers all four on the same call.
Related Guides
Once you have run your numbers, these guides walk you through the next steps.
Pillar Guide
Refinance vs Renewal in Canada
The complete decision guide: situations where renewal wins, situations where refinance wins, and how to model both with real numbers.
Pillar Guide
Ontario Mortgage Renewal Hub
When to start, how to negotiate, switching lenders, penalties, and the 120-day playbook.
Refinance
Refinancing in Ontario: The Break-Even Math
The penalty-vs-savings calculation most homeowners skip, and how to tell whether your refinance recovers its cost before you commit.
Equity
HELOC vs Refinance in Toronto
When a HELOC beats a refinance on cost, when it loses, and the IRD-penalty trap that flips the math.
Rates
Variable vs Fixed in 2026
A clear comparison of the trade-offs, with break-even math and a recommendation framework.
Qualifying
2026 Mortgage Stress Test
What the federal stress test means at renewal or refinance, and whether switching lenders forces you to requalify.
What to Do With Your Results
Run Your Numbers
Model both scenarios: a straight renewal at your bank's quoted rate, and a refinance with any new balance you need. Compare monthly payment and total interest.
Book a Free Call
Share your results with Jenny. She will pull live rates from 50+ lenders against your situation and confirm whether your bank's offer can be beaten.
Save Real Money
On a $750,000 balance, a 0.20% rate improvement saves approximately $7,500 over a five-year term. A debt-consolidation refinance can save far more.
Ready to Put These Numbers to Work?
Book a free 15-minute call with Jenny. She will compare your renewal and refinance options across 50+ lenders and find you the best deal available.