Renew or switch: mortgage renewal calculator
Your lender's renewal letter is an opening offer. Put it next to a rate from another lender, add what it costs to move, and see which one is cheaper over the term.
The example rates are made up to show how the tool works. They are not current market rates. Use the rates you have been quoted.
Do you have to pass the stress test to switch?
Often not. Two federal changes in late 2024 mean most "straight switches" at renewal skip the qualifying-rate test:
- Uninsured mortgages (20% or more equity, no CMHC insurance): since November 21, 2024, OSFI no longer expects federally regulated lenders to apply the minimum qualifying rate when you move a stand-alone uninsured mortgage from one federally regulated lender to another, with no increase in the amortization or the loan amount. The balance can go up by $3,000 at most to cover costs like a penalty or fees. Equity take-out is not allowed.
- Insured mortgages: the federal government says insured mortgage holders can switch lenders at renewal without another stress test (Canadian Mortgage Charter, Budget 2024). From December 16, 2024, the mortgage insurance rules also drop the test for low-ratio (loan-to-value up to 80%) renewals that started at a federally regulated lender, keep the same amortization schedule and add no more than $3,000.
The new lender still checks your income, debts and credit. Credit unions regulated by the province set their own rules.
Quick check: is it a straight switch?
How the comparison works
monthly rate i = (1 + annual rate / 2)^(2/12) − 1 (fixed rates compound semi-annually)
payment = balance × i / (1 − (1 + i)^−n), n = remaining amortization in months
interest over the term = sum of monthly interest for the term months
cost of switching = interest over the term + switching costs
savings = interest if you renew − cost of switchingBoth sides keep the same remaining amortization, so the payments differ only because of the rate. The total cost for each side is the interest you pay during the term plus any costs. If you add the costs to the mortgage, they count in full and you also pay interest on them.
Things this does not include: a penalty for leaving before your term ends (see the prepayment penalty calculator), cash-back offers, or different prepayment privileges. Compare those by reading each offer.
This is an estimate for general information. It is not advice about your situation. Check the final numbers with your lender, your real estate lawyer, or the official source.
Sources
- OSFI letter: uninsured straight switches exempt from the MQR (November 21, 2024)
- OSFI: Minimum qualifying rate for uninsured mortgages (modified January 29, 2026)
- Department of Finance Canada: "Straight switches" and portfolio insurance (December 16, 2024)
- Department of Finance Canada: mortgage reform announcement (September 16, 2024)
- FCAC: Renewing your mortgage (21-day renewal statement)
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