Why does my payment change so much at renewal?

Because the entire remaining balance is re-priced at the new rate. On a mortgage taken out at 1.9% and renewing at 4.5%, the interest portion of every payment more than doubles, and since the amortization is unchanged the payment must rise to cover it.

Do I have to pass the stress test to renew?

Not with your current lender. If you switch lenders without increasing the loan or the amortization, insured mortgages have always been exempt and, since November 21, 2024, uninsured mortgages are exempt too. You must re-qualify if you refinance, borrow more or extend the amortization.

Should I extend my amortization to lower the payment?

It reduces the monthly payment but increases total interest and the number of years you pay. It can be the right move if the alternative is missing payments, and you can shorten it again later with prepayments. Most lenders treat it as a refinance and require you to re-qualify.

How do I get a better renewal rate?

The first offer in the renewal letter is rarely the best. Ask your lender for their best rate, get a quote from a broker or another lender, and use the competing offer. Start about four months before the term ends, which is when most lenders let you hold a rate.

Should I choose fixed or variable at renewal?

The calculator cannot answer that; it depends on where rates go. What it can show is the payment at any rate you enter, so you can see how much room you have if a variable rate rises. Try the rate you are offered plus one or two percentage points.

What is the break-even rate shown?

The renewal rate at which your payment would stay exactly the same as today, given the balance and the remaining amortization. Any offer below it lowers your payment; any offer above it raises it.

Does the calculator include prepayments I made?

No. It follows the original schedule with no extra payments. If you made lump-sum prepayments or increased payments, your actual balance is lower; enter your real balance as the original amount with the remaining amortization as the amortization to get a closer answer.

Where do I find the balance and remaining amortization?

On your renewal statement, which your lender must send at least 21 days before the term ends, or in your online banking under mortgage details. Enter those two numbers directly; the original-mortgage mode is only an estimate.

Should I extend my amortization to lower the payment?

Extending to 25 or 30 years cuts the monthly payment but adds interest over the life of the loan, often tens of thousands of dollars. The lever table shows both. A middle path is to extend now and use prepayment privileges later when your budget allows.

Is it worth paying to switch lenders for a lower rate?

Enter the switching costs (discharge fee, legal or registration, appraisal) and the calculator shows the rate at which the interest saved over the new term pays for them. Many lenders cover those costs to win your business; ask before you assume you will pay them.

Mortgage Renewal Calculator: Your New Payment

Type the balance and amortization from your renewal statement and the rate you have been offered, and see exactly how much your payment changes per month and per year, then compare every lever: extend the amortization, keep your old payment, pay a lump sum first, negotiate 0.25% off, or go variable.

Your payment goes up by$447.31 per monthFrom $2,061.41 to $2,508.72 (+21.7%, $5,368 a year) when $412,000 renews at 4.09% with 20 years left. Over the new 5-year term you pay $76,409 of interest, $41,679 more than if your old rate had continued.

Payment per month under each option

Your options	Payment	Change / month	Interest, new term	Extra interest over the life	Owing at end of term
Renew as is (same amortization)	$2,508.72	+$447.31	$76,409	—	$337,886
Extend amortization to 25 years	$2,187.35	+$125.94	$78,463	+$54,112	$359,222
Extend amortization to 30 years	$1,980.18	−$81.23	$79,788	+$110,768	$372,977
Keep the old payment (shorter amortization) (paid off in 27.8 yrs)	$2,061.23	−$0.18	$79,270	+$85,535	$367,596
Negotiate 0.25% lower	$2,455.51	+$394.10	$71,616	saves $12,773	$336,285
Negotiate 0.50% lower	$2,402.89	+$341.48	$66,836	saves $25,401	$334,663
Variable at 3.65% instead of fixed	$2,421.31	+$359.90	$68,515	saves $7,894 this term if rates hold

Rules worth knowing. Renewing with your current lender needs no stress test. Switching lenders at renewal with the same amount and amortization also needs no stress test for insured mortgages and, since November 2024, for uninsured ones. Refinancing (adding money or extending amortization at a new lender) does. Breaking early costs a penalty: three months' interest on a variable, the greater of that and the interest-rate differential on a fixed. Your lender must send a renewal statement at least 21 days before the term ends; start shopping 120 days out, when rate holds begin. The rate that would keep your payment unchanged is 1.89%.

Show the math

Balance $412,000 and 20 years remaining are taken from your statement; the old payment is the level payment at 1.89% on that balance and amortization. Each option re-amortizes the balance at the new rate over the stated years; "keep the old payment" solves for the amortization that payment supports at the new rate. Term interest sums the first 5 years of each schedule; "extra interest over the life" compares total interest to the as-is option. Variable rates are compounded monthly. The switch break-even is the rate at which term interest saved equals your switching cost.

How to renew on your terms

Your lender must send a renewal notice at least 21 days before the term ends. The posted rate in that letter is almost never the best one.

120 days before renewalStart 120 days out: most lenders hold a rate for 90 to 120 days, so you can lock a rate now and still take a lower one if rates fall.FCAC: renewing your mortgage ↗
90 days beforeGet two outside quotes (a broker and another lender) and show them to your lender; a straight switch of an uninsured mortgage no longer needs to pass the stress test.OSFI: stress test on straight switches ↗
At renewalMake a lump-sum prepayment before the renewal date: at renewal there is no limit and no penalty.
If the new payment does not fit, ask to re-extend the amortization at renewal, then use the prepayment privilege to shorten it again when you can.

Common questions

Frequently asked questions

Why does my payment change so much at renewal?: Because the entire remaining balance is re-priced at the new rate. On a mortgage taken out at 1.9% and renewing at 4.5%, the interest portion of every payment more than doubles, and since the amortization is unchanged the payment must rise to cover it.
Do I have to pass the stress test to renew?: Not with your current lender. If you switch lenders without increasing the loan or the amortization, insured mortgages have always been exempt and, since November 21, 2024, uninsured mortgages are exempt too. You must re-qualify if you refinance, borrow more or extend the amortization.
Should I extend my amortization to lower the payment?: It reduces the monthly payment but increases total interest and the number of years you pay. It can be the right move if the alternative is missing payments, and you can shorten it again later with prepayments. Most lenders treat it as a refinance and require you to re-qualify.
How do I get a better renewal rate?: The first offer in the renewal letter is rarely the best. Ask your lender for their best rate, get a quote from a broker or another lender, and use the competing offer. Start about four months before the term ends, which is when most lenders let you hold a rate.
Should I choose fixed or variable at renewal?: The calculator cannot answer that; it depends on where rates go. What it can show is the payment at any rate you enter, so you can see how much room you have if a variable rate rises. Try the rate you are offered plus one or two percentage points.
What is the break-even rate shown?: The renewal rate at which your payment would stay exactly the same as today, given the balance and the remaining amortization. Any offer below it lowers your payment; any offer above it raises it.
Does the calculator include prepayments I made?: No. It follows the original schedule with no extra payments. If you made lump-sum prepayments or increased payments, your actual balance is lower; enter your real balance as the original amount with the remaining amortization as the amortization to get a closer answer.
Where do I find the balance and remaining amortization?: On your renewal statement, which your lender must send at least 21 days before the term ends, or in your online banking under mortgage details. Enter those two numbers directly; the original-mortgage mode is only an estimate.
Should I extend my amortization to lower the payment?: Extending to 25 or 30 years cuts the monthly payment but adds interest over the life of the loan, often tens of thousands of dollars. The lever table shows both. A middle path is to extend now and use prepayment privileges later when your budget allows.
Do I have to pass the stress test to switch lenders at renewal?: Not for a straight switch. Insured mortgages have been exempt for years, and since November 21, 2024 uninsured borrowers switching lenders at renewal with the same amount and amortization are exempt too. Refinancing, which means borrowing more or changing the amortization at a new lender, still requires the test.
Is it worth paying to switch lenders for a lower rate?: Enter the switching costs (discharge fee, legal or registration, appraisal) and the calculator shows the rate at which the interest saved over the new term pays for them. Many lenders cover those costs to win your business; ask before you assume you will pay them.

Full guide: how it works, a worked example, every rule and every source Read the guide →

Sources

Every figure on this page comes from one of these primary sources. Data last verified September 7, 2026.

Put this calculator on your own website

Free for brokers, accountants, advisors and bloggers. Paste this where you want the calculator; it sizes itself and credits GlassLayer with a link.

<iframe src="https://glasslayer.ca/embed/mortgage-renewal-calculator" title="Mortgage Renewal Calculator: Your New Payment" style="width:100%;border:0;min-height:900px" loading="lazy"></iframe>
<script>addEventListener('message',e=>{if(e.data&&e.data.type==='glasslayer-embed-height'){document.querySelectorAll('iframe[src*="/embed/"]').forEach(f=>{if(f.contentWindow===e.source)f.style.height=e.data.height+'px'})}})</script>

Data verified for tax year 2026: September 7, 2026 Updated September 7, 2026 By Nishant Malik, founder of GlassLayer