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Mortgage Renewal Savings Calculator — before you sign the bank's letter

Banks count on renewal autopilot. Enter the rate on your renewal letter and a competitive rate, and see what the difference is worth — monthly, over your term, and in equity. Since Nov 2024, straight switches don't even need a stress test.

✓ Updated July 17, 2026 · reflects Nov 2024 switch rules

Your renewal

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As of July 2026, well-qualified renewers are seeing 5-year fixed rates around 3.94–4.3%. First renewal letters often quote much higher.

What the difference is worth

Total advantage over your term
$—
lower payments + lower balance at next renewal
Bank's offer
$—
—% · monthly
Competitive rate
$—
—% · monthly
Monthly payment difference$—
Interest saved over the term$—
Extra principal paid down by term end$—
Assumes the same payment schedule (monthly) and remaining amortization for both offers, Canadian semi-annual compounding, no penalty (renewal switches at maturity have none).
Get a written competing offer before you talk to your bank.

A licensed Alberta broker can produce one in about a day — then your bank either matches it or you switch. Either way, you win.

Shop my renewal free →

Why renewal is the cheapest moment to save on your mortgage

At maturity there is no penalty to leave your lender, and since November 21, 2024, a straight switch (same balance, same amortization) doesn't require re-passing the stress test — OSFI removed that barrier for uninsured mortgages, matching the existing rule for insured ones. That makes renewal the one time your mortgage is fully portable at almost no cost.

Verified example (July 2026): $390,000 balance, 20 years remaining, 5-year term. Bank's letter at 4.89% vs. a competitive 4.19%: payment drops about $145/month, you pay roughly $12,800 less interest over the term, and you owe about $4,100 less at the next renewal.

The renewal timeline that protects you

  1. 120 days out: start shopping. Lenders hold rates 90–120 days — lock a backup.
  2. 90–30 days out: get a written competing offer (a broker does this for free). Ask your bank to beat it, not match it.
  3. 21–30 days out: banks typically mail their renewal letter now — after most people's leverage is gone. Yours won't be.
  4. Maturity: sign the better deal. Switching costs are minor (discharge fee ~$300–400 in Alberta; new lenders often cover transfer costs).

Why the first offer is rarely the best offer

Renewal letters commonly quote at or near posted rates — the sticker price almost no new customer pays. Banks rely on inertia: most Canadian borrowers renew with their existing lender, many without negotiating at all. A written outside offer flips the dynamic in minutes.

Renewal FAQs

Do I need to re-qualify or pass the stress test to switch?

For a straight switch at renewal — same loan amount, same amortization — no stress test applies (rule change effective November 21, 2024). The new lender still verifies basics like income and property, but the 2%-higher qualifying hurdle is gone.

What does switching cost?

No penalty at maturity. Expect a discharge/assignment fee from your old lender (roughly $300–400 in Alberta); new lenders often cover appraisal and transfer fees on standard switches. Net cost is frequently under $400 — against thousands in savings.

When should I start?

120 days before maturity. That's when rate holds begin, and it gives you time to compare without pressure. If your renewal is inside 30 days, move quickly — a broker can still turn a competing offer around in about a day.

Can I change my amortization or borrow more at renewal?

Yes, but that's a refinance rather than a straight switch — the stress test then applies, and pricing can differ. If you want to consolidate debt or extend amortization to lower payments, see our refinance guide.

My bank matched the competing rate. Should I still switch?

If the match is genuine and the product terms are equal (prepayment privileges, penalty formula, portability), staying is fine — you just saved thousands with one email. Watch the fine print: big-bank fixed-rate penalties use posted-rate IRD formulas that can cost far more if you ever break the term early.

Keep going

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