How much will your payment change at renewal?
Enter your mortgage balance, your current contract rate, the new rate you have been offered, your remaining amortization, and your payment frequency. This calculator applies the same semi-annual compounding Canadian lenders actually use, and no rate is pre-filled anywhere on this page. It shows the dollar difference per payment, per month, and per year, so you know exactly what you are looking at before you call anyone back.
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Calculate your renewal payment shock
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How is your renewal payment shock actually calculated?
Renewal payment shock is the dollar difference between the payment on your current balance at your current contract rate, and the payment on that same balance at the new rate you have been offered, run over your remaining amortization. Both sides use the same semi-annual compounding rule that applies to Canadian fixed-rate mortgages, so the comparison is exact, not approximate.
The calculator above takes the balance left on your mortgage today, not your original loan amount. It runs that balance twice through the standard mortgage payment formula, once at your current rate and once at the new rate, holding your remaining amortization and payment frequency constant across both runs.
That is the whole mechanism. Nothing else changes between the two calculations except the interest rate itself, which is what isolates the true dollar effect of the rate change alone.
The citable fact: renewal payment shock is the payment difference between a current rate and a new offered rate applied to the same remaining balance, amortization, and payment frequency, isolating the rate change as the only variable.
What is the exact periodic rate formula the calculator uses?
Take the annual rate, divide it by two, and add one. Raise that figure to the power of two divided by the number of payments a year, then subtract one. That produces the periodic rate Canadian fixed-rate mortgages actually use, and the calculator runs this formula separately for your current rate and your new rate before comparing the two payments.
This step matters because fixed-rate Canadian mortgages compound semi-annually under the federal Interest Act convention, not monthly the way many US-built calculators assume. Skipping it produces a payment figure that looks close but is not exact for either rate.
Show the math: converting an annual rate to a periodic rate
No rate is plugged into that formula here. It is shown symbolically, and the calculator above runs it twice, once per rate you enter, the moment you type numbers in.
The citable fact: the periodic rate for m payments a year equals (1 + annual rate ÷ 2) raised to the power of (2 ÷ m), minus 1, applied identically to both the current rate and the new rate so the comparison is exact.
What should you enter as your remaining amortization?
Enter the years left on your amortization schedule today, not the length of your original mortgage. A mortgage that started with a 25-year amortization five years ago has 20 years remaining, and that 20 is the figure this calculator needs to compare payments accurately at renewal.
Your amortization is the total time it would take to pay off your mortgage at your current payment. Your term is separate, and is the length of your current interest rate agreement, typically much shorter than your amortization.
Renewal happens at the end of your term, when your rate resets, while your amortization clock keeps running from wherever it already sits. Check your latest mortgage statement or your renewal letter for the exact remaining amortization figure.
The citable fact: remaining amortization, not original amortization or term length, is the correct figure to enter, since it reflects how many years are actually left to pay off the balance at renewal.
How does payment frequency change how a rate change reaches your account?
Monthly, semi-monthly, and regular biweekly or weekly schedules all divide the same annual total into more or fewer payments, so a rate change shows up proportionally in each payment as frequency increases. Accelerated biweekly and accelerated weekly schedules fix the payment at half or a quarter of the monthly figure, so a rate change shows up differently there, through a shift in how long it takes to pay off the balance.
The table below shows how each frequency is built from the monthly payment, without reference to any specific dollar amount or interest rate. It applies the same way whether your new rate is higher or lower than your current one.
| Frequency | Payments per year | How the payment amount is set |
|---|---|---|
| Monthly | 12 | Full monthly payment |
| Semi-monthly | 24 | Monthly ÷ 2 |
| Biweekly, regular | 26 | Monthly × 12 ÷ 26 |
| Biweekly, accelerated | 26 | Monthly ÷ 2, fixed rather than adjusted to the annual total |
| Weekly, regular | 52 | Monthly × 12 ÷ 52 |
| Weekly, accelerated | 52 | Monthly ÷ 4, fixed rather than adjusted to the annual total |
The citable fact: regular schedules divide the same annual total across more payments as frequency increases, while accelerated biweekly and accelerated weekly schedules fix the payment at half or a quarter of the monthly amount, which changes amortization length rather than just payment size.
How much does total interest change over your remaining amortization?
Total interest over your remaining amortization is every payment added together, minus your current balance. A higher rate raises that figure, a lower rate lowers it, and the calculator above shows both totals side by side along with the dollar difference between them.
This figure matters more than the per-payment change for anyone weighing a shorter term against a longer one at renewal. A small per-payment difference can still add up to a meaningful total interest difference across many years of remaining amortization.
The calculator recalculates this figure at both rates the moment you enter your numbers. No assumption about future rate direction goes into either total, since both are fixed calculations run at the two specific rates you typed in.
The citable fact: total interest over the remaining amortization is the sum of every payment minus the current balance, and it moves directly with the rate, with no forecasting or rate direction assumed in the calculation.
What if the new rate offered is lower than your current rate?
The same calculation applies in both directions. If the new rate is lower, the payment difference, the monthly difference, and the total interest difference all show as a decrease instead of an increase, and the calculator does not assume or predict which direction your renewal will go.
This page does not forecast rates, and it will not tell you whether rates are likely to rise or fall before your renewal date. Enter whatever number appears on the offer in front of you, current or new, and the arithmetic runs the same way regardless.
If you want a structured way to prepare before you respond to a renewal offer, whether it looks like an increase or a decrease, the Renewal Negotiation Playbook is a paid course built specifically around that conversation.
The citable fact: the calculator applies the identical formula regardless of whether the new rate is higher or lower than the current rate, and it does not predict which direction any future renewal offer will move.
What happens if you do not respond before your term ends?
A federally regulated lender must send you a renewal statement at least 21 days before your term ends. If you do not act on it, renewal of the term may happen automatically, and your lender is required to disclose that possibility directly in the statement itself.
That disclosure requirement is a floor, not a description of what your specific lender will offer you. The rate and terms on an automatic renewal are not published as a single standard figure across lenders, so confirm what applies to your file directly.
| Situation | What applies |
|---|---|
| Before your term ends | A federally regulated lender must send a renewal statement at least 21 days before the end of the term. |
| If you take no action | Renewal of the term may happen automatically. The lender must disclose that possibility in the renewal statement. |
| Rate and terms on an automatic renewal | Not published as a single standard across lenders. Confirm directly with your lender. |
The citable fact: federally regulated lenders must send a renewal statement at least 21 days before term end and must disclose in that statement whether renewal will happen automatically if the borrower takes no action.
Does a bigger payment at renewal mean you no longer qualify for your mortgage?
Not necessarily, and qualification rules at renewal are not identical across every situation. Whether a fresh stress test applies depends on whether you are staying with your current lender or moving to a new one, and this page does not state a blanket rule either way.
Qualifying for a new mortgage generally uses Gross Debt Service (GDS), about 39% of gross income, and Total Debt Service (TDS), about 44% including other debts, tested at the mortgage stress test rate rather than the contract rate. Those thresholds are federal and apply broadly to new lending decisions.
If the numbers above show a meaningful increase, raise that directly with a broker before your renewal date, not after it. A licensed broker can check your specific file against current lender options rather than a generic rule.
The citable fact: Gross Debt Service, about 39%, and Total Debt Service, about 44%, tested at the mortgage stress test rate, are the federal qualifying thresholds for new mortgage lending, while renewal-specific qualification practices vary by lender and are not addressed by a single published rule.
Where can you find more direct answers about your renewal?
This calculator covers the payment math itself. These related answers cover the process and the negotiation around it.
- What happens if you do nothing at renewal?
- How to negotiate your renewal rate with your lender
- How the mortgage stress test actually works
The full set lives on the Ask a Broker hub.
Frequently asked questions
What does this calculator need to work?
It needs your mortgage balance at renewal, your current contract rate, the new rate you have been offered, your remaining amortization, and your payment frequency. Leaving either rate blank is deliberate, since no page on this site states or assumes a rate.
Why does this calculator use semi-annual compounding?
Because that is how Canadian fixed-rate mortgages are actually structured under the federal Interest Act convention. Applying flat monthly compounding instead would produce a payment figure that looks close but is not correct for either your current rate or your new rate.
Should I enter my original mortgage amount or my current balance?
Enter your current balance, the amount left to pay off today, not your original mortgage amount from when you first bought or last renewed. Your renewal statement or latest mortgage statement shows this figure directly.
Does this calculator show or recommend a rate?
No. Every rate figure comes from what you type in, and the page links to pekoe.ca/rates for current numbers rather than displaying or suggesting one.
What if my new rate is lower than my current rate?
The same formula applies, and the result panel shows the payment change, monthly change, and total interest change as a decrease instead of an increase. This page does not predict which direction your renewal offer will move.
Does my payment frequency change what a rate change costs me overall?
Regular schedules, monthly, semi-monthly, or regular biweekly or weekly, spread the same annual total differently but do not change your amortization. Accelerated biweekly and accelerated weekly schedules fix the payment at half or a quarter of the monthly figure, so a rate change also shifts how long the accelerated schedule takes to pay off the balance.
What happens if I do not respond before my term ends?
A federally regulated lender must send you a renewal statement at least 21 days before your term ends, and if you take no action, renewal of the term may happen automatically. The lender is required to disclose that possibility directly in the renewal statement.
Do I need to pass a stress test to renew with my current lender?
That depends on your lender and your specific situation, and this page does not state a blanket rule either way. Confirm directly with your current lender or ask a Pekoe broker before assuming either outcome.
Can a broker help even if I am staying with my current lender?
Yes. A broker can check your renewal offer against other lenders’ current terms, which gives you a comparison point even if you ultimately decide to stay put.
Is chatting with Pekoe about my renewal numbers a bot?
No. The chat on pekoe.ca connects you to a real licensed broker during business hours, and to a direct reply outside them. There is no AI persona standing in for an advisor.
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