How to Compare Mortgage Renewal Offers Canada

Direct answer: To compare two mortgage renewal offers in Canada, put both offers on the same balance, amortization, term length, payment frequency and compounding convention. Then compare scheduled payment, interest during the term, principal repaid, ending balance and net switching cost. The lowest rate or lowest payment is not enough by itself.

Run your numbers in the Mortgage Renewal Offer Analyzer Canada, or use the Canadian Mortgage Renewal Analyzer GPT to collect the offer fields conversationally. The engine is validated in the mortgage renewal validation report.

Step-by-step comparison

Step	What to enter	Why it matters
1	Renewal balance and remaining amortization	Both offers must start from the same loan position.
2	Rate, term, frequency and compounding	These drive the payment and interest calculation.
3	Fees, penalties, discharge, registration, legal and appraisal costs	Switching costs can erase a lower rate.
4	Cashback and cashback repayment conditions	Cashback reduces net cost only if it is truly kept.
5	Total term cost and ending balance	This shows cost and remaining debt side by side.

Worked example

Assume a $425,000 renewal balance, 20-year amortization, five-year fixed term, monthly payments and semi-annual compounding. Offer B has a lower rate, $395 of fees, $1,000 cashback, $300 discharge, $220 registration, $180 transfer, $750 legal and $250 appraisal costs.

Result	Offer A	Offer B
Rate	4.89% fixed	4.69% fixed
Scheduled payment	$2,767.60 monthly	$2,722.10 monthly
Interest during term	$94,728.13	$90,739.39
Principal repaid	$71,327.68	$72,586.43
Ending balance	$353,672.32	$352,413.57
Net switching cost	$0	$1,095.00
Total term cost	$94,728.13	$91,834.39

In this example, Offer B is estimated to cost $2,893.74 less over the five-year term. It also leaves a slightly lower ending balance because more principal is repaid.

What to ask the lender

• What is the exact payout balance on the renewal or switch date?
• Are there prepayment penalties, discharge fees or administration fees?
• Will the new lender cover legal, appraisal, transfer or registration costs?
• Does cashback need to be repaid if the mortgage is broken early?
• Are prepayment privileges, portability and collateral-charge terms comparable?

Methodology and assumptions

The worked example uses the shipped usecos mortgage renewal engine, Canadian semi-annual compounding, monthly payments, no additional borrowing and no variable-rate changes. Net switching cost equals fees plus penalties and switching costs minus cashback. It excludes tax, property tax, insurance, optional accounts, lender underwriting, broker suitability advice and legal review. Verified July 30, 2026.

Sources: FCAC renewing your mortgage; FCAC renewal disclosure rights; FCAC mortgage terms and amortization; Interest Act, section 6.