Offer A
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Compare renewal offers by total term cost, not just the payment.
Direct answer
A Canadian mortgage renewal offer should be compared by term interest plus net fees after cashback, not by the smallest payment alone. The analyzer only declares a lowest-cost offer when term lengths and comparison balances match. It is a planning tool, not a lender quote, broker recommendation or legal review.
Jump to the calculator ↓1-Click Renewal Presets
Use the compounding frequency shown in your renewal offer or mortgage commitment. Do not guess based only on whether the rate is fixed or variable.
Offer A
Offer B
Total term cost means interest during the selected term plus net switching cost. Principal paid is shown separately because it reduces your ending balance.
Lowest total cost
Switch offer
$91,834.39
| Offer | Payment | Monthly eq. vs current | Total payments | Interest | Principal paid | Ending balance | Net switch cost | Total term cost | Vs cheapest |
|---|---|---|---|---|---|---|---|---|---|
Current lender renewal 4.89% fixed, 5 yr term · Semi-annually | $2,767.60 Monthly | $117.60 vs current Monthly | $166,055.81 | $94,728.13 | $71,327.68 | $353,672.32 | $0.00 | $94,728.13 | +$2,893.74 |
Switch offer 4.69% fixed, 5 yr term · Semi-annually | $2,722.10 Monthly | $72.10 vs current Monthly | $163,325.81 | $90,739.39 | $72,586.43 | $352,413.57 | $1,095.00 | $91,834.39 | Lowest total cost |
Moving your mortgage to a new lender often incurs discharge and legal transfer fees. Adjust the fees below to see if the lower competing rate justifies the switch.
Net Switch Cost
$700.00
After applying cashback
Monthly Cash Savings
+$46.00/mo
Offer B vs Offer A
5-Year Net Savings
+$2,030.00
Clear profit after all fees
Evaluate if breaking your term or switching lenders saves money.
Check Big-5 posted rate IRD penalty vs 3-month interest clawback.
Ensure your current household income passes OSFI stress test for a switch.
Strategy guide: cashback offers, collateral charge discharge fees, and negotiation.
Lenders require your gross debt service (GDS) and total debt service (TDS) ratios to remain under 39% / 44%. Verify your debt ratios before submitting your application.
Action steps to negotiate lower interest rates, eliminate lender fees, and protect your prepayment privileges.
Lenders can lock in renewal rates 120 days ahead of maturity for free. Never wait until the final 30 days when options are limited.
First renewal letters are sent at standard posted rates. Requesting a rate concession routinely drops your rate by 15–35 basis points ($3,000–$8,000 in term savings).
Standard charges can switch to a new lender without legal fees. Collateral charges (TD, Scotia STEP, RBC Homeline) require re-registration, often covered by switch cashbacks.
Ensure your new term permits at least 15% to 20% annual principal prepayments without penalty to accelerate debt reduction.
If taking a $1,000–$3,000 switch rebate, confirm whether breaking the mortgage before term end triggers a mandatory pro-rated clawback.
Under updated OSFI rules, straight renewals/switches with uninsured mortgages to another federally regulated lender without extending amortization are exempt from the B-20 stress test.
Need a full amortization view? Open the Canadian mortgage calculator.
Interest rates shown on UseCOS tools come from Bank of Canada data and carry the date the Bank published them. Tax figures follow the Canada Revenue Agency's published rules for the tax year shown. Other benchmarks are drawn from OSFI and provincial regulators. Always confirm current figures at the official source.
UseCOS provides transparent educational estimates and math comparisons for personal planning. Tools do not guarantee lender approval, tax compliance, or specific mortgage terms.
For binding mortgage rate commitments, loan contracts, or official tax filings, please consult a licensed Canadian mortgage broker, CPA, or official lender representative.
Published: 2026-07-29 · Verified: July 29, 2026 · Author: usecos.app Research & Engineering
These examples are generated from the shipped renewal engine, not duplicated hand math. The comparison uses a $425,000 balance, a five-year term, and different amortization, rate, compounding, fee and cashback assumptions.
| Offer | Payment | Interest | Principal paid | Ending balance | Net switching cost | Total term cost |
|---|---|---|---|---|---|---|
| Current lender | $2,767.60 | $94,728.13 | $71,327.68 | $353,672.32 | $0.00 | $94,728.13 |
| Switch offerLowest cost | $2,722.10 | $90,739.39 | $72,586.43 | $352,413.57 | $1,095.00 | $91,834.39 |
| Lower payment offer | $2,481.51 | $100,283.42 | $48,607.04 | $376,392.96 | $0.00 | $100,283.42 |
Confirm renewal balance, penalties, discharge fees, compounding, portability and collateral-charge details with your lender, broker or lawyer before signing.
Use the compounding frequency shown in your renewal offer or mortgage commitment. If you choose Not sure, the analyzer uses semi-annual compounding as a disclosed estimate. Variable-rate offers are estimated as if the entered rate stays constant through the selected term.
Signing your current lender's early renewal letter without comparing alternatives costs Canadian borrowers thousands in unnecessary interest. Compare your strategic paths below:
| Renewal Strategy | Best Suited For | Key Benefits | Risks & Friction | Action Items |
|---|---|---|---|---|
| Sign Bank Renewal Letter | Credit-damaged borrowers or those wanting zero paperwork | No requalification, no stress test, instant approval | Bank renewal slips offer 20-50 bps above competitive market broker rates | Never accept first offer; request match with broker quote |
| Switch Lender (Straight Transfer) | Borrowers seeking lower interest rates without changing amortization/loan amount | OSFI exemption: no MQR stress test for uninsured straight switches; lender covers standard transfer fees | Collateral charge discharge fees ($300-$400) or legal fees if not covered | Lock 120-day rate hold with a broker 4 months before maturity |
| Shorten Remaining Amortization | Borrowers with increased income aiming for debt freedom | Saves \$20,000-\$60,000+ in compound lifetime interest; builds equity rapidly | Higher mandatory monthly cash flow requirement | Alternatively keep longer amortization and use 15-20% prepayment privileges |
| Cashback Mortgage Switch | Borrowers needing immediate cash flow to absorb moving or closing costs | Up to 1-2% upfront cash deposited upon closing | Higher contract rate; full cashback clawback if broken early | Verify Net Term Cost in the analyzer above before committing |
FCAC says federally regulated lenders must provide a renewal statement before the end of the term. It should include the balance, rate, payment frequency, term, and charges or fees.
Changing lenders can involve setup, discharge, registration, transfer, assignment, appraisal and administration fees. Ask whether the new lender covers any of them and whether cashback has repayment conditions.
OSFI does not expect federally regulated lenders to apply the prescribed MQR to uninsured straight switches at renewal when the loan amount and amortization do not increase.
Extending amortization can lower the payment, but it can increase interest over time. Review ending balance and interest together.
Verified July 29, 2026. The analyzer is an estimate and is not mortgage advice, lender approval, legal advice or a broker referral. Confirm penalties, fees, prepayment rules, portability and collateral-charge details with your lender, broker or lawyer.