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Don't auto-sign your bank's renewal letter. Grade your lender's offer in 10 seconds, see your exact 5-year interest penalty, and find out if an independent broker can beat it.
Use a written quote from a broker or another lender for the same term. Your offer is graded against this rate.
A grade only means something next to a real alternative. Type the best rate you have been quoted elsewhere, and we will show how much extra interest your renewal letter would cost over the term.
Bank renewal slips typically arrive at 0.20% to 0.60% above wholesale pricing. Check independent A-lenders, monoline lenders, and regional credit unions to compare terms without branch sales pressure.
Standard branch letters rely on renewal inertia. Most borrowers sign without shopping and lock in inflated posted spreads.
Access institutional wholesale rates, full 120-day rate holds, and lenders that cover switch discharge and appraisal fees.
Shop wholesale 3-year and 5-year fixed mortgage rates from accredited Canadian brokers.
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.
Our diagnostic applies deterministic statutory compounding rules and official regulatory switch exemptions under Canadian federal supervision.
Under federal law (Interest Act, R.S.C., 1985, c. I-15, s. 6), Canadian fixed-rate mortgages cannot compound monthly. They must compound semi-annually, not in advance.
This statutory periodic conversion ensures payment comparisons match Bank of Canada schedules rather than standard US monthly compounding formulas.
Borrowers are not trapped with their current lender. Under OSFI Guideline B-20 rules, uninsured mortgage transfers to another federally regulated lender (straight switch) do not require re-qualifying under the Minimum Qualifying Rate (stress test), provided loan amount and amortization remain unchanged.
Secure an independent broker 120-day rate hold. If bond yields rise, your rate is locked; if yields fall, you capture the lower rate.
Banks often mail renewal notices 3 to 6 months early at 0.30%–0.60% above competitive spreads. Never auto-sign via mobile banking.
Contact your bank's client retention desk with your competing quote and ask for their bottom-line match to avoid discharge.
If the bank matches within 5–10 bps, renew directly. If not, switch lenders under OSFI straight-switch rules without stress testing.
Official payment shock projections based on Bank of Canada Financial System Review data for 2020–2021 vintages renewing into current market yields.
| Original Vintage | Original Rate | Renewal Rate Est. | $500k Monthly Shock | $750k Monthly Shock | Recommended Borrower Action |
|---|---|---|---|---|---|
| 2021 5-Yr Fixed (Record Low) | 1.79% – 1.99% | 4.39% – 4.79% | +$672 /mo (+32%) | +$1,008 /mo (+32%) | Request 120-day broker rate hold; compare 3-yr fixed vs 5-yr fixed to bridge cycle. |
| 2020 5-Yr Fixed | 2.14% – 2.39% | 4.39% – 4.69% | +$548 /mo (+25%) | +$822 /mo (+25%) | Straight switch under OSFI B-20 rules without re-qualifying stress test. |
| 2021 5-Yr Variable (Adjustable) | 1.45% (Peak 5.95%) | 4.49% (Fixed Switch) | -$410 /mo (-14% Relief) | -$615 /mo (-14% Relief) | Borrowers who absorbed peak rate hikes can lock in payment cuts by renewing to fixed. |
| 2023 3-Yr Fixed (Peak Cycle) | 5.69% – 6.19% | 4.29% – 4.49% | -$385 /mo (-12% Relief) | -$578 /mo (-12% Relief) | Aggressively negotiate lender retention letter; shop across competitive monolines. |
Use our companion Mortgage Renewal Offer Analyzer to model discharge fees, title transfer costs, and cashback incentives across up to 3 competitive quotes.
This diagnostic tool is an educational financial modeling calculator developed by usecos.app. usecos.app is not a chartered bank, licensed mortgage brokerage, or regulatory body. It applies Canadian statutory formulas deterministically to user inputs.
Official regulatory rules: Interest Act (Federal) • OSFI (Federal Banking Supervisor) • FCAC (Consumer Protection).