Mortgage Renewal Calculator
The renewal calculator shows 3 things before you sign a renewal: what your payment becomes when your rate resets, how much of your home's equity a lender could let you use, and whether moving other debts into the mortgage lowers what your household pays each month. You need your mortgage statement and a rough idea of what your home is worth.
What does the mortgage renewal calculator show?
It shows your monthly payment today beside your payment at a current renewal rate on the same balance and the same remaining amortization, in dollars and as a percentage. Flow keeps that renewal rate current in the tool.
From there it adds 3 more views:
- How much equity you could access, up to 80% of your home's value
- What your other debts cost you each month now, compared with the same debts added to the mortgage
- What the payment would be if the amortization went out to 30 years
It also counts the days to your maturity date, because that number decides how many options you still have.
What information do you need for the renewal calculator?
You need 6 numbers from your mortgage statement and your finances, and your other debts if you have any.
- Current mortgage balance
- Current interest rate
- Maturity date (when your term ends)
- Years left on your amortization
- What your home is worth today, a rough figure is fine
- Household gross yearly income and your credit score range
- Balances on credit cards, a line of credit, a car loan (and its monthly payment), and any other debt
How does the calculator work out your payment at renewal?
It keeps your balance and remaining amortization the same and changes only the rate. Both payments use half-yearly compounding, the way Canadian fixed-rate mortgages are written, so the gap it shows is the rate change alone.
That's the comparison a renewal letter gives you. If your rate was set a few years ago, the gap can be large, and seeing it in dollars early gives you time to decide what to do.
How much home equity can you access at renewal?
Most lenders will lend up to 80% of your home's value through a refinance. Your available equity is that 80% figure minus what you still owe.
- Home value: $950,000
- 80% of value: $760,000
- Minus mortgage balance: $500,000
- Equity you could access: $260,000
The home's value comes from the lender's appraisal, so your real number moves with it.
Does rolling debt into your mortgage at renewal lower your payments?
It often lowers the monthly total, because credit card and car loan payments are high for their balance. The calculator estimates your credit card payment at 2.5% of the balance a month, your line of credit as interest only, and your car payment as you enter it, then compares that total with the same debts added to the mortgage.
Adding debt or stretching the amortization is a refinance, so you qualify again with income, credit and an appraisal. And a debt spread over 25 or 30 years costs more interest in total than paying it down in 3, so the savings hold only if the cards stay paid off.
| What you change at renewal | What it counts as | Do you qualify again? |
|---|---|---|
| Nothing, you renew or switch lenders with the same balance and amortization | Renewal or straight switch | No stress test on a straight switch to a new lender since November 21, 2024, though the new lender still reviews you |
| Add other debt to the mortgage | Refinance | Yes, including the stress test |
| Extend the amortization | Refinance at most lenders | Yes, including the stress test |
How do you compare the result with your lender's renewal offer?
Put the payment from your lender's letter beside the renewal payment the calculator shows for the same balance and amortization. If the letter's payment is higher, the letter's rate is higher than the rate in the calculator, and that's worth asking about before you sign.
Then look past the rate: the term length, the prepayment limits, and how the penalty is worked out if you break early. Many lenders will hold a rate for up to 120 days before maturity, so starting 4 months out gives you room to compare. The SMART assessment takes your result into a full renewal plan, and the renewal guide walks through each choice.
Frequently asked questions
Does the calculator use my lender's renewal rate?
- No. It uses a current renewal rate that Flow keeps up to date, so you can compare it with the payment in your lender's letter. A higher payment on the letter for the same balance and amortization means the letter's rate is higher.
Do I have to pass the stress test to renew my mortgage?
- You don't need the stress test to renew with your current lender. Since November 21, 2024, an uninsured mortgage switching to a new lender at renewal with the same balance and amortization doesn't need the stress test either. Adding money or extending the amortization is a refinance, and that does.
Can I extend my amortization at renewal?
- At most lenders, lengthening the amortization counts as a refinance. You qualify again, the loan is capped at 80% of your home's value, and the lower payment comes with more interest over the life of the mortgage.
When should I run the renewal calculator?
- About 120 days before your maturity date. Many lenders will hold a rate for up to 120 days, and that window gives you time to compare offers, gather documents and switch if the numbers favour it.
Is rolling credit card debt into my mortgage a good idea?
- It can cut your monthly payments, since card payments are high for their balance. It only works if the cards stay paid off afterward, because the same debt spread over 25 or 30 years costs more in total interest.