Estimate the real cost of accepting a Canadian mortgage renewal offer by comparing the lender’s rate, a competing benchmark rate, switching costs, and the break-even point before you sign.
Already received a renewal offer from your lender?
Check the rate against current Canadian mortgage benchmarks before you sign. FairRate is paid by you, not by lenders, and does not sell your information to brokers.
Most borrowers compare only after they have already signed. Free check first; paid report options after the check: Rate Fairness Report CA$24 · Full Renewal Decision Report CA$49. No broker calls. No data sold.
A useful mortgage renewal calculator should not only show a new monthly payment. It should show the dollar cost of the rate gap, the likely break-even after switching costs, and whether the offer gives you enough reason to negotiate.
Start with your mortgage balance, your lender’s renewal rate, the best comparable rate you can document, and the term length. The annual rate-gap estimate is:
Mortgage balance × rate gap = approximate annual interest difference.
Example: a $450,000 balance with a 0.50% rate gap is roughly $2,250 per year before amortization effects. Over a 5-year term, that gap can be large enough to justify a stronger negotiation or a proper switching-cost review.
For a personalized benchmark check, use the FairRate Canada checker and save the result before replying to your lender.
| Mortgage balance | Rate gap | Approx. annual gap | Why it matters |
|---|---|---|---|
| $300,000 | 0.25% | $750 | Often worth asking the lender to match if fees are low. |
| $450,000 | 0.50% | $2,250 | Large enough to compare competing offers and switching costs. |
| $650,000 | 0.75% | $4,875 | High-priority negotiation signal before accepting the renewal letter. |
Enter your offer and see whether it looks above or inside the current benchmark range.
What to check before accepting a lender renewal letter.
Why collateral charge mortgages may create extra switching friction.
Plain-English guide to straight switches and qualification friction.
Compare your lender’s offered rate with a current Canadian benchmark, then convert the gap into monthly payment difference, interest over the term, and switching-cost break-even. A small rate gap can still be expensive on a large balance.
Yes. A lower rate can be worth switching for, but the decision should include discharge, registration, appraisal, legal, transfer, and administration costs where they apply.
FairRate is an independent consumer-paid renewal rate-checking report, not a lender or broker. It helps you understand whether the rate you were offered looks competitive before you negotiate, renew, or shop elsewhere.
Any gap can be worth asking about, but gaps of 0.25% to 0.50% become meaningful when the balance is large or the term is long. The right question is not only the percentage gap; it is the dollar cost over your term.