Skip to main content
Mortgage Squad Advisors
Vaughan, Ontario · FSRA #13737

Mortgage Payment
Shock Calculator —
know your renewal.

See exactly how much your monthly payment changes at renewal and explore every option to soften the increase before you sign.

Read the renewal guide
  • FSRA licensed #13737
  • 100+ lender partners
  • 4.9 ★ Google rating (256 reviews)
  • 15,000+ Canadians helped

Payment shock calculator: what will your payment be at renewal?

Fact-checked by Surrayya Afzal, Principal Broker, FSRA #M14001433·Last reviewed October 2026
The short answer

If your low rate is ending, your payment can jump at renewal. See how much it changes, and what can soften it: a longer amortization, prepaying now, or shopping lenders.

Your numbers

$480k
1.99%
4.14%
20 yrs

Old payment is estimated; enter your actual payment for an exact comparison. Default renewal rate is an illustrative assumption, not a quote.

Your payment goes UP by
$511
+21.1% per month · $6,134/year
Old vs. new payment
Current monthly payment$2,424
New monthly payment$2,935
Monthly difference+$511
Annual difference+$6,134

Old payment vs. renewal payment

Same balance and amortization — only the rate resets.

Old payment · 1.99%$2,424/mo
New payment · 4.14%$2,935/mo
Payment shock: +$511/month · $6,134/year more (+21.1%).

Lifetime cost at the renewal rate

Total interest vs. principal over 20 years at 4.14%

Total cost
$704,464
Principal$480,000 (68%)
Interest$224,464 (32%)
Like your number? Let’s make it real.
No credit check to start. One advisor compares 100+ lenders for you.

Mortgage Squad Advisors · FSRA #13737 · Licensed in Ontario only.

Get pre-approved
(905) 553-8550
Save these numbers as a PDF.

Your inputs and results in one page you can keep.

Read the full explanationThe rules behind the numbers, with worked examples.

Renewing off a pandemic-era rate

In 2020 and 2021, many five-year fixed rates fell to around 2% or lower and a wave of Canadians locked in. Those terms have been maturing into a higher-rate market (see today’s rates on our live board), so on the same balance the renewal payment can reset sharply higher: Bank of Canada staff estimate five-year fixed holders renewing in 2026 face average payment increases of about 20% (Staff Analytical Note 2025-21).. The Bank of Canada estimated that about 60% of mortgages renewing in 2025 or 2026 would see higher payments (Bank of Canada). That’s the payment shock: not a penalty or a mistake, just the rate environment resetting.

You have more levers than the renewal letter suggests

The bank’s renewal offer is built to bank on inertia. Before you sign, shop the whole market — switching lenders at renewal is usually penalty-free, and broker-channel rates often beat the bank’s first offer. If the new payment still stretches the budget, extending amortization spreads the balance over more years to soften the monthly hit (at the cost of more lifetime interest, as the donut above shows). Benchmark first against today’s renewal rates.

The earlier you start, the more options you keep. Many lenders will hold a renewal or switch rate for up to about 120 days before maturity (lender policy, not a federal rule; federally regulated lenders must send your renewal statement at least 21 days before maturity, per the FCAC). Read the wider playbook in our renewal guide. When the time comes, the renewal calculator will pit your bank’s number against the market side by side.

How to use this calculator
  1. Enter your mortgage detailsAdd your balance at renewal, your current (old) rate, and remaining amortization — takes about 30 seconds.
  2. Enter the renewal rateUse today's market rate or the offer your lender sent. The calculator shows exactly how much your monthly payment changes.
  3. Explore your optionsCompare renewal offers, model an extended amortization, or let us shop the market for a better rate before you sign.
How this is calculated
Principal + interest only. Extending amortization lowers the payment but raises lifetime interest. A transfer/switch at renewal usually carries no prepayment penalty, though discharge, appraisal or legal fees may apply; many lenders cover them. Extending amortization usually requires requalification, including the stress test, and insurer limits apply. We model every option before your maturity date. O.A.C.
FAQ

Common questions

Don’t see yours? Ask Maya.

What is payment shock at renewal?
It's the jump in your monthly payment when you renew from a much lower rate to today's rate. For example, a $500,000 mortgage at 1.99% over 25 years that renews after five years at an assumed 4.39% (illustrative, not a quote) rises from about $2,115 to $2,616 a month, roughly 24%. The Bank of Canada estimated that about 60% of mortgages renewing in 2025-2026 would face higher payments (Bank of Canada). The before/after bars above show your exact increase.
Why is my mortgage payment jumping so much in 2026?
Through 2020-2021, many five-year fixed rates fell to around 2% or lower. Those terms have been maturing into a higher-rate market (see today’s numbers on our live rate board), so the renewal payment resets higher on the same balance. It isn't a penalty or an error — it's the rate environment normalizing. See the wider picture in our renewal guide.
How can I reduce my renewal payment shock?
Options: shop the whole market (don't auto-renew — your bank's first offer isn't always its best), extend amortization to lower the payment, switch to a lender with a lower rate (a transfer often has no penalty), or blend. Benchmark against today's renewal rates first.
Should I switch lenders at renewal?
Often yes. Broker-channel rates often beat a bank's first renewal offer. A straight transfer/switch at renewal usually has no penalty and a straight switch (same balance, same amortization) doesn't require the stress test. Compare offers in the renewal calculator.
Does extending my amortization actually help?
It lowers the monthly payment by spreading the balance over more years, which can absorb a chunk of the shock — but it raises total lifetime interest, as the donut above shows. It's a useful cashflow lever, not free money. We model the trade-off before recommending it.
When should I start my renewal?
About four months (roughly 120 days) before maturity. That's a common lender rate-hold window (lender policy, not a federal rule), so you can lock a rate while you shop. Federally regulated lenders only have to send your renewal statement at least 21 days before maturity (FCAC), so don't wait for it. Set a reminder or we'll track it for you.
Why is my mortgage payment increasing so much at renewal in 2026?
Many Canadians locked five-year fixed rates near 2% in 2020–2021. Those terms are now maturing into a higher-rate environment. The Bank of Canada estimated that about 60% of mortgages renewing in 2025–2026 would face higher payments. It isn't a penalty — it's the rate environment normalizing.
Can I reduce the payment shock by extending my amortization?
Yes. Extending from 20 years to 25 or 30 years lowers your monthly payment by spreading the balance over more time. However, it increases total lifetime interest paid. We model this trade-off for every client so you choose with the full picture — not just the lower payment.
How early should I start shopping my renewal?
About four months (roughly 120 days) before your maturity date. That is a common rate-hold window (lender policy, not a federal rule). Federally regulated lenders only have to send your renewal statement 21 days before maturity — so don't wait for the letter. The earlier you start, the more options you keep.
Does Mortgage Squad charge a fee to help with my renewal?
$0 to you on standard A-lender renewals and switches. The lender pays us a finder fee at closing, disclosed in writing on every file. You get the full benefit of market comparison with no out-of-pocket cost.
Words to know
AmortizationTerm vs. amortizationPenalty (IRD)
Related calculators & guides
Renewal comparisonToday's renewal ratesRenewal guideSet a renewal reminder
See today’s rates behind these numbers: the Canadian Lending Snapshot

Want a real rate for these numbers?

Bring us a written offer from a big bank. We’ll try to beat it. If we can’t, we pay you $500. Conditions apply. See the conditions

Get pre-approved

Mortgage calculators by city

Use the payment shock calculator alongside our local rate data to understand your renewal position in your market.

Toronto mortgage calculator Vaughan mortgage calculator Mississauga mortgage calculator Burlington mortgage calculator Scarborough mortgage calculator Oakville mortgage calculator Barrie mortgage calculator Hamilton mortgage calculator Richmond Hill mortgage calculator Brampton mortgage calculator Markham mortgage calculator London mortgage calculator Ottawa mortgage calculator Newmarket mortgage calculator Etobicoke mortgage calculator Ajax mortgage calculator Whitby mortgage calculator Oshawa mortgage calculator Barrhaven mortgage calculator Pickering mortgage calculator