Variable-rate renewal

Variable-rate mortgage renewal calculator

Quick answer

A variable rate at renewal ties your payment to the Bank of Canada's prime rate. In a cutting cycle, you capture rate drops immediately — no need to wait for your term to end. Model your renewal against today's best variable rate. Today's lowest advertised Canadian mortgage rate is 4.29% (5-year fixed) — refreshed weekly.

Live · Interactive Calculator

Slide, type, or tap any value below — your monthly payment and 5-year savings update instantly.

What you'll owe on renewal day
$
From your renewal letter
%
Live: lowest advertised (5-year fixed), refreshed weekly
%
5 years
25 years
Monthly payment — bank's offer
$2,946.30
Monthly payment — market rate
$2,628.01
You save $318.28/month
Your potential savings over 5 years
$19,097
$3,819 per year at today's market rate
Fairness Score
23/ 100F

Very poor — this offer is well above what's available in the market today.

Compounded semi-annually
Calculated using Canadian mortgage math (OSFI / IRD compliant).
Get a personalized review
Want Jay Klair to look at your actual offer?
Free, no-obligation review from a FSRA-licensed mortgage agent.

Frequently asked

Is a variable rate a good idea at renewal right now?

Variable makes sense when you expect the Bank of Canada to cut faster than the market has priced in. It's a wrong-way bet if rates rise. Historically, variable has beaten 5-year fixed roughly 70% of the time — but the losing 30% can be painful in a hiking cycle.

Adjustable vs variable at renewal — what's the difference?

An adjustable-rate mortgage (ARM) changes your monthly payment when prime moves. A true variable-rate mortgage (VRM) keeps your payment fixed and adjusts how much goes to principal vs interest. In a hiking cycle, a VRM can hit its 'trigger rate' where the payment no longer covers interest.

Can I convert variable to fixed mid-term?

Yes, at any time — usually into a term at least as long as what's left on your original. The conversion rate is set by the lender at the time of conversion, and it's rarely the best rate on the market. Shop before you convert.