Mortgage Renewal Calculator Ontario

Renewing your mortgage in Ontario can save you money, but it's important to understand the costs and options available. Our mortgage renewal calculator helps you estimate your renewal costs and compare different renewal options.

How Mortgage Renewal Works in Ontario

When your mortgage term ends, you have several options for continuing your mortgage. The most common options are:

Renewal: Extending your mortgage at the same interest rate
Refinance: Getting a new mortgage with different terms
Renewal with refinancing: Extending your mortgage but changing some terms

Renewal Process

The renewal process typically involves:

Notifying your lender that you want to renew
Providing updated financial information
Agreeing to new terms (interest rate, fees, etc.)
Signing new mortgage documents

Renewal Costs

Renewal costs can include:

Renewal fee (typically 1-2% of the mortgage amount)
Appraisal fee
Legal fees
Property tax assessment

Renewing your mortgage is generally less expensive than refinancing, but you'll be locked into the same interest rate for another term.

Factors Affecting Renewal Costs

Several factors influence how much you'll pay to renew your mortgage:

1. Current Interest Rate

The interest rate you're currently paying will determine your renewal rate. If rates have risen since your last renewal, you may pay more.

2. Property Value

A recent appraisal will determine your mortgage amount. If your property value has increased, you'll have more equity.

3. Credit Score

Your credit score affects your eligibility for renewal and the interest rate you can secure.

4. Loan-to-Value Ratio

Your LTV ratio (mortgage amount divided by property value) affects your renewal options and potential interest rates.

5. Mortgage Type

Different mortgage types have different renewal requirements and costs. Common types include fixed-rate, variable-rate, and open mortgages.

Renewal Options Comparison

Compare the key differences between renewal options:

Option	Interest Rate	Fees	Flexibility	Best For
Renewal	Same as current rate	Renewal fee (1-2%)	Low	Homeowners who want to avoid rate changes
Refinance	New rate (may be lower)	Closing costs (2-5%)	High	Homeowners who want to lower payments
Renewal with Refinancing	New rate (may be lower)	Renewal fee + closing costs	Medium	Homeowners who want to change terms partially

Renewal Cost = (Mortgage Amount × Renewal Fee Rate) + Other Fees

Frequently Asked Questions

How often should I renew my mortgage?: Most mortgages in Ontario renew every 5 years, but some have shorter or longer terms. Check your mortgage agreement for the exact renewal date.
Can I renew my mortgage online?: Many lenders offer online renewal options, but some may require in-person visits or additional documentation. Check with your lender for their specific process.
What happens if I don't renew my mortgage?: If you don't renew, your mortgage will expire, and you'll need to refinance or sell your home. This can be costly and may result in higher interest rates.
Are there any tax implications for mortgage renewal?: Renewal fees are typically not tax-deductible, but some lenders may offer tax benefits for certain mortgage types. Consult a tax professional for advice.
Can I renew my mortgage if I'm behind on payments?: Most lenders require you to be current on payments before renewing. If you're behind, you may need to catch up first or consider refinancing options.