Ontario Mortgage Renewal Calculator

Mortgage renewal is the process of extending your mortgage term or changing your mortgage rate after the initial term ends. In Ontario, understanding renewal costs and timing is crucial for managing your home financing. This guide explains what mortgage renewal is, how it works, and when you should consider renewing your mortgage.

What is Mortgage Renewal?

Mortgage renewal refers to the process of extending your mortgage term or changing your mortgage rate after the initial term ends. Most mortgages in Ontario have an initial term of 5 years, after which the mortgage enters a renewal period.

During renewal, you have the option to:

Extend your mortgage term (usually to 5 years)
Change your mortgage rate (fixed or variable)
Switch to a different mortgage product

Renewal typically occurs at the end of the initial term, but some lenders may allow early renewal if certain conditions are met.

How Mortgage Renewal Works

The mortgage renewal process involves several key steps:

Notice Period: Lenders typically provide 30-60 days' notice before renewal.
Rate Lock: You may need to lock in a new rate during the notice period.
Renewal Decision: You can choose to renew, refinance, or switch to a different mortgage product.
Documentation: Submit required documents to your lender.
Approval: Lender approves the renewal and updates your mortgage agreement.

Renewal rates are typically higher than initial rates, especially for variable rate mortgages. Fixed rate mortgages may offer lower renewal rates but still higher than initial rates.

Mortgage Renewal Costs

Renewal costs can vary depending on your lender and mortgage type. Common renewal costs include:

Cost Type	Description	Estimated Cost
Renewal Fee	Fee charged by lender for renewing your mortgage	$500 - $2,000
Appraisal Fee	Cost of having your home appraised	$500 - $1,000
Legal Fees	Costs associated with updating mortgage documents	$500 - $1,500
Brokerage Fee	Fee paid to a mortgage broker if used	1% - 2% of mortgage amount

Total renewal costs can range from $1,500 to $5,000 or more, depending on your situation.

When to Renew Your Mortgage

Consider renewing your mortgage when:

Your current mortgage rate is significantly higher than available renewal rates
You want to lock in a lower rate for the next term
You need to change your mortgage type (e.g., from variable to fixed)
You want to take advantage of special renewal offers from your lender

You may want to avoid renewal if:

Renewal rates are significantly higher than current rates
You're planning to sell your home soon
You want to refinance into a better mortgage product

Ontario Mortgage Renewal Calculator

Use this calculator to estimate your Ontario mortgage renewal costs. Enter your current mortgage details and renewal options to get an estimate of your total renewal costs.

FAQ

How often do mortgages renew in Ontario?

Most mortgages in Ontario renew every 5 years after the initial term. Some lenders may offer shorter renewal periods.

Can I renew my mortgage early?

Early renewal is possible in some cases, but it's not guaranteed. You may need to meet certain conditions or pay additional fees.

What happens if I don't renew my mortgage?

If you don't renew your mortgage, your lender may automatically renew it at higher rates or require you to refinance.