CANADIAN RENEWAL WORKED EXAMPLEWhat can change at renewal?
A fictional $320,000 balance is compared at renewal using a 3.2% current quoted rate and a 5.1% renewal rate, with 20 years of amortization on both sides and a five-year comparison term. Semi-annual compounding is selected for both rates.
How to interpret it
Read the payment change as principal-and-interest under the selected Canadian quoted-rate convention. The balance comparison covers only the entered five-year renewal term; it does not assume the renewal rate lasts until the mortgage is paid off. The example's separate monthly property-tax, insurance, condo/HOA, and other ownership-cost fields are all set to zero in the input table; they are not part of principal and interest.
Limits of this example
- Use the balance and contractual compounding convention from your documents; semi-annual is a model default, not a statement about every lender.
- Payment figures are not total housing costs. Taxes, insurance, fees, lender rounding, irregular dates, and rate changes are excluded.
Possible next steps