Mortgage Rate Comparison Calculator
Your bank offers 4.89%. A broker offers 4.19% with $550 in legal costs. A 3-year fixed at 3.99% is also on the table. Run all four scenarios side by side — ranked by true cost over the term.
Mortgage Rate Comparison Calculator
Compare up to 4 scenarios side by side with upfront costs factored in.
| Rank | Scenario | Monthly | End-of-Term Balance | Interest + Upfront | vs. Winner |
|---|---|---|---|---|---|
| 1 ⭐ | Scenario C — 3-yr fixed (3.99%, 3yr) | $2,627 | $462,661 | $57,797 | winner |
| 2 | Scenario B — Broker switch (4.19%, 5yr) | $2,682 | $436,699 | $98,160 | +$40,363 |
| 3 | Scenario D — Variable (4.59%, 5yr) | $2,792 | $439,633 | $107,730 | +$49,932 |
| 4 | Scenario A — Bank renewal offer (4.89%, 5yr) | $2,877 | $441,769 | $114,376 | +$56,579 |
Scenario C — 3-yr fixed is your cheapest option at $57,797 over the term. A broker can verify the offer and negotiate lower upfront costs.
A broker will confirm this with real lender quotes — for free.
How to Compare Canadian Mortgage Rates Accurately
Comparing mortgage rates is more complex than "which number is lowest." Three variables drive the true cost:
- Interest rate — obvious, but only one piece of the puzzle
- Term length — a lower 3-year rate vs a higher 5-year rate creates renewal risk
- Upfront costs — penalty, legal, appraisal, discharge, and title insurance
Our calculator combines all three. For each scenario, it computes the monthly payment (at the stated rate), the balance at the end of the term (how much equity you've built), and the true cost = (monthly × term months) + upfront costs − equity built. The cheapest true-cost scenario wins, regardless of headline rate.
Watch out for: lenders that offer a low rate with a 5-year closed / no-switch clause, "enhanced IRD" prepayment formulas that trap you, bundled HELOCs that require re-qualification, and mortgage insurance stacking that changes your effective cost.
Big 6 Banks vs Monolines vs Credit Unions in 2026
Big 6 Banks (TD, RBC, BMO, Scotiabank, CIBC, National Bank) — Best renewal rates for existing customers (often offered only after negotiation), bundled products, branch network. Watch for posted-rate IRD penalties on break.
Monoline Lenders (First National, MCAP, Strive, RFA, CMLS, Equitable Bank) — Typically the lowest broker-channel rates; fair 3-month interest penalties; standard-charge mortgages (easier to leave). Work only through mortgage brokers.
Credit Unions (Meridian, Coast Capital, Vancity, Desjardins, Alterna, etc.) — Provincially regulated, often exempt from OSFI stress test, flexible ratios. Rates often match or beat banks. Must be a member to borrow.
When to Use This Calculator
- Renewal shopping — drop in your lender's offer + 3 broker quotes and see which wins
- New purchase — compare bank, monoline, and credit union offers after pre-approval
- Mid-term switch — include the penalty as an upfront cost to see if switching pays off
- Fixed vs variable — model both as separate scenarios using today's projected variable rate
- Short vs long term — compare 3-year, 5-year, 7-year fixed to see which rides the rate cycle best
Caveats
The calculator assumes you hold each scenario to the end of its term. If you break early, add the break penalty. The end-of-term balance assumes constant-rate amortization; your real balance will match the lender's amortization schedule down to a few cents. Scenarios with different terms are rigourously comparable only up to the shortest term — after that, you're estimating renewal rates. For multi-cycle forecasting, speak to a broker who can model rate assumptions.
Frequently Asked Questions
Should I pick a 3-year or 5-year fixed-rate mortgage in 2026? +
It depends on your rate-cycle view. A 3-year fixed is typically 20–30 basis points lower than a 5-year fixed, so it's cheaper today — but if rates rise by your renewal, you could lose the savings and more. With the Bank of Canada policy rate at its current 2026 level, brokers are split. If you believe rates will keep falling, take the 3-year. If you want certainty, the 5-year locks in peace of mind.
What's the real cost difference between a bank and a monoline? +
Posted rates are similar between Big 6 banks and monolines at renewal, but monolines usually beat banks by 10–40 bps on best discretionary rates, and they use fair 3-month interest penalties instead of posted-rate IRD. Over a 5-year term, that's typically a $3,000–$12,000 advantage for monolines on a $500k mortgage, factoring in the lower penalty risk.
Are upfront costs deductible from my true cost? +
For investment properties, yes — appraisal, legal, and discharge fees are deductible as financing expenses. For principal residences, no. This calculator shows you the true cost over the term (payments + upfront costs) regardless of tax treatment, so you can rank scenarios on economics alone. Consult a CPA for tax-specific strategies.
What's the 120-day rate hold rule? +
Canadian lenders can hold a rate for 120 days from application approval, meaning once you're approved at 4.19%, you have 120 days to close at that rate even if market rates rise. At renewal, most lenders let you lock in the renewal rate up to 120 days before your maturity date. Start shopping 4+ months before renewal to maximise rate-hold leverage.
How do cash-back offers change the calculation? +
Big 6 banks sometimes advertise 'cash-back' at renewal — e.g., $3,000 cash on a $500k mortgage at a slightly higher rate. Subtract the cash-back from your upfront costs (effectively negative costs). But: cash-back is typically clawed back if you break the mortgage mid-term, and the rate surcharge (often 15–30 bps) outweighs the cash over 5 years. Usually not worth it.
Related Guides
Best Mortgage Renewal Rates
Current best renewal rates — fixed and variable — across Canada.
Current Mortgage Rates
Today's Canadian mortgage rates across major lenders.
Mortgage Term Lengths Explained
1-year through 10-year fixed/variable terms compared for renewals.
Fixed vs. Variable at Renewal
Choosing between fixed and variable in today's rate environment.
All Renewal Calculators
Payment, stress test, switch break-even, prepayment — all in one place.
Switch vs. Stay Calculator
Compare staying with your lender vs. switching, net of fees.
Want Real Lender Quotes to Compare?
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