Compare Two Mortgages
Your bank made you an offer. Is it actually the best deal? Enter both options and see the real difference — not just the rate, but the total cost.
Not all mortgages are created equal — and the lowest rate isn't always the best mortgage. Prepayment privileges, penalty calculations, portability, and term length all affect the true cost of your mortgage over time. This calculator lets you compare two mortgage options head to head so you can see the full picture, not just the rate.
Enter the details for two different mortgage products — rate, amortisation, payment frequency, and term — and see a complete side-by-side comparison of payments, total interest, and remaining balance at the end of each term. Useful for comparing lender offers, weighing term lengths, or modelling payment frequency options.
🔍 Got two offers and not sure which is actually better?
Run the numbers here, then call Shawn to decode the fine print →
All calculations use Canadian semi-annual compounding. Penalty estimates are not included — prepayment penalties vary significantly by lender and can be a major cost factor. Ask your broker before choosing a lender based on rate alone.
How to Compare Mortgage Offers in Canada
When your mortgage comes up for renewal, your lender will send you an offer — usually a few weeks before the term expires. Most Canadians simply sign it and move on. That's a mistake that can cost you tens of thousands of dollars.
Your Bank's Renewal Offer Is Rarely the Best
Banks know most people will renew without shopping around. Their initial renewal offer is almost always higher than what's available through a mortgage broker. Even a small rate difference — 0.25% to 0.50% — translates to thousands of dollars over a five-year term. On a $400,000 mortgage, a 0.64% rate difference means roughly $150 less per month and over $30,000 less in interest over the full amortization.
What to Compare Beyond the Rate
The interest rate is the headline number, but it's not the whole story. Prepayment privileges vary between lenders — some allow 10% lump sum payments per year, others allow 20%. Some let you increase your payment by 10%, others by 20% or even double-up. If you plan to pay off your mortgage faster, these privileges matter as much as the rate. A slightly higher rate with generous prepayment options can cost less overall than a lower rate with restrictive terms.
Penalty structures also differ significantly. A variable-rate mortgage typically has a three-month interest penalty if you break it early, while a fixed-rate mortgage may carry an interest rate differential (IRD) penalty that can run into tens of thousands. Understanding the penalty structure before you sign could save you a fortune if your circumstances change.
Fixed vs Variable — Which Is Better?
Historically, variable-rate mortgages have cost less than fixed over most five-year periods. But the rate environment changes, and the right choice depends on your risk tolerance, your financial stability, and the current spread between fixed and variable rates. A mortgage broker can show you both scenarios with your actual numbers and help you decide which structure fits your life — not just your budget.
When to Start Shopping
Most lenders allow you to lock in a renewal rate 120 days before your term expires. That means you should start shopping four months before renewal. A mortgage broker can get you pre-approved with multiple lenders, lock in the best rate, and use that as leverage even if you decide to stay with your current lender. There's no cost to the borrower — the lender pays the broker's fee.
Renewing soon? Don't sign your bank's offer without comparing. A 15-minute conversation with a mortgage broker could save you $10,000 or more over your next term. It costs you nothing to ask.
Frequently Asked Questions
Can I switch lenders at renewal without penalty?
Yes. At the end of your term, you can transfer your mortgage to any lender with no penalty. The new lender typically covers the transfer costs. This is one of the best times to shop for a better rate.
Does switching lenders affect my credit score?
A mortgage transfer at renewal has minimal impact on your credit. The new lender may do a credit check, which creates a small, temporary inquiry. The mortgage itself transfers seamlessly with no gap in your payment history.
How much can a broker actually save me compared to my bank?
It varies, but savings of 0.25% to 0.75% off the posted rate are common. On a $400,000 mortgage over a five-year term, that can mean $5,000 to $15,000 in savings. Use the calculator above to plug in your bank's offer alongside a broker rate to see the exact difference.
What if my bank matches the broker's rate?
Great — you win either way. Many clients use a broker's offer as leverage to negotiate with their current lender. Even if you stay with your bank, you'll likely get a better rate than the original renewal offer. The broker's involvement costs you nothing either way.
Is a lower rate always better?
Not necessarily. A slightly higher rate with better prepayment privileges, lower penalties, or a more flexible term structure can save you more in the long run. A mortgage broker looks at the full picture — not just the rate — to find the best overall deal for your situation.
Don't sign your bank's offer until you've compared. Shawn has access to 20+ lenders and 25 years of experience finding better deals. One call. Real savings. No obligation.
📞 Call Shawn — 403-703-6847Serving Calgary, Okotoks, High River & Southern Alberta
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