Reference table
Canadian mortgage renewal payment shock (2026)
A 2021 5-year fixed at 1.99% that renews at 4.29% with $400,000 remaining and 25 years left sees monthly P&I move from $1,692 to $2,167 — $476 more (28%). Same remaining amortization of 20 years: $2,020 to $2,477. Those rates are labelled assumptions, not your lender’s quote.
Rules verified: 2026-07-13 · Methodology
Assumptions
- 1.99% labelled 2021 5-year fixed cohort example — not every 2021 mortgage
- 4.29% planning assumption, 12 September 2026 (calculator default; not a quoted lender rate)
- Canadian semi-annual compounding (standard fixed-rate practice)
- P&I only — property tax, heat, and insurance are not in these columns
- Tables generated 2026-09-12
Remaining amortization held at 20 or 25 years
| Balance | Old P&I (20y) | New P&I (20y) | Increase | % | Old P&I (25y) | New P&I (25y) | Increase | % |
|---|---|---|---|---|---|---|---|---|
| $300,000 | $1,515 | $1,858 | $343 | 23% | $1,269 | $1,626 | $357 | 28% |
| $400,000 | $2,020 | $2,477 | $457 | 23% | $1,692 | $2,167 | $476 | 28% |
| $500,000 | $2,525 | $3,097 | $572 | 23% | $2,115 | $2,709 | $594 | 28% |
| $600,000 | $3,030 | $3,716 | $686 | 23% | $2,538 | $3,251 | $713 | 28% |
| $700,000 | $3,535 | $4,335 | $800 | 23% | $2,961 | $3,793 | $832 | 28% |
| $800,000 | $4,040 | $4,955 | $915 | 23% | $3,384 | $4,335 | $951 | 28% |
If amortization resets to 25 years at renewal
Compared with keeping a 20-year remaining amortization at the new rate. The lower payment buys extra interest over the life of the loan.
| Balance | Keep 20 years left | Reset to 25 years | Monthly relief |
|---|---|---|---|
| $300,000 | $1,858 | $1,626 | $232 |
| $400,000 | $2,477 | $2,167 | $310 |
| $500,000 | $3,097 | $2,709 | $387 |
| $600,000 | $3,716 | $3,251 | $465 |
| $700,000 | $4,335 | $3,793 | $542 |
| $800,000 | $4,955 | $4,335 | $620 |
Caveats
- Not every 2021 mortgage was 1.99%.
- Federally regulated lenders aren't expected to re-apply the mortgage stress test when you renew with your current lender, though each lender decides how much review a renewal gets.
- Switching still needs approval; some straight switches may skip the stress test, depending on the lender and the mortgage.
- Figures are P&I only.
See the methodology for the payment formula. Related: getting the best renewal deal, scripts, straight switches.
Payment calculator — renewal mode
Enter your remaining balance, remaining amortization, and the rate on the letter.
Open the live calculator with these numbersRenewal playbook
120-day window, straight switches, and what not to sign.
Open the live calculator with these numbersFrequently asked questions
How much does a 2021 1.99% mortgage payment jump at 4.29%?
It depends on remaining balance and remaining amortization. The tables on this page are P&I only, from the same payment engine as the calculator, using labelled 1.99% (2021 cohort example) and 4.29% (12 September 2026 planning assumption).
Does a same-lender renewal re-trigger the stress test?
Federally regulated lenders aren't expected to re-test same-lender renewals under the stress test. Since 21 November 2024, a stand-alone uninsured straight switch from one federally regulated lender to another, with no increase in the loan amount or remaining amortization, no longer has to use the set qualifying rate, though the new lender still assesses whether you can afford the payments. Increasing the loan or extending amortization is treated differently: the lender may apply the set qualifying rate, depending on the lender and the mortgage.
Should I reset amortization to 25 years at renewal?
Resetting to 25 years lowers the new P&I and raises total interest. The second table shows the monthly difference versus keeping a 20-year remaining amortization. It is a tradeoff, not a free lunch.
Educational only — not a licensed brokerage and not advice. Disclaimer · How we're paid.