FinanceTrust — Free Tool
Mortgage Renewal Analyzer
Find out what your mortgage penalty really costs — and what you could save by switching lenders at renewal. Built on research across 11 Canadian lenders.
See what Canadians are actually paying
Three real scenarios using today's rates. BoC policy rate: 2.25% · Bank posted rate: 6.09% · Prime: 4.45%
First-time buyer with TD — $300K mortgage
5-year fixed at 4.59% · 2 years into term · Wants to break and refinance
TD Penalty (Posted IRD)
$13,500
Posted rate: 6.09% vs 4.59%
Monoline penalty
$2,300
3 months interest only
Difference
$11,200
Extra cost of Big 6
Switching cost
$1,200
Collateral discharge fee
Click to run full analysis →
Move-up buyer with BMO — $500K mortgage
5-year fixed at 4.49% · 3 years in · Selling to upsize
BMO Penalty (Posted IRD)
$12,000
Posted rate: 6.09% vs 4.49%
Monoline penalty
$3,700
3 months interest only
Difference
$8,300
Extra cost of Big 6
BMO tip
180d
Penalty-free early renewal
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Vancouver condo owner with CIBC — $700K mortgage
5-year fixed at 4.29% · 2 years in · Relocating for work
CIBC Penalty (Posted IRD)
$18,900
Most punitive IRD of Big 6
Monoline penalty
$5,000
3 months interest only
Difference
$13,900
CIBC's posted rate premium
Switching cost
$1,500
Collateral discharge fee
Click to run full analysis →
Why Big 6 penalties are so high
The Big 6 banks use a posted rate of 6.09% to calculate your Interest Rate Differential (IRD) penalty — even though nobody actually pays that rate. Your real rate is 4.29–4.59%. That 1.5–1.8% gap is pure profit for the bank when you break your mortgage. Monoline lenders use your actual contract rate for IRD, which is why their penalties are 60–75% lower.
Fixed vs Variable — The risk tradeoff
Fixed rate (4.29–4.59%): Predictable payments, but locked in. If rates drop further, you can't benefit without paying the IRD penalty above. Best when: you need payment certainty, or rates are near their floor.
Variable rate (~3.40%, prime minus ~1.05%): Lower rate today, but fluctuates with BoC decisions. Penalty is always just 3 months' interest (~$2,500 on $300K) — no IRD trap. Best when: BoC is cutting or holding, and you can handle payment swings.
BoC held at 2.25% on March 18, 2026. Next decision: April 29, 2026. Inflation at 1.8% but energy prices rising.
Check your renewal offer
Got a renewal letter from your bank? Enter the rate they offered and see what you're leaving on the table.
What this tool shows you
Penalty Estimate
What it costs to break your mortgage early — posted-rate vs fair IRD
Switching Cost
Collateral vs conventional charge — the hidden renewal tax
Savings Comparison
What you'd save with a monoline lender vs Big 6 bank
Action Plan
Personalized tips based on your lender and situation
This tool is free because Canadians deserve to understand their mortgage costs. Built on research across all 11 major Canadian lenders.
Read the full Mortgage Decoder guide