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Fixed vs variable

Assess payment shock between a fixed term and variable paths with prime sensitivity bands.

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Fixed vs variable

Model a fixed renewal offer against variable paths with expected prime changes and shocks.

Calculation notes

Methodology for the fixed vs variable

Quickly compare two mortgage rates side by side — see monthly payment, total interest, and annual dollar difference instantly.

See exactly what a 0.10%, 0.25%, or 0.50% rate difference costs in real dollars over any term and balance.

Use it when your lender sends a renewal offer — within seconds, know whether a competing rate is worth pursuing.

The fastest way to answer every borrower's question: what does this rate difference actually cost me?

Inputs to check

  • Fixed rate and term
  • Variable rate and prime shocks
  • Payment frequency and amortization

Assumptions

  • Uses Canadian semi-annual compounding for all rate comparisons.
  • Assumes constant rates for the compared term; variable rates change actual outcomes.
  • Switching costs are not included — compare gross savings against estimated costs.
  • Payment frequency can be set independently for accurate comparison.

How this calculator works

Quickly compare two mortgage rates side by side — see monthly payment, total interest, and annual dollar difference instantly.

See exactly what a 0.10%, 0.25%, or 0.50% rate difference costs in real dollars over any term and balance.

Use it when your lender sends a renewal offer — within seconds, know whether a competing rate is worth pursuing.

The fastest way to answer every borrower's question: what does this rate difference actually cost me?

Inputs you will need

  • Fixed rate and term
  • Variable rate and prime shocks
  • Payment frequency and amortization

Assumptions and limitations

  • Uses Canadian semi-annual compounding for all rate comparisons.
  • Assumes constant rates for the compared term; variable rates change actual outcomes.
  • Switching costs are not included — compare gross savings against estimated costs.
  • Payment frequency can be set independently for accurate comparison.

Example scenarios

0.25% on $500K

4.50% vs 4.75%: $72/month difference. Over 5 years, $4,320 extra interest. Worth switching at maturity; not worth paying large penalty to break early.

Renewal at 5.25% vs broker at 4.65%

On $350K with 20 years remaining, the 0.60% spread saves $123/month and $7,380 over 5 years. Switching clearly worthwhile at maturity.

0.10% difference — does it matter?

4.40% vs 4.50% on $600K: $32/month. Over 5 years, $1,920. Worth switching at maturity if costs low; not worth paying penalties.

Insured vs uninsured rate premium

Insured: 4.25%. Uninsured: 4.55%. 0.30% premium costs $62/month on $400K. Over 5 years: $3,720 extra. Compare against CMHC premium savings.

Related tools

Use this payment output in the next decision

Payment and amortization scenarios matter most when they connect to a rate, a contract strategy, and a broker-reviewed fallback plan if rates move or priorities change.

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Read the Canada-specific playbook before you commit to the next step.

Execution

Use the broker workflow, rates pages, or secure dashboard to move from estimate to action.

Save and compare scenarios

Create a free account to save scenarios, compare options side by side, and share results with your broker team.

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Frequently asked questions

Is rate-compare the same as rate-comparison?

Rate-compare is a quick two-rate tool for instant evaluation. Rate-comparison supports up to four scenarios with full term, amortization, and frequency customization. Use rate-compare for fast checks and rate-comparison for deeper analysis.

Does it account for Canadian compounding?

Yes. All Canadian mortgages use semi-annual compounding by law, and the tool applies correct conversion regardless of payment frequency. The rate you enter is automatically converted to effective annual rate.

How small a rate difference is worth acting on?

Depends on switching costs. At maturity with no penalty, even 0.15% on $400K saves ~$35/month and $2,100 over 5 years. If switching requires $5K penalty, need ~0.40%+ to break even within 3 years. Compare gross savings against switching costs.