Fixed vs variable
Assess payment shock between a fixed term and variable paths with prime sensitivity bands.
Interactive calculator
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.
Guides
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.
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.