Rate comparison (true cost)
Compare nominal vs. true cost and prove whether cashback makes an offer fair.
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Interactive calculator
Mortgage rate comparison
Calculate payment differences, nominal vs. true cost, and validate cashback offers using compliant present-value math.
Calculation notes
Methodology for the mortgage rate comparison
Compare up to four mortgage rate scenarios side by side — different rates, terms, lenders, and payment frequencies — in a single view.
See monthly payments, total interest over the term, remaining balance at renewal, and total cost for each scenario.
Evaluate lender offers objectively — the lowest rate is not always best when penalty formulas, prepayment privileges, and portability differ.
Export comparisons to share with your broker or use as leverage when negotiating renewal terms.
Inputs to check
- Rate options and terms
- Cashback amounts
- Upfront fees and incentives
Assumptions
- All scenarios use Canadian semi-annual compounding regardless of payment frequency.
- Rates assumed constant for the modeled term; variable rates change actual outcomes.
- Non-rate factors (penalty formula, prepayment, portability, collateral charge) are not modeled.
- Cash-back and incentive offers should be considered separately.
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How this calculator works
Compare up to four mortgage rate scenarios side by side — different rates, terms, lenders, and payment frequencies — in a single view.
See monthly payments, total interest over the term, remaining balance at renewal, and total cost for each scenario.
Evaluate lender offers objectively — the lowest rate is not always best when penalty formulas, prepayment privileges, and portability differ.
Export comparisons to share with your broker or use as leverage when negotiating renewal terms.
Inputs you will need
- Rate options and terms
- Cashback amounts
- Upfront fees and incentives
Assumptions and limitations
- All scenarios use Canadian semi-annual compounding regardless of payment frequency.
- Rates assumed constant for the modeled term; variable rates change actual outcomes.
- Non-rate factors (penalty formula, prepayment, portability, collateral charge) are not modeled.
- Cash-back and incentive offers should be considered separately.
Example scenarios
Lender A vs Lender B
Lender A: 4.50% fixed, standard charge, 20% prepayment. Lender B: 4.35% fixed, collateral charge, 15% prepayment. Lender B saves $32/month but collateral charge may limit future switching.
Fixed vs variable scenario
5-year fixed at 4.50% vs variable at prime minus 0.80% (4.65%). Fixed saves $29/month at current rates. If prime drops 0.50%, variable becomes cheaper by $86/month — break-even rate drop is 0.17%.
3-year vs 5-year term
3-year fixed at 4.25% vs 5-year fixed at 4.50%. 3-year saves $57/month for 36 months but exposes you to renewal rate risk in years 4-5.
Insured vs uninsured rate spread
Insured: 4.25%. Uninsured: 4.55%. On $400K, insured saves $70/month — but CMHC premium of $12,400 (10% down) takes ~14.8 years of savings to recover.
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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.
Save and compare scenarios
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Frequently asked questions
How many scenarios can I compare?
Up to four side by side — enough to compare your current renewal offer, one or two alternative offers, and a different term or rate type. Each scenario can have different rates, terms, amortizations, and frequencies.
Does this include penalty analysis?
This calculator focuses on rate, payment, and interest comparison. For penalty-specific analysis, use the Refinance Analyzer or Penalty Estimator. For prepayment impact, use the Prepayment Impact calculator.
Should I always choose the lowest rate?
No. The lowest rate often comes with trade-offs: collateral charge (harder to switch), restricted prepayment, no portability, or posted-rate IRD creating larger penalties. A rate 0.10-0.20% higher with standard terms can be the better long-term choice.
How do I account for cash-back offers?
Cash-back effectively reduces your net cost. A lender offering 4.75% with $3K cash-back on $400K has an effective rate ~0.15% lower over 5 years than the headline suggests. Add cash-back as a negative fee.