Mortgage Rate Comparison Calculator
The lowest rate is not always the cheapest mortgage. Compare two offers side by side, including fees, and see what each one costs over the term you will actually sign for.
Use the length of your mortgage term. Most fixed rates in Canada compound semi annually. Variable and many private mortgages compound monthly.
Over 5 years
| Over the comparison period | Offer A | Offer B | Difference |
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Most comparison tools assume your rate stays the same for 25 years. It does not. You lock a rate for a term, then renew. This calculator compares offers over the period you choose, with every fee included.
Each payment is worked out with Canadian compounding rules for the rate, amortization and frequency you enter. Interest only offers pay just the interest.
We add up the interest you pay over the comparison period, then add each offer's fees. That total is the real cost of choosing that offer.
Fees are converted into a rate so you can compare like with like. An offer with no fees has an effective rate equal to its quoted rate.
Effective rate is the rate at which your payments and the balance left at the end of the period add up to the cash you actually receive after fees.
A rate that is 0.20% lower can save a few thousand dollars over five years. A $3,000 lender fee can wipe that out. That is why the calculator shows when a lower rate pays back its higher fees, and whether it does so before your term ends.
This matters most with alternative and private mortgages, where lender and broker fees are common and payments are often interest only. Interest only keeps the payment low, but your balance does not go down. Comparing the full cost side by side is the only way to see the trade off clearly.
Set the comparison period to your actual term, not your amortization. If one offer is a one year private mortgage and the other is a five year bank mortgage, compare them over one year, then ask what it will cost to renew or refinance when that year ends. The cheapest exit plan matters as much as the cheapest rate.
On a $500,000 mortgage with a 25 year amortization, a 0.25% lower rate saves roughly $70 a month and about $6,000 in interest over a five year term. Fees, prepayment penalties and renewal rates can change that picture, which is why the calculator includes them.
Only if the interest you save pays back the fee before your term ends. The calculator shows the month where the lower rate catches up. If that month falls after your term, the offer with no fee is usually cheaper.
Canadian law requires fixed rate mortgages to be quoted with interest compounded no more than twice a year. Variable and many private mortgages compound monthly, which makes the same quoted rate slightly more expensive. Choose the setting that matches your offers.
Interest only payments are lower, but none of the payment reduces your balance, so you pay interest on the full amount for the whole term. They suit short private mortgages with a clear exit plan, such as a sale or a refinance back to a bank.
Yes. Send us both commitments and we will check the rate, fees, prepayment terms and penalties, then tell you which offer costs less for your plans. Every review is free and there is no obligation.
This calculator provides estimates for illustration only and is not an offer or approval of financing. Results assume the rate stays the same for the comparison period and that all payments are made on time. Actual payments, interest and fees are set out in your lender's commitment. LendToday.ca, FSRA Brokerage Licence #13691.