Canadian rate conversion
Each rate is converted from nominal semi-annual compounding to the periodic rate for monthly or biweekly payments before the amortizing payment is calculated.
Mortgage offer analysis
Mortgage Comparison Calculator Canada
Compare two mortgage offers by payment frequency, annual payment burden, interest and principal during the term, balance at renewal, fees, cash back, net term cost, and total amortization interest.
Side-by-side offer analysisTerm interest and principalBalance at renewalFees and cash back
Calculation inputs
Compare mortgage offers on more than rate
Enter each offer's amount, rate, amortization, term, frequency, fees, and cash back. The engine compares payment, term interest, principal reduction, balance, and net term cost.
Scenario A
Option A
$
%
years
years
Fees and cash-back incentives
$
$
Scenario B
Option B
$
%
years
years
Fees and cash-back incentives
$
$
How the calculation works
Understand the formula before relying on the result
Term schedule
The engine simulates each payment through the selected term to calculate interest paid, principal repaid, and balance remaining at renewal.
Net term cost
Interest paid during the term is combined with upfront fees and reduced by cash back. Principal is not treated as a cost because it increases borrower equity.
Accelerated biweekly
The accelerated option uses half of the calculated monthly payment paid 26 times per year, which increases annual payments and can shorten amortization.
Interpret the result
Lower payment
The lower recurring payment may help cash flow, but it does not necessarily produce the lowest interest, lowest term cost, or lowest balance at renewal.
Lower term cost
Net term cost focuses on interest and offer incentives over the selected term. It does not model penalties, future renewal rates, portability, or feature value.
Balance at term
A lower balance at renewal reduces future interest exposure and can matter more than a small initial rate difference.
Offer features
Prepayment privileges, portability, blend options, collateral charges, break penalties, conversion rights, and qualification rules can outweigh the arithmetic shown.
Common mistakes
- Choosing the lowest advertised rate without reviewing restrictions or fees.
- Comparing payments with different amortizations and calling the lower payment cheaper.
- Treating principal repayment as a cost.
- Ignoring cash-back clawbacks or higher break penalties.
- Comparing only the first term without considering balance at renewal.
What lenders review
- Whether both offers are actually available for the borrower's transaction and property.
- Rate hold, term, amortization, payment frequency, and compounding.
- Prepayment privileges, portability, assumptions, conversion, and renewal features.
- Penalty formula, posted-rate methodology, cash-back clawback, and discharge costs.
- Collateral-charge registration, product bundling, account conditions, and lender service model.
Planning tips
- Compare offers using the same mortgage amount and realistic amortization unless the structure itself is the decision.
- Include every fee, cash-back amount, and known cost.
- Review the projected balance at term, not only the payment.
- Run a second comparison using the expected holding period if the mortgage may be broken early.
- Have the commitment and standard charge terms reviewed before accepting a low-rate restrictive product.
Connected HopeWell knowledge
Connect the mortgage comparison calculator to the mortgage decision
Use the result alongside HopeWell's guide chapters, glossary definitions, real underwriting case studies, service pages, and related calculators.
Calculation pathway
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Frequently asked questions
Questions about this calculation
Is the lowest mortgage rate always best?
No. Fees, payment frequency, amortization, penalties, restrictions, cash back, portability, prepayment privileges, and balance at renewal can make a higher-rate offer better overall.
What is net term cost?
In this calculator it is interest paid during the selected term plus upfront fees minus cash back. Principal repayment is excluded because it reduces the mortgage balance.
Why compare balance at renewal?
Two offers with similar payments can reduce principal at different speeds. The remaining balance affects future interest and renewal risk.
How is accelerated biweekly modelled?
The calculator uses half of the monthly payment paid every two weeks, resulting in 26 half-payments per year.
Does the calculator compare mortgage penalties?
Not in Phase 1. Use the future mortgage penalty and IRD calculators or enter a known fee for a simplified comparison. Commitment terms must be reviewed separately.