Compare up to four mortgage scenarios side by side: payments, insurance premiums, stress-test qualification, cash to close, and where each leaves you after five years.
How to compare two mortgage offers on true cost, not just rate
The lower rate is not always the cheaper mortgage. Run both offers through the calculator above with the same amortization and payment frequency, then check four things the rate hides: the break penalty method (a big-bank fixed rate usually carries an interest-rate-differential penalty that can run five figures; most monolines charge three months’ interest), the prepayment privileges (10% versus 20% lump sums, and whether you can double up payments), portability if you might move mid-term, and any cash-back that is clawed back on early exit. Over a five-year term a 0.10% rate difference on $500,000 is about $2,400 in interest; one avoided IRD penalty can be worth more than that. The break-penalty guide shows the math for each method.
Frequently asked questions
What does this calculator actually compare?
Up to four mortgages side by side: payment, total interest over the term, and the balance left at renewal. Rate differences look tiny as decimals and get real in dollars.
Is the lowest rate always the winner?
No. A slightly higher rate with generous prepayment room or a fair penalty clause can beat the cheapest sticker, because most people break or change their mortgage before the term ends. Big-bank fixed penalties in particular can erase years of rate savings.
How do I compare fixed against variable fairly?
Run both at today’s numbers, then rerun the variable a point higher and a point lower. Right now the best insured five-year fixed is 4.24% and the variable is 3.60%, as of September 2, 2026.