Truro
Nova Scotia mortgage renewal savings calculator
The renewal letter against a switch: the payment on each, the difference over the term, and the interest each one costs, with no stress test on a straight switch.
How much does switching lenders at renewal save in Nova Scotia?
On a $300,000 balance with 20 years left, a rate half a point below the lender’s offer is worth about $80 a month, $4,800 over a 5-year term, and $7,033 less interest. Since November 21, 2024 a straight switch of an uninsured mortgage between federally regulated lenders is not stress-tested, and the new lender usually covers the transfer.
Run it on your renewal letter
The alternative starts at 4.45%, the chartered-bank prime rate, Bank of Canada, 2026-09-16; the offer starts half a point above it as an illustration. Replace both with the rate on your renewal letter and the rate you were quoted.
Since November 21, 2024, a straight switch of an uninsured mortgage between federally regulated lenders is not stress-tested: same balance, same amortization, no new money. The new lender usually covers the appraisal and the transfer on a standard charge. A collateral charge cannot be assigned and may need legal fees to move.
Sign the letter or switch: $300,000, 20 years left, 5-year term
The switch is half a point below the letter on this example
Sign the renewal letterStay with your lender
- Balance and amortization
- $300,000, 20 years left
- Monthly difference
- None; the letter is the baseline
- Payments over the 5-year term
- None; the baseline
- Interest over the term
- None; the baseline
- Stress test
- Not applied: you stay on the existing loan
- Switch costs
- None
Switch lendersHalf a point lower
- Balance and amortization
- $300,000, 20 years left; same balance, same amortization
- Monthly difference
- $80 a month less
- Payments over the 5-year term
- $4,800 less in payments
- Interest over the term
- $7,033 less interest
- Stress test
- Exempt on a straight switch between federally regulated lenders since November 21, 2024
- Switch costs
- Usually covered by the new lender on a standard charge; a collateral charge may need legal fees
Half a point over 5 years on this example is $7,033 in interest.
Illustration on $300,000 with 20 years left and a 5-year term, semi-annual compounding: the switch rate is the chartered-bank prime rate, Bank of Canada, 2026-09-16 and the offer is that rate plus half a point; neither is a quote. OSFI straight-switch rule of November 21, 2024. Last verified September 20, 2026.
Go deeper
The detail, if you want it
What each gap is worth
| Gap | Payment at the offer | Payment at the alternative | Monthly difference | Over the term | Interest saved |
|---|---|---|---|---|---|
| 0.25 points | $1,923 | $1,883 | $40 | $2,387 | $3,512 |
| 0.50 points | $1,963 | $1,883 | $80 | $4,800 | $7,033 |
| 0.75 points | $2,004 | $1,883 | $121 | $7,237 | $10,561 |
| 1.00 points | $2,045 | $1,883 | $162 | $9,698 | $14,098 |
Interest saved is less than the payment difference because the lower rate also pays the balance down faster: at the end of the term you owe less, and that shows up in the next term.
When the exemption applies
OSFI’s rule of November 21, 2024 exempts an existing stand-alone uninsured mortgage moving from one federally regulated financial institution to another, with no increase in the remaining amortization or the loan amount; the balance may rise by up to $3,000 to cover penalties or fees.
Outside that box you are qualified at the greater of the contract rate plus 2% and 5.25%: taking out equity, extending the amortization, re-registering a collateral charge for more, or moving to or from a credit union, which is provincially regulated. Insured mortgages were already exempt on a straight switch. The new lender still verifies income and pulls credit; only the qualifying-rate hurdle is removed.
What a switch costs
Standard charge: the new lender takes an assignment of the existing charge. It commonly covers the appraisal and the transfer and pays the brokerage, so the borrower pays nothing and the saving in the table is the whole saving.
Collateral charge: registered for more than the loan and often tied to a line of credit, it cannot be assigned. Moving it means a discharge and a new registration, with legal fees, and the file leaves the straight-switch box if the amount changes. Check which you have before the 120-day window opens.
At maturity there is no prepayment penalty on either. Leave before maturity and the penalty applies; the $3,000 allowance in the exemption exists to absorb one.
Why a broker
Licensed, independent, paid by the lender
- Licensed in Nova Scotia Associate broker 3001134, verifiable on the provincial register
- $0 broker fee On a standard residential mortgage the lender pays, not you
- Banks, credit unions, monolines One application, one credit check, placed with the lender that reads your file best
- Every part of the province Bedford office, remote process: Yarmouth to Sydney, the same four steps
Questions people ask
Does the stress test apply when I switch lenders at renewal?
Not on a straight switch. Since November 21, 2024 OSFI exempts an existing stand-alone uninsured mortgage moving from one federally regulated financial institution to another, with no increase in the remaining amortization or the loan amount; the balance may rise by up to $3,000 to cover penalties or fees. Add money, extend the amortization or move to or from a provincially regulated credit union and you are qualified at the greater of the contract rate plus 2% and 5.25%.
Is a quarter point worth switching for?
On $300,000 with 20 years left, a quarter point is $40 a month, $2,387 over a 5-year term, and $3,512 less interest. Half a point is $4,800 in payments over the term; a full point $9,698. Whether it is worth the paperwork depends on those figures against any cost the new lender does not cover.
What does a switch cost?
On a standard-charge mortgage the new lender usually covers the appraisal and the transfer, and pays the brokerage, so the borrower pays nothing. A collateral charge cannot be assigned; it needs a full refinance with legal fees. The exemption lets up to $3,000 be added to the balance for penalties or fees and still count as a straight switch.
My mortgage is with a credit union. Does the exemption apply?
No. Credit unions are provincially regulated and the exemption needs a federally regulated lender on both ends, so a move between a credit union and a bank is qualified at the greater of the contract rate plus 2% and 5.25%. Start at 120 days, not 21, so a requalification has time to run; staying put avoids it.
Still unsure? Ask me directly.
If your question isn't here, your situation is probably specific. Fifteen minutes on the phone beats reading another page, and nothing is pulled on your credit.
(902) 298-0218 · Monday to Friday, 9:00 am to 5:00 pm Atlantic
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Need it faster? Call (902) 298-0218, Monday to Friday, 9:00 am to 5:00 pm Atlantic.
Renewing in the next six months?
Send the renewal letter and your current statement; you get back whether the straight-switch exemption applies, what a switch is worth on your balance, and whether the letter is worth signing, within a business day.
(902) 298-0218 · Monday to Friday, 9:00 am to 5:00 pm Atlantic