Worked example · Verified 2026-09-12

Payment shock on a $680,000 uninsured Ontario renewal from 1.74%

Households in this remaining-balance band often originated at the absolute floor of the cheap-coupon window, put twenty percent down, and have been quietly building equity. They are not the insured starter of two-thousand-twenty. They are the conventional mid-market Ontario file that looks fine until the letter arrives. Eighteen years left is a feature they may have wanted (pay it off before retirement) and a bug at renewal (less clock to absorb the new quote). This page refuses to paper over that by silently stretching the amortization.

The uninsured Ontario file pins 1.74% leaving and 4.79% arriving on an eighteen-year remaining clock. Live quotes move; this shock does not chase them. Live rates hub.

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Computed result

Remaining balance$680,000
Remaining amortization18 years
Outgoing quoted rate1.74%
Outgoing payment$3,667.13Monthly
Pinned renewal rate4.79%
Renewed payment$4,686.74
Payment shock+$1,019.61per monthly period
First renewed payment — interest$2,687.64
Interest if this rate holds for the remaining amortization$332,337
ProvinceOntario

Shorter remaining clock, larger coupon gap

Eighteen years remaining means this origination has already consumed seven years of a twenty-five-year clock, or started as a shorter amortization. Either way, the annuity now has fewer periods, so a given rate increase produces a larger payment jump than the same quote on a twenty-five-year remaining file. That is the mechanical reason this band hurts more than the two-hundred-eighty-thousand page even after you scale for size. Uninsured status is the second axis: a straight switch remains exempt from the prescribed qualifying rate, which is the feature this household actually has, and a refinance to buy the clock back to twenty-five years would surrender that feature.

  1. 01 · Outgoing vs incoming

    $680,000 at 1.74% → $3,667.13. Same balance, 18 years left, 4.79% → $4,686.74. Shock +$1,019.61.

  2. 02 · First renewed period

    $2,687.64 interest, $1,999.10 principal. Frequency stays monthly.

What this band means

Outgoing $3,667.13 at 1.74% becomes $4,686.74 at 4.79%. Shock +$1,019.61 is higher and it is the largest dollar jump on this hub so far because the coupon gap is wide and the remaining clock is short. The first renewed month is $2,687.64 interest — the cheap coupon had been an unusually fast principal machine, and that ends. Uninsured straight-switch exemption is the strategic asset on this file. Using the renewal to pull Greater Toronto equity, to blend in a HELOC, or to restore a twenty-five-year clock is how that asset is given away. The one-hundred-eighty-day window is where you get competing quotes while the incumbent still has to beat a real number. Eighteen years is also short enough that a serious prepayment in year one of the new term still moves the payoff into a planned retirement date; ignoring that and only staring at the new debit is how a conventional file becomes a thirty-year problem it is not allowed to be.

A conventional origination from the floor of the cheap-coupon window, maybe a gift-assisted twenty percent, now meeting a higher quote with a retirement-oriented remaining clock. Straight-switch exemption since late November twenty twenty-four is the strategic asset — Guideline B twenty’s prescribed qualifying rate stays asleep on a stay-put or a clean switch. Restoring twenty-five years, adding a HELOC, or pulling Greater Toronto equity surrenders that asset. The one-hundred-eighty-day competing quote is what you bring to the incumbent.

Sensitivity

Putting five more years on the clock would shrink the debit and re-open the qualifying rate. A point either way on 4.79% is the sensitivity that stays inside a true renewal. The next band on this hub is the Quebec rate-drop file, which exists so not every renewal story on this site is a horror letter.

ChangeResultVersus this page
Renewal rate 5.79%$5,049.52+$362.78 vs this renewal
Renewal rate 3.79%$4,337.63−$349.11 vs this renewal
25-year remaining amortization$3,874.02−$812.72 vs this renewal

Questions that only this band answers

Why is the shock on this $680,000 Ontario renewal larger than on a bigger remaining balance with more years left?▾
Fewer remaining payments mean each payment has to carry more of the new interest. This file has 18 years left. The coupon is also jumping from 1.74% to 4.79%. Size and clock both matter; this band has a hard clock.
Can I switch lenders on this $680,000 uninsured Ontario renewal without a stress test?▾
If it is a qualifying straight switch — same remaining balance, same remaining amortization, no extra money pulled — the prescribed qualifying rate has not applied since late November twenty twenty-four. Changing those terms is a refinance. This page prices a clean re-price of $680,000 at 4.79%.
Should I restore a twenty-five-year amortization on this $680,000 renewal to cut the payment?▾
That request is a refinance. It would likely lower the debit toward a twenty-five-year annuity and it would bring the qualifying rate back. This page keeps 18 years so the shock you see is the renewal you actually have, not the refinance you might apply for.

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Last verified: 2026-09-12