# Renewing an $850,000 Quebec Mortgage from 5.49% to 4.29%

> Worked Quebec renewal where the new pinned rate (4.29%) is lower than the maturing 5.49% coupon on an $850,000 remaining balance — payment relief, not shock.

Category: Calculator example · renewal-calculator
Last verified: 2026-09-12
Source: https://ratellow.com/mortgages/renewal-calculator/examples/850000-renewal-rate-drop-quebec
Live calculator: https://ratellow.com/mortgages/renewal-calculator?price=850000&prov=QC&tax=1

## Worked result
- Remaining balance: $850,000
- Remaining amortization: 20 years
- Outgoing quoted rate: 5.49%
- Outgoing payment: $5,812.65 (Monthly)
- Pinned renewal rate: 4.29%
- Renewed payment: $5,264.47
- Payment shock: −$548.18 (per monthly period)
- First renewed payment — interest: $3,011.94
- Interest if this rate holds for the remaining amortization: $413,473
- Province: Quebec

## When the new quote is lower than the letter you have
The arithmetic is identical to the shock pages and the sign flips. Outgoing annuity at the maturing five-handle coupon minus the new annuity at the pinned four-handle quote is relief per month. Quebec hypothec mechanics do not change the formula. What they change is the paperwork if you switch: a new hypothec, a notary, discharge of the old one, and sometimes a lag that Ontario solicitor files do not have. Relief is not a reason to skip that checklist, and it is not a reason to skip the one-hundred-eighty-day window. A cheaper debit can hide a worse prepayment privilege or a worse portability clause.

### Outgoing vs incoming
$850,000 at 5.49% → $5,812.65. Same balance, 20 years left, 4.29% → $5,264.47. Shock −$548.18.

### First renewed period
$3,011.94 interest, $2,252.53 principal. Frequency stays monthly.

## What this band means
Not every two-thousand-twenty-six renewal is a horror letter. Households who locked a five-handle coupon in the hiking cycle are now meeting a lower street sheet. Quebec has plenty of these files in the eight-hundred-thousand remaining band — purchase prices from the last cycle, twenty percent down, a hypothec that has been uneventful. This page exists so the hub is not a one-note warning and so a household seeing a smaller debit does not confuse that luck with a reason to sign the first offer. Relief can be spent, saved, or used to shorten the remaining clock; only one of those is a mortgage decision.

Outgoing $5,812.65 at 5.49% becomes $5,264.47 at 4.29%. The difference is $548.18 lower each month. That is real room in a Quebec budget that also pays Welcome Tax only when it buys again, not at renewal. The first new month is still $3,011.94 interest because $850,000 is still large; cheaper money does not make a jumbo remaining balance small. The temptation is to restore lifestyle to match the new debit. The more durable use, on a twenty-year remaining hypothec, is to keep paying the old $5,812.65 as a voluntary extra and let the difference retire principal. Quebec lenders will not all treat that extra the same way; confirm it hits principal and is not held as a skip reserve. Switching for a still-cheaper quote is rational only after notary-and-discharge costs are inside the break-even. The Civil Code file is slower than a common-law switch; start the one-hundred-eighty-day clock anyway.

## Local context
A hypothec that originated in the hiking cycle, now meeting a lower street sheet. Notary discharge and a new hypothec on a switch have a lag Ontario solicitor files do not. Keeping the old PAD amount as a voluntary extra is a privilege conversation, not an automatic carry-forward. Welcome Tax does not reappear. Relief is not a reason to skip the one-hundred-eighty-day window.

## Sensitivity
If the incoming quote were a point higher than this pin, the relief would shrink or vanish — that is the first sensitivity row. Stretching remaining amortization would manufacture more relief and would be a refinance. The next remaining-balance band is the Ontario one-million-one-hundred-thousand file, which goes the other direction again.

- Renewal rate 5.29%: $5,719.43 (+$454.96 vs this renewal)
- Renewal rate 3.29%: $4,828.79 (−$435.68 vs this renewal)
- 25-year remaining amortization: $4,605.80 (−$658.67 vs this renewal)

## FAQs
### If my $850,000 Quebec renewal payment is falling, should I still shop lenders?
Yes. A falling debit from 5.49% to 4.29% can still hide a worse privilege, portability, or hypothec-discharge cost. Ask the incumbent to beat a written competing quote. Notary and discharge fees on a Quebec switch have to fit inside the savings versus staying.

### Can I keep paying the old $850,000 Quebec amount after the rate drops?
Often, as a voluntary extra or a payment-increase privilege. The new contract debit is $5,264.47; the old one was $5,812.65. Confirm in the new commitment that extra hits principal immediately. Do not assume the old PAD can stay as-is without a new authorization.

### Does a cheaper Quebec renewal change my Welcome Tax?
No. Droits de mutation are a purchase tax. Renewal is not a purchase. The $548.18 monthly relief is a mortgage-rate event. Welcome Tax returns only if you sell and buy, at the price of the new property.

This relief file pins 5.49% leaving and 4.29% arriving. If the live sheet is higher than the pin, the relief shrinks — re-run the calculator rather than spending $548.18 twice.