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Blend-and-Extend Mortgage Calculator

A blend-and-extend lets you renew early with your current lender without a prepayment penalty. Your old rate and the lender's rate for the new term are blended into one rate. This calculator uses the simplified method the Financial Consumer Agency of Canada uses to illustrate it.

Built on official Canadian sourcesUpdated 2026-11-12

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Reference rates (Bank of Canada, not offers): Conventional mortgage, 1-year 5.49% (2026-11-04); Conventional mortgage, 3-year 6.05% (2026-11-04); Conventional mortgage, 5-year 6.19% (2026-11-04).

Blended rate

5.91%

For the next 60 months

How it's weighted
Part of the new termMonthsRate
Rest of your current term245.50%
Added months366.19%

FCAC's simplified method for illustration. Your lender must tell you how it calculates your blended rate, and may charge administration fees.

How the blend works

Your current rate applies to the months left on your term and the new rate to the added months. The blended rate is the weighted average over the new term. In FCAC's example, 5.5% for the 24 months left and 4% for the other 36 months of a new 5-year term blend to 4.6%.

When it makes sense

  • When rates have fallen and breaking the mortgage would trigger a large penalty.
  • When rates are rising and you want to lock in for longer.
  • Compare it with waiting until renewal; administration fees may apply.

Frequently asked questions

Will my lender use exactly this rate?

Not necessarily. Your lender must tell you how it calculates your blended rate, and its method may differ.

Sources

Rules are summarized in our own words from official publications. Check the source and talk to your lender or a licensed professional before making a decision.

Informational only, not financial advice. Data as of the release snapshot generated 2026-11-12.