Canada has officially entered the mortgage renewal wave, and for many homeowners, 2026 will bring an important financial reset.
Between 2020 and 2024, millions of Canadians bought homes, refinanced, or renewed their mortgages across very different interest rate environments. Those mortgages are now coming up for renewal, and depending on when your term started, payments this time around could either increase or decrease.
Here’s what homeowners should know.
Why So Many Mortgages Are Renewing Now
Renewals began accelerating in 2025 and will continue through 2026 and 2027 as pandemic-era mortgage terms expire.
Over the past few years:
- Pandemic borrowers locked into historically low rates, most between 1.5% and 2%
- Many homeowners refinanced or renewed to access equity or reduce payments and take advantage of the ultra-low-rate market
- Fixed rates climbed above 6% in 2023 and early 2024
- Some borrowers intentionally chose shorter three-year terms, expecting rates to improve which they did
Now, those decisions are cycling back into today’s market conditions.
What Payment Changes May Look Like
Payment changes at renewal depend largely on when your current mortgage was set up.
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Pandemic-era mortgages (2020–2021)
Homeowners renewing ultra-low fixed rates will likely see payments increase as rates normalize.
General guideline:
? Payments may rise approximately $95–$135 per month for every $100,000 of mortgage balance, assuming about 20 years remaining on the amortization.
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Higher-rate mortgages from 2023–2024
Borrowers who purchased, refinanced, or renewed when fixed rates were above 6% may experience the opposite outcome.
Many selected three-year terms during that period and are now renewing into lower rate environments, meaning:
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- Payments may decrease
- Monthly cash flow may improve
- Renewal could feel like financial relief rather than pressure
This highlights why mortgage strategy and term selection matter just as much as rate timing.
Options If Payments Increase at Renewal
If higher rates result in payments that feel uncomfortable, homeowners still have options. Renewal is a chance to adjust your mortgage to better fit your current budget. Common strategies include:
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Extending the amortization
Resetting the amortization back out (for example, from 20 years back to 25 or 30 years, if eligible) can lower monthly payments by spreading the balance over a longer period.
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Making a lump-sum payment
If savings or investment funds are available, applying a lump sum directly to the mortgage balance at renewal can reduce payments and overall interest costs.
Often, a combination of small adjustments can bring payments back in line without dramatically changing long-term plans.
How the Mortgage Renewal Process Works
Many homeowners assume renewal is automatic. While your lender will send an offer before maturity, you still have choices.
There are two main options.
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Renew with Your Current Lender
About three months before your mortgage maturity date, your lender will send a renewal offer.
Pros
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- Simple process
- Minimal paperwork
- No legal costs
What many homeowners don’t realize:
The first offer is often not the lender’s most competitive rate. Reviewing alternatives before signing can make a meaningful difference.
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Switch Lenders at Renewal
Changing lenders at renewal is often easier than people expect and can provide access to better rates or features.
In most cases:
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- No penalties apply when switching at maturity
- The new lender typically covers transfer or legal costs
- Your mortgage balance and amortization remain the same
Important update:
? Most straight mortgage transfers no longer require borrowers to pass the mortgage stress test again, provided the mortgage amount and amortization are not increasing.
This allows homeowners to shop for better renewal options without needing to re-qualify under stricter lending rules.
What About Fees if I change lenders?
Most lenders charge a discharge fee when a mortgage is transferred to another institution, typically ranging from $200–$400 depending on the lender and province.
Because of this, the true benefit of switching should always be evaluated based on overall savings after fees, not just the advertised rate difference. In many cases the savings still outweigh the cost, but a proper comparison ensures the decision makes financial sense.
Why This Matters for Buyers and Sellers
Mortgage renewals quietly influence real estate decisions.
Some homeowners may:
- Adjust timelines before moving
- Reevaluate budgets when upgrading
- Access equity for renovations or investments
- Decide to buy or sell sooner than planned
Understanding renewals helps explain shifts in market activity and homeowner behaviour.
The Best Thing Homeowners Can Do
Start early.
The ideal time to review renewal options is 120–180 days before maturity. Many lenders allow rates to be secured in advance while keeping flexibility if market conditions improve.
Renewal isn’t just about accepting a new rate. It’s an opportunity to align your mortgage with future plans, whether that includes moving, renovating, investing, or improving cash flow.
Final Thoughts
Canada’s mortgage renewal wave isn’t coming, it’s already underway.
Some homeowners will see payments increase as they move out of pandemic-era rates. Others, particularly those who locked in during the high-rate period of 2023–2024, may see payments decrease.
The outcome depends less on headlines and more on timing, strategy, and reviewing options before signing a renewal offer.
If your mortgage renews this year and you’re wondering how it may affect your buying or selling plans, feel free to reach out anytime. I’m always happy to help you explore your options.
