Key takeaways
- Over 1.15 million Canadian mortgages renew in 2026 — the largest cohort in history.
- Rates locked at 1.49%–2.29% in 2020–2021 may reset to roughly 4.29%–4.99%.
- Typical payments could rise by $500 to $900+ per month.
- You are never obligated to accept your lender's first renewal offer.
2026 is shaping up to be a defining year for Canadian homeowners. More than 1.15 million mortgages are set to renew — the largest single cohort of renewals in the country's history. For many households, this is the moment the ultra-low rates of the pandemic finally catch up with reality.
Why the payment shock is real
Borrowers who locked in between 2020 and 2021 often secured rates as low as 1.49% to 2.29%. Renewing in today's market means resetting closer to 4.29% to 4.99%. On a typical mortgage, that can translate into a monthly payment increase of $500 to more than $900. For a household that budgeted around the old payment, that is a meaningful hit — and one worth planning for well before the renewal date arrives.
You do not have to take the first offer
Lenders typically mail a renewal offer a few months before your term ends. It is convenient to simply sign and return it — and that is exactly what many people do. But that initial offer is rarely the sharpest rate available. You have every right to negotiate, to shop other lenders, or to switch entirely. Even a small difference in rate compounds into thousands of dollars over a five-year term.
A rule change that works in your favour
There is good news buried in the regulations. Under a 2025 OSFI rule change, if you renew with your existing lender and are not borrowing more, you no longer have to requalify under the mortgage stress test. That makes staying put simpler. The trade-off is that switching lenders for a better rate can still trigger the stress test — so the real question becomes whether the savings from switching outweigh the friction of requalifying.
How to prepare for your renewal
- Start early: review your options three to six months before your maturity date.
- Know your numbers: calculate what your payment looks like at 4.5% to 5% so there are no surprises.
- Compare beyond your bank: a broker can put your existing lender's offer up against the wider market.
- Consider the term length: a shorter term keeps you flexible if rates ease; a longer term locks in certainty.
- Look at the full cost, not just the rate: penalties, fees, and prepayment privileges all matter.
The bottom line
A renewal is not just paperwork — it is one of the few moments where a few hours of effort can save you thousands. If your mortgage is up for renewal this year, a Finevo advisor can review your current offer, compare it across more than 40 lenders, and help you decide whether to stay, switch, or restructure.
This article is general information about Canadian mortgages and is not financial advice. Rates, programs, and eligibility are subject to change and to lender and insurer qualification. Figures cited reflect market conditions at the time of writing. Speak with a licensed Finevo advisor for guidance specific to your situation.
