1. How much will my mortgage payments increase at renewal in 2026?

Most Canadian homeowners who locked in pandemic-era rates (1.5%–3.0%) are seeing payment increases of 15% to 20% upon renewal in 2026. For an average mortgage balance of $550,000, this can mean an extra $550 to $700 per month. We can help you review your budget and find the best available rates to minimize this "renewal shock".

2. Can I switch lenders at renewal without being re-stress-tested?

Yes. Under current OSFI rules for 2026, you can perform a "straight switch" to a new lender without passing the mortgage stress test again, provided you are not increasing your loan amount or extending your original amortization schedule. This is a vital strategy for many homeowners to secure better terms without income re-qualification.

3. Should I choose a Fixed or Variable rate right now?

In early 2026, the Bank of Canada has stabilized the policy rate, making variable rates more competitive than they have been in years. Many clients are opting for 3-year fixed terms to balance stability with the flexibility to reassess sooner if rates continue to trend downward.

4. What can I do if I can't afford my new renewal payment?

If you are worried about affordability, there are several tools we can use:

• Amortization Extension: Moving from a 20-year back to a 25 or 30-year schedule can significantly lower your monthly obligation.

• Lump-Sum Prepayments: Making a payment before your term officially ends can lower your new principal balance.

• Debt Consolidation: Rolling high-interest credit card debt into your mortgage can improve your overall monthly cash flow.

5. When should I start the renewal process?

You can typically start shopping for your renewal 120 to 180 days before your current term matures. Starting early allows us to "rate hold" a lower rate for you while you compare options, protecting you if market rates rise before your actual renewal date.

Not sure which strategy is right for you? Click here to book a free 2026 Mortgage Review.