How many Canadians need to renew their mortgage in 2026?

Approximately 60% of Canadian mortgages, nearly 2.2 million loans, are maturing between 2025 and 2026. This is the largest wave of renewals in recent history.

How much will my mortgage payments increase at renewal?

Homeowners who signed at 1.5-2.5% rates in 2020-2021 could see payments increase by 30-50%. On a $400,000 mortgage, that could mean $500 to $800 more per month.

When should I start preparing for my mortgage renewal?

Ideally, start 120 to 180 days before your term expires. Most lenders allow you to lock in a rate up to 120 days in advance, protecting you against a potential rate increase.

Can I switch banks at mortgage renewal?

Yes, renewal is the ideal time to shop around. Switching lenders can save you 0.20 to 0.50 percentage points. A mortgage broker can negotiate with multiple institutions for you.

Should I choose a 3-year or 5-year term at renewal in 2026?

In 2026, the 5-year fixed term (3.89-4.29%) offers the best protection. A 3-year term may be interesting if you believe rates will drop further, but at the cost of some uncertainty.

Mortgage Renewal 2026: Guide to Avoiding Payment Shock

🎯 Is your mortgage coming up for renewal?

Estimate your property’s current value before you negotiate

Estimate my property →

The 2025–2026 mortgage renewal wave is unprecedented in Canada. Nearly 2.2 million households must renew at rates significantly higher than what they secured in 2020–2021. Here’s your complete guide.

📊 The Scale of the Renewal Wave

Never have this many mortgages expired at the same time in Canada. Five-year terms signed in 2020–2021, during the ultra-low rate period, are all maturing simultaneously.

60%

Of mortgages up for renewal

2.2M

Households affected in Canada

1.5–2.5%

Rates signed in 2020–2021

💸 Payment Shock — How Much More?

Here’s the concrete impact on a $400,000 mortgage (25-year amortization):

$1,750/mo

Payment at 2.0% (2021)

$2,200/mo

Payment at 3.89% (2026)

+$450/mo

Increase at best 2026 rate

❌ Worst case: at the posted rate of 4.29%, the payment would rise to $2,350/mo, or +$600/mo and +$7,200/year. This is why negotiating is critical.

📋 How to Prepare for Your Renewal

1. 📅 Start 120–180 days early — Lock in a rate in advance to protect yourself

2. 📊 Know your situation — Remaining balance, current property value, loan-to-value ratio

3. 💰 Shop around for rates — Never sign your bank’s first offer

4. 🤝 Consult a broker — A mortgage broker negotiates with 20+ institutions

5. 📝 Revise your budget — Factor the increase into your financial planning

💡 Tip: most lenders will send you a renewal offer by mail 21 days before your term expires. Don’t accept it without comparing — it’s rarely the best rate.

🤝 Strategies to Negotiate the Best Rate

✅ Do

Get 3+ written quotes

Show competing offers to your bank

Negotiate cashback and conditions

Consider switching lenders

❌ Don’t

Accept the first offer without negotiating

Wait until the last minute

Ignore hidden fees (penalties)

Choose a term by default

🤔 Should You Sell Instead of Renewing?

For some homeowners, renewing at a higher rate could make the property too expensive. Here are situations where selling may be the better option:

⚠️ Your payments would exceed 40% of gross income

⚠️ Your property has gained significant value since purchase

⚠️ You need to unlock equity for other projects

⚠️ Your family situation has changed (relocation, separation)

💳 Buyer calculator 💵 Seller calculator

Renewal or sale? Start by knowing your property’s value

Free estimate to help you make the best financial decision.

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Mortgage Renewal 2026: Avoid the Payment Shock