Preparing for Renewal Season

Sept 2025 | Preparing for Renewal Season: What 2026 Borrowers Should Do Now

With nearly 60% of Canadian homeowners set to renew their mortgages by the end of 2026, preparation has never been more important. After years of ultra-low rates during the pandemic, many borrowers will soon renew into a higher-rate environment. The good news? A little early planning can save you stress …. and money.

Understanding the 2026 Renewal Wave

If your mortgage was signed between 2020 and 2021, your term likely ends in 2026. That means your original rate could be anywhere from 1% to 2%, compared to today’s 3.8–4.0% averages. This jump could raise monthly payments by 15–25%, depending on the loan amount and amortization period.

According to the Bank of Canada, renewal pressures will peak around mid-2026, but markets remain stable. Acting early (at least four months before your term expires) can help you lock in a competitive rate before it changes again.

Four Smart Steps to Take Before Renewal

1. Start the Process 120 Days in Advance: Most lenders allow you to begin renewal discussions up to four months early. Mark this date on your calendar so you don’t miss your window.
2. Shop Around for Better Offers: Auto-renewing with your current lender may cost you. Explore what other lenders or a mortgage broker can offer; switching could save thousands over your next term.​
3. Review Your Financial Picture: Paying down high-interest debt, making a lump-sum mortgage payment, or improving your credit score can all help you qualify for a better rate.
4. Reassess Your Mortgage Type: Fixed rates give stability, while variable options can be cheaper if the Bank of Canada continues to ease rates. Consider hybrids or shorter terms if you want flexibility.

How a Broker Can Make Renewal Easier

Working with a mortgage broker offers several benefits, including rate comparisons across multiple lenders, access to exclusive rate promotions, and personalized support through every stage of renewal paperwork. A broker can also help you evaluate long-term strategies, ensuring your new mortgage aligns with both financial goals and lifestyle needs.

The Bottom Line

If your mortgage renews in 2026, the best time to prepare is now. Early action gives you control, protects your budget, and positions you for success in the next market cycle. Reach out today to start your 2026 renewal plan and secure competitive financing before rates or your term catch you by surprise.