Rates Are Changing. Your Strategy Should Too. Especially in 2026.
If your mortgage is coming up for renewal in 2026, this is not the year to sign the first renewal offer that lands on your doorstep.
A large wave of Canadian homeowners locked in ultra low interest rates in 2021 and 2022. Those pandemic rates were not normal market conditions. Now, many of those same homeowners are renewing into a higher rate environment. Even with some rate adjustments over the past year, today’s rates are still significantly higher than what most people secured five years ago.
For many households, that means higher monthly payments. Some are experiencing what the industry is calling renewal shock.
But renewal is not automatic. And it is not something you have to accept without looking at your options.
What Is Actually Happening at Renewal in 2026
When your mortgage term ends, your lender will send you a renewal offer outlining a new rate and term. That offer is simply a proposal. It is not your only choice.
Many lenders allow you to secure a renewal rate up to four to six months before your maturity date without penalty. That means you have time to explore the market before you are up against a deadline.
Here is the reality for many 2026 renewals:
• Your previous rate was likely in the historically low range of 2021 or early 2022
• Today’s rates are higher than those levels
• Your payment will likely increase unless you adjust your strategy
The key is understanding that renewal is a decision point. It is not just paperwork.
Renewal Is Not Just About the Interest Rate
The interest rate matters. Of course it does. But renewal is also your opportunity to reassess the structure of your mortgage.
Your life may look very different today than it did five years ago. Income changes. Family changes. Goals change. Your mortgage strategy should reflect that.
At renewal you can:
• Compare rates across multiple lenders
• Negotiate with your current lender
• Switch lenders without mid term penalty
• Adjust your term length
• Change payment frequency
• Increase payments to pay down faster
• Access equity if it supports your goals
This is one of the easiest times to move your mortgage if it makes sense, because you are not breaking a contract early.
What If the New Payment Feels Too High
If the proposed renewal payment feels uncomfortable, do not panic. There are options.
Start early. The earlier you begin reviewing your file, the more flexibility you have.
You can look at:
Extending your amortization to reduce the monthly payment
Adjusting your term selection
Exploring different lenders
Strategically using built up equity if appropriate
Extending amortization can lower the payment, although it may increase the total interest paid over time. Every adjustment has trade offs. The goal is to make a decision that fits your current financial reality, not just your past rate.
What You Can Do Now
If you are renewing in 2026, here are a few practical steps:
Start reviewing your options four to six months before maturity
Do not assume your lender’s first offer is their best offer
Look at more than just the rate
Consider your plans for the next three to five years
Ask questions before signing anything
Convenience is expensive. A little preparation can make a meaningful difference over the next term.
Renewal Does Not Have to Be a Setback
Yes, many Canadians are renewing into higher rates than they had in 2021. That part is real.
But renewal is also an opportunity.
It is a chance to reset.
A chance to realign your mortgage with your current goals.
A chance to make an intentional decision instead of an automatic one.
If your renewal is coming up and you are unsure what to do next, start the conversation early. You have more options than you think.