Why Western Canada’s Top Rising Broker Liam Ramadan recommends a conversation before automatically renewing with your bank!

Navigating Canada’s 2026 Mortgage Renewal Wave: Your Proactive Guide

There’s been a lot of conversation in Canadian financial circles about the “mortgage renewal wave” looming, particularly the significant volume of mortgages set to renew in 2026. For many homeowners, especially those who secured five-year fixed terms during the ultra-low-rate environment of 2020 and 2021, this transition can bring anxiety.

As your trusted broker, I want to cut through the noise and provide a clear, measured outlook on what this means for you and your financial plan.

The Scale of the Renewal

According to the Canada Mortgage and Housing Corporation (CMHC), approximately 1.15 million mortgages are scheduled to renew in 2026, following a large wave in 2025. These are largely mortgages that benefited from record-low interest rates offered during the initial phase of the pandemic.

It’s natural to feel a pinch when moving from a rate near 2% to current market rates. However, the worst-case scenario predictions from a couple of years ago are largely being mitigated by current economic trends.

Why Experts Aren’t Panicking

While the payment shock is real for some, leading financial institutions and economists are approaching this renewal wave with a measured confidence, suggesting that a widespread systemic crisis is unlikely. Here is why:

1. Rate Relief: While rates are higher than they were in 2020, we have seen some relief. If you’ve been following the market, you know the Bank of Canada’s policy rate has adjusted significantly from its peak, offering a necessary buffer for renewing borrowers compared to earlier high-rate forecasts.
2. Increased Financial Flexibility: The profile of many homeowners renewing has improved since 2020/2021. Many have built substantial home equity and have seen increases in salary and personal disposable income. This enhanced financial position gives homeowners greater flexibility.
3. Options are Available: Lenders understand the stress points. Homeowners have tools at their disposal to manage the higher costs, including:
   • Extending the Amortization Period: Stretching out the remaining mortgage term to reduce monthly payments.
   • Refinancing: Consolidating high-interest non-mortgage debt (like credit card or line of credit balances) to save money overall, or locking in a new rate with a different structure.
   • Pre-Payment: Using accumulated savings to make a lump-sum payment and reduce the principal, thereby lowering future interest costs.

It’s true that stress is visible in other areas, such as an uptick in non-mortgage debt, which highlights the need for careful financial management. The overall consensus, however, is that most borrowers will manage successfully, but will need a plan.

Your Proactive Next Step

If your mortgage is up for renewal in 2026, the time to start planning is now. Don’t wait for the bank to send you a standard renewal offer a few weeks before your due date.

Your existing lender’s best offer might not be the best offer available. The key to mitigating the renewal shock is comparison shopping and tailoring a renewal strategy to your current financial goals.

Don’t leave money on the table. Let’s connect and review your situation.

• Are you better off with a fixed or variable rate given today’s environment?
• Should you use an amortization extension to keep payments low, or accelerate payments while you can?
• Could a different lender offer a better rate and more flexible terms?

As your mortgage broker, I have access to dozens of lenders and can assess your unique situation—whether you took your mortgage out at the lowest rates of 2020/2021 or later in the rate-hiking cycle—to ensure you are renewing with the best possible terms.

Contact me today at 1-825-333-6468 or visit liamthebroker.ca to schedule your 2026 renewal strategy session. The best way to beat the renewal wave is to prepare for it early!