Last updated: September 16, 2026
If your mortgage comes up for renewal in the next year, this guide is for you. It covers what a renewal is, where rates sit right now, the rules that protect you, and the mistakes that cost Ontario homeowners real money. Read it once and you’ll know what to do when the renewal letter lands.
The short version
- About one in eight Canadian mortgages will renew over the next year, and most of them were signed at pandemic-era rates.
- Best five-year fixed rates through a broker sit between 4.14% and 4.69% as of mid-September 2026.
- Your lender must send a renewal statement at least 21 days before your term ends.
- If you switch lenders without borrowing more, you no longer have to pass the stress test.
- Doing nothing is the most expensive option, because many lenders renew you automatically at a rate you never negotiated.
What a mortgage renewal actually is
A Canadian mortgage runs on two clocks. The amortization is the full payoff period, usually 25 or 30 years. The term is the stretch you’ve agreed to with your lender, most often five years. When the term ends, the balance is due. In practice you renew it, move it to another lender, or pay it off.
At renewal you’re a free agent. You can change the term, change the rate type, or change lenders. You owe your current lender nothing beyond the balance. That freedom is worth money, but only if you use it.
Why 2026 renewals feel different
The Bank of Canada’s 2026 Financial Stability Report describes the last leg of the renewal wave. About 12% of all outstanding mortgages renew over the coming year. These are the final five-year fixed mortgages signed during the pandemic. On average, those borrowers will see payments rise by about 15%.
Another 14% of mortgages also renew in that window, but they’re variable-payment or short-term loans signed after rates rose. Most of those borrowers won’t see any payment change. The Bank expects nearly everyone facing a big increase to have renewed by the second half of 2027.
One more figure from the same report is reassuring. More than 90% of the people who renewed over the past year did so at a rate below the one they were stress-tested at. The system was built for this moment. For most households the pain is a payment increase, not a payment crisis.
What the increase looks like in dollars
Take a common Brampton case. The family borrowed $500,000 in September 2021. Their rate was 1.99% fixed for five years, on a 25-year amortization. Here’s what renewal looks like this month at a mid-range broker rate.
| Amount | |
|---|---|
| Original mortgage, September 2021 | $500,000 at 1.99%, 25-year amortization |
| Monthly payment for the last five years | $2,115 |
| Balance at renewal, September 2026 | $418,763 |
| New payment at 4.39% over the remaining 20 years | $2,616 |
| Increase | $501 a month, or about 24% |
That’s roughly $500 more every month before property taxes or insurance move at all. The Bank of Canada’s average is lower, around 15%, because not everyone locked in at the very bottom. But if you did, this is your number. It explains why the smart renewers are calling us in September rather than waiting for the letter.
Mortgage renewal rates in Canada right now
These are the rates as of September 16, 2026 from our Ontario mortgage rates page, which we update from live lender rate sheets.
| Term | Best broker rates | Big-bank rates |
|---|---|---|
| Five-year fixed | 4.14% to 4.69% | 4.51% to 4.59% |
| Three-year fixed | 4.09% to 4.64% | 4.29% to 4.74% |
| Five-year variable | 3.50% to 3.96% | 3.65% to 4.53% |
Prime sits at 4.45%. That follows the Bank of Canada’s decision on September 2 to hold its policy rate at 2.25%. The next rate decision is October 28, 2026.
Bank renewal letters rarely open with the best number. The gap between a first offer and a negotiated rate is often half a percent or more. On a $400,000 mortgage, half a percent is worth roughly $100 a month. Over a five-year term that’s about $6,000.
Your renewal timeline, step by step
120 days out: lock a rate hold
Most lenders let you hold a rate for up to 120 days. A broker can secure a hold with a new lender while your current bank prepares its offer. If rates fall before closing, you take the lower rate. If they rise, you’re protected. There’s no cost to hold.
21 days out: the renewal statement
Federally regulated lenders must send you a renewal statement at least 21 days before the end of your term, a rule explained by the Financial Consumer Agency of Canada. They must also give you 21 days of notice if they won’t renew you. Three weeks is not enough time to shop properly, so treat the letter as a confirmation, not a starting gun.
Maturity day: sign, switch, or get auto-renewed
If you don’t respond, many lenders renew you automatically. The agency’s guidance warns that an automatic renewal may not get you the best rate. Some lenders default you into a short term at a posted rate. That’s the expensive path, and it’s the one most people take by accident.
Staying with your lender or switching
Since November 21, 2024, a straight switch of an uninsured mortgage no longer has to pass the stress test. The change came from the Office of the Superintendent of Financial Institutions, the federal bank regulator, and the details are on its minimum qualifying rate page. A straight switch means the same balance and the same remaining amortization, just a different lender. Insured mortgages never needed the test at switch. So the old excuse for accepting a bad renewal, “I won’t qualify anywhere else,” is mostly gone.
What still triggers a full qualification: borrowing more, stretching the amortization, or adding a home equity line. Those are refinances, not switches, and lenders qualify them at the higher stress-test rate. We covered the mechanics in How to Switch Mortgages Without a Stress Test in 2026.
Switching does carry costs. The agency lists discharge, registration, transfer and appraisal fees, plus administration charges. In our experience most new lenders cover the bulk of these to win the file. When they don’t, the total usually lands between $500 and $1,500. A better rate recovers that within months.
Can you be denied at renewal?
Yes, but it’s rare if your payments are current. Lenders don’t re-qualify existing borrowers who’ve paid on time. A refusal usually follows missed payments, tax arrears, a lapsed insurance policy, or a property that’s changed use. If that letter arrives, you have 21 days of notice and real options. Our full guide: Mortgage Renewal Denied? What Ontario Homeowners Can Do Next.
Credit checks, fees and the fine print
Renewing with your current lender usually means no credit check and no fee. Switching lenders means a credit check and a normal application, with income documents. A rate hold doesn’t hurt your credit. Missed payments in the last year are the one thing that does.
Ask about the early renewal window in writing. Many lenders let you renew in the final months of the term without a penalty, especially if you stay with them. And check the prepayment terms on the new mortgage before you sign, because the penalty formula matters far more than the rate if you sell or refinance mid-term.
Fixed, variable, or a shorter term?
Variable rates are the cheapest on paper right now, with the best offers near prime minus 0.95%. The catch is that the Bank of Canada has flagged higher inflation risk from energy prices and new U.S. tariffs, so the next move isn’t guaranteed to be down. Fixed rates give you a known payment for the whole term. A three-year fixed costs about the same as a five-year today and gives you an earlier exit if rates fall.
There’s no universal answer. A household with a thin budget usually needs the fixed payment. A household with room to absorb a bump can take the variable discount. We’ll run both sets of numbers for you in one call.
What to do now
- Find your maturity date and mark the day that falls 120 days before it.
- Pull your current balance, rate and remaining amortization from your lender’s portal.
- Get a rate hold from a broker before your bank sends its letter.
- When the letter arrives, compare it against the hold, not against your old rate.
- Ask your bank to match. If it won’t, switch.
- Sign something at least two weeks before maturity so nothing renews by default.
How we handle renewals at CMS
Canadian Mortgage Services has been arranging mortgages in Brampton and across Ontario since 1988. Our renewal service is simple. We quote you the best rate from more than 40 lenders, then you take that number back to your bank or let us move the file. For a prime-lender renewal or switch you don’t pay us a fee, because the lender does. Call 905-455-5005 and we’ll tell you in about 15 minutes whether your bank’s offer is competitive.
Related reading
- Payment Shock at Renewal: Managing a Big Mortgage Increase in 2026
- Is the Mortgage Renewal Crisis Ending? What the BoC Says
- How to Handle a Mortgage Renewal Near Retirement in 2026
- Penalty for Breaking a Mortgage: How Much Does It Cost?
Frequently Asked Questions
How early can I renew my mortgage in Canada?
Lenders usually open an early renewal window in the last 120 days of the term, and a broker can hold a rate with a new lender for the same period. Starting four months out gives you time to compare offers without pressure.
Does the mortgage stress test apply to renewals?
Not if you stay with your lender, and since November 21, 2024, not for a straight switch of an uninsured mortgage either. You face the test only if you borrow more or extend the amortization.
Can a bank refuse to renew my mortgage?
A lender can refuse, but it is uncommon when payments are current. Federally regulated lenders must give you 21 days of notice if they will not renew. Missed payments, tax arrears or a change in how the property is used are the usual reasons.
What happens if I ignore my renewal letter?
Many lenders renew you automatically, often into a short term at a posted rate. The Financial Consumer Agency of Canada warns that an automatic renewal may not give you the best rate. Sign something before maturity so the choice stays yours.
Is there a fee to switch lenders at renewal?
Discharge, registration, appraisal and administration fees can apply, and most new lenders cover the bulk of them to win your file. When they do not, the total usually falls between $500 and $1,500, which a better rate recovers within months.
Is it better to take a shorter term in 2026?
A three-year fixed costs about the same as a five-year fixed right now and gives you an earlier exit if rates fall. It suits people who expect to move or refinance. A five-year term buys certainty for a tight budget.
About the Author: Neil Drepaul in
Neil Drepaul is a Broker and Director at Canadian Mortgage Services. Licensed since 2012, Neil brings a strong entrepreneurial spirit to every client interaction. He specializes in helping homeowners and buyers find mortgage solutions that fit their real-life goals, not just their paperwork. His approach is straightforward: serve others first, and success follows.
