The year 2026 will mark a turning point for many homeowners. According to the Bank of Canada, nearly one in two Canadians will need to renew their mortgage, and about 60% of borrowers will see their payments increase. This situation particularly affects those who took advantage of historically low interest rates during the pandemic.
To shed light on the issue, Véronique Caron, mortgage broker at Multi-Prêts, shared her perspective on Radio-Canada OHdio regarding what households are experiencing and the strategies that may be available.
Renewals already underway… and informed clients
Contrary to some concerns, many homeowners are approaching their renewal well prepared. “Clients know there will be a change in their payment,” explains Véronique Caron. Some had already anticipated this increase and adjusted their budgets, while others are now realizing its real impact on their finances.
Adjusting amortization to regain balance
When a higher payment becomes more difficult to absorb, several options can be considered. Extending the amortization period to 25 years, or even 30 years in some cases, can help reduce monthly payments, even though it means paying more interest over the long term.
This flexibility is particularly useful in certain life situations, such as a separation, buying out a partner, or a significant increase in housing prices. Even if borrowers were previously qualified, becoming a sole owner or buying out a share can make renewal more complex.
In some cases, this approach can also be combined with accelerated bi-weekly payments, which helps better control the actual length of the mortgage while still maintaining short-term financial flexibility.
Fixed, variable, 3-year or 5-year: there is no one-size-fits-all solution
Once very popular, five-year fixed mortgages are no longer automatically the default choice. “It all depends on the budget, but also on the plans related to the property,” notes Véronique Caron, whether it involves renovations, using home equity, paying down debt, or future projects.
As a result, strategies today are more diverse. Variable rates, three-year fixed terms, or five-year fixed terms—the right choice depends primarily on the client’s needs, rather than a general trend. It is also important to keep in mind that posted online rates do not always reflect the reality of a renewal, as they often apply to insured mortgages, such as those for first-time buyers.
Shopping for your mortgage, even at renewal
Renewing is not simply about signing the offer provided by your bank. “A mortgage is often the biggest investment of a lifetime,” notes Véronique Caron. Comparing options helps ensure you secure a product and terms that truly fit your situation.
A mortgage broker has access to a wide range of offers on the market, and if the best option is with your current lender, they will tell you that as well.