In short
At renewal, your balance rolls over at the market rate — often well above 2020-2021 rates. As an example, $400,000 renewed from 2.4% to 5.0% over 20 remaining years: the payment goes from about $2,100 to $2,640 — nearly $540 more a month (~$6,500/yr). You are not required to sign your bank's offer: switching is your right, often without a new stress test since late 2024 — shop 4 to 6 months before maturity.
Why 2026 is a heavy renewal year
In 2020 and 2021, mortgage rates hit historic lows — five-year fixed rates below 2% were common. Those terms are now maturing, into a market where rates have risen sharply. Renewal does not erase your mortgage: it rolls it over at the current rate, on the balance you have left. At a comparable balance, the payment jumps — that is the "payment shock", and this year it hits a particularly wide wave of Canadian homeowners.
As an example: a $400,000 balance renewed from 2.4% to 5.0% over 20 remaining years goes from about $2,100 to $2,640 a month — nearly $540 more, about $6,500 a year. The calculator below runs the math with your numbers. The good news: renewal is also the best moment to take back control — no penalty, everything renegotiates.
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Standard amortization calculation, for guidance only. Excludes insurance, taxes and fees. For your real figures and options, have your file assessed.
You are not captive: shop before you sign
The renewal offer your lender mails you is rarely its best — it is often the posted rate, betting on your inertia. At maturity, moving your mortgage to another lender is your right, and that is often where the best terms are. The detail that changed everything: since late 2024, a straight switch at renewal — without increasing the amount or the amortization — no longer requires the stress test in many cases. The door to look elsewhere is more open than before.
The timeline that works: start 4 to 6 months before maturity. That is the time needed to compare several lenders, lock a rate (most renewal holds last 90 to 120 days — if rates rise you are protected; if they drop, you take the lower one), build the file and trigger the switch without stress. Signing the mailed offer in April for a May maturity is shopping without leverage.
Five levers to soften the shock
1. Compare lenders. Half a point on a large balance is thousands of dollars over the term — and the straight switch is easier than before. 2. Extend the amortization. Restarting on a longer amortization lowers the payment, at the cost of more total interest — an oxygen tank, to be dosed. 3. A lump-sum payment before maturity. Reducing the balance just before renewal reduces the base the new rate applies to. 4. Blend-and-extend, sometimes worthwhile even before maturity — have it quantified. 5. Revisit type and term: fixed or variable, short or long term — renewal is the ideal moment to realign the mortgage with your real horizon (possible sale? retirement? a project to finance?).
Each of these levers has a different cost and effect depending on your contract and situation — exactly the trade-off a mortgage broker quantifies with you before you sign anything.
Frequently asked questions
Do I have to sign my bank's renewal offer?
No. At maturity, you are free to move your mortgage to another lender, often on better terms — and since late 2024, a straight switch (without increasing the amount or the amortization) no longer requires the stress test in many cases. Start shopping 4 to 6 months before maturity.
How much can my payment rise at renewal?
It depends on the rate gap and your balance. As an example, $400,000 going from 2.4% to 5.0% over 20 remaining years: the payment climbs from about $2,100 to $2,640 — nearly $540 more per month. Use this page's calculator for your own case.
When should I start preparing my renewal?
Four to six months before maturity. Most lenders can hold a rate for 90 to 120 days: if rates rise before your maturity, you are protected; if they drop, you take the lower one. Starting late means negotiating without leverage.
How can I reduce the shock if my payment climbs too much?
Five levers: compare lenders, extend the amortization, make a lump-sum payment before maturity, negotiate a blend-and-extend, or revisit the type and term of the loan. Each has a different cost and effect — have them quantified together, not in isolation.
Straight-switch rules and rate-hold practices in force in 2026 — they vary by lender: confirm your case with a licensed professional.
Go further
Maturity coming up? Do not sign the first offer
Having a renewal reviewed usually costs nothing and can reveal better terms elsewhere. Payotte verifies only one mortgage broker per sector, on facts.
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