A major shift is coming for Canadian homeowners. In 2026, a significant share of mortgages that were locked in during the ultra-low-rate years of 2020-21 will reach renewal. For many, this will mean facing today’s higher-rate reality for the first time, and the financial impact could be substantial.

As a trusted partner in the home financing journey, Homewise wants to help Canadians understand what’s ahead and how early preparation can soften the transition.

Why 2026 will be a critical renewal year

The Canadian mortgage market is entering a period of accelerated renewal volume. Many homeowners secured five-year fixed mortgages during the peak of the pandemic’s low-rate environment. Those terms now expire in 2026, setting up what industry analysts have called a “renewal wave.”

Key expectations for 2026 include:

• Payment increases for many fixed-rate borrowers who initially locked in at historically low rates.
• More variability in payment changes depending on mortgage type, term, and amortization.
• Pressure on household budgets, especially for families already balancing inflation and rising living costs.
• A more competitive lending environment, as financial institutions adjust their offerings to attract renewing borrowers.

In short, 2026 will not be business as usual for renewals, and homeowners should begin preparing long before their renewal date arrives.

What this means for homeowners

For most Canadians renewing next year, the financial picture will look different from the one they locked in five years ago. Monthly payments may rise, and the overall cost of borrowing will likely be higher than what they have become
accustomed to.

However, there’s also an opportunity. A renewal is not just the end of a term, it’s a moment to rethink your mortgage strategy, compare options and align your financing with your goals. Whether your priority is lowering payments, becoming mortgage-free sooner, or unlocking equity, 2026 can be a chance to reset your path.

How an unbiased mortgage broker/agent helps Canadians get ahead of renewal stress

Here’s how brokers and agents, (such as ours at Homewise) are a great place to go when mortgages are up for renewal:

1. Early renewal planning
   They help you map out your renewal strategy months in advance. No last-minute scrambling, just clarity and control.
2. Rate shopping across lenders
   Instead of accepting your lender’s first offer, they compare options from a network of institutions to find terms that best fit your financial situation.
3. Personalized advice
   They take the time to understand your goals. Should you switch to a shorter or longer term? Consider variable? Adjust amortization? They help you make informed, confident decisions.
4. Strategic timing
   If rates improve leading into 2026, they help you lock in at the right moment. If waiting could benefit you, we provide guidance tailored to your timeline.
5. Stress-test planning
   They help you model what different payment scenarios could look like, so even if payments rise, you’re ready.

What homeowners should do now

To navigate the 2026 renewal wave smoothly, consider taking these steps today:

• Confirm your renewal date and set a reminder at least six to 12 months ahead.
• Review your financial goals are you looking to lower payments, speed up mortgage freedom or free up equity?
• Assess your current mortgage details, including rate, amortization and remaining balance.
• Connect with a mortgage advisor early, not weeks before renewal, four to six months.
• Build a conservative budget, preparing for the possibility of higher payments.

A little preparation now can mean thousands saved later.

The bottom line

2026 will be a defining year for Canadian homeowners as the renewal wave arrives. While many will face higher costs, those who plan strategically have the chance to turn a difficult moment into a financially empowering one.

Renewal doesn’t have to be stressful. With the right support, it can be an opportunity for savings and strong financial decisions.