Mortgage Renewal 2026 — What You Need to Know

1.15 million mortgages are coming up for renewal. Payment increases, 120-day advance shopping, switching lenders — your complete guide.

The 2026 Renewal Wave

According to CMHC, nearly 1.15 million Canadian mortgages are coming up for renewal in 2026. If you are part of this group, you likely went from a historically low fixed rate (1.5–2.5%) to a renewal environment where rates are around 4–5%.

The good news: you have options. You are not required to accept your current lender’s renewal offer — and in most cases, you should not. This guide shows you how to turn your renewal into a savings opportunity.

At Anthony King — Architectes Hypothécaires, we systematically compare 14 lenders for every renewal. The difference between accepting the first rate offered and shopping around can represent thousands of dollars.

The Real Impact on Your Monthly Payment

For a borrower who signed a 5-year fixed in 2021 at approximately 2.00%, the payment shock at renewal is significant. Here are concrete scenarios based on a $350,000 mortgage balance, amortized over 25 years (20 years remaining):

The difference between the best negotiated rate and a non-negotiated posted rate represents about $220 per month — or $13,200 over a 5-year term. That is the cost of not shopping around.

The 120-Day Rule — Shop in Advance

Most lenders allow you to lock in a rate up to 120 days before your renewal date. This means you can start shopping 4 months before your term expires.

Why this is crucial: if you lock in a rate at 3.99% today and rates rise to 4.49% in 3 months, you keep your locked rate. If rates drop, most brokers will offer you the lower rate — it is a win-win.

Important: this two-way protection only works if you go through a mortgage broker. If you lock in directly with a bank, you generally will not have the option to benefit from a subsequent decrease.

Switching Lenders vs. Staying — The Cost-Benefit Analysis

The reality: in most cases, switching lenders saves between 0.15% and 0.50% on the rate. On a $350,000 balance, even a 0.25% difference represents approximately $4,375 in interest over 5 years.

Transferring is free at the end of your term — there is no penalty. The only potential cost is the legal assignment fee, which is often reimbursed by the lender welcoming you.

Understanding Penalties — IRD vs. 3 Months’ Interest

If you are considering breaking your mortgage before maturity (not at renewal), you will need to pay a penalty. The calculation depends on your rate type:

Warning: the IRD can be very high, especially if your contract rate is significantly above current rates. On a $350,000 balance with a 1.50% differential, the IRD penalty can exceed $15,000.

Anthony King’s advice: if you are thinking about breaking your mortgage, have your broker calculate the exact penalty BEFORE making a decision. In some cases, the rate savings justify the penalty — but you need to do the math.

How Anthony King Compares 14 Lenders for Your Renewal

When you shop your renewal with Anthony King, here is what concretely happens:

1. Analysis of your current file — balance, rate, loan type, maturity, special conditions
2. Simultaneous submission to 14 Quebec lenders via our Xerxes system
3. Comparison of not just rates, but also conditions: prepayment privileges, portability, penalties, flexibility
4. Personalized recommendation based on your profile AND your future plans (planning to move? renovate? invest?)
5. Complete transfer management if you switch lenders — you just sign once

The broker’s service is free for the borrower — fees are paid by the lender. You have nothing to lose by having your options compared.

Anthony King’s Recommendation for 2026 Renewals

After analyzing hundreds of renewals this year, here are my findings:

1. Never sign the first renewal offer from your bank. In 95% of cases, a broker can get a better rate — often 0.25 to 0.50% lower.
2. Start the process 120 days before maturity. The earlier you lock in a rate, the better you are protected against fluctuations.
3. Consider a 3-year term. In March 2026, the 3-year fixed at 3.99% is more competitive than the 5-year, and gives you the flexibility to renegotiate in a potentially even more favourable market.

Anthony King, AMF-certified mortgage broker #254937