Mortgage renewal: Why you should act before October 28
If your mortgage is coming up for renewal in the next few months, now is the time to take care of it. According to the Bank of Canada, approximately 60% of outstanding mortgages across the country will be renewed in 2026. And yet, according to a TD survey, nearly 7 in 10 homeowners say they’re worried about their upcoming renewal.
Where do rates stand?
The Bank of Canada’s policy rate is 2.25%. It was held at the September 2 decision, marking a seventh consecutive pause. The next announcement is scheduled for Wednesday, October 28, along with the Monetary Policy Report, followed by the last one of the year on December 9.
What changes the picture is that markets are starting to consider a possible increase rather than a decrease. No one can predict the decision with certainty, and even economists don’t agree. But that uncertainty is precisely a good reason not to wait until the last minute.
Payments are often higher
For borrowers renewing in 2026, the average monthly payment could increase by about 6% compared with December 2024. Among those who expect to pay more, more than half plan to cut back on spending, and nearly 4 in 10 are considering dipping into their savings or reducing their investments.
The most striking finding in the survey: only 9% of respondents plan to start the process early with their lender or broker. Yet it’s generally possible to lock in a rate up to 120 days before your maturity date, protecting you if rates rise.
My tips to help you prepare
1. Note your maturity date. Check your lender’s annual statement. Set a reminder for 150 days before your maturity date.
2. Don’t sign the first offer you receive. The renewal offer from your current institution is rarely the best one. Comparing offers takes little time and could save you thousands of dollars over the term.
3. Review your budget. Calculate what your payment would be at a rate 0.5 or 1 percentage point higher. If the result worries you, it’s better to know now.
4. Compare products, not just rates. Fixed or variable, 3- or 5-year term, prepayment penalties, prepayment options: a lower rate may come with less flexible terms. Nearly two-thirds of homeowners are aiming for a fixed rate, but the best choice depends on your situation and risk tolerance.
5. Consider your amortization period. Extending the amortization period can lower your monthly payment, but increases the total interest cost. It’s a tool to use judiciously.
The right time to talk
A mortgage broker has access to multiple lenders and can compare offers for you, at no cost in the vast majority of cases. The sooner you contact us, the more room we have to negotiate and lock in a rate.
Is your renewal coming up? Write to me or book an appointment: reviewing your situation takes little time and can help you avoid a lot of surprises.
Rates and Bank of Canada decisions change quickly. This information is general in nature and does not constitute personalized advice.