Your mortgage renewal in 2026: the payment shock
About 1.2 million Canadian households renew this year — many from rates near 2% into today's ~4–5%. See your payment shock, then soften it with the game plan below.
Quick answerIf you locked in below 3% and renew at today's rate, your monthly payment can jump hundreds of dollars. Enter your balance and rates below to see the exact increase — and use the steps to shop, switch without a new stress test, or adjust your amortization to cushion it.
Your payment shock
+$0/mo
Enter your numbers to see the jump.
New payment$0/mo
Old payment$0/mo
Extra per year$0
Illustrative estimate at a fixed rate over your remaining amortization — not a quote. Your actual renewal offer, rate and payment will differ.
Your renewal game plan
1Don't sign the first letter.Your lender's renewal offer is rarely their best rate. Auto-renewing is the single most expensive habit — shop it.
2Use the no-stress-test switch rule.
Since late 2024 you can switch lenders at renewal without re-passing the stress test (same amount & amortization) — so you can shop the whole market. Full renewal guide →
3Weigh fixed vs variable.
With the Bank of Canada at 2.25% and possibly easing, the fixed-vs-variable call matters more than usual. Compare →
4Consider extending amortization.Stretching the remaining amortization lowers the monthly payment (you pay more interest over time) — a cushion if the shock is too steep.
5Negotiate, or use a broker.Even 0.2–0.3% off the rate saves thousands over the term. A broker shops multiple lenders for you at no cost.
Frequently asked questions
What is mortgage payment shock?
The jump in your monthly payment when your term ends and your old rate resets to today's higher rate. Renewing from ~2% into ~4.5% can add hundreds a month.
Can I switch lenders without the stress test?
Yes — since November 2024, borrowers switching lenders at renewal without increasing the loan amount or amortization are exempt from re-passing the stress test. That lets you shop freely.
How do I lower the payment?
A lower rate, a longer amortization, or a lump-sum payment before renewal all reduce the monthly amount. See how to lower your payment.
More rate & mortgage tools
Sources: Bank of Canada — policy rate; switch-at-renewal stress-test rule per OSFI/Dept. of Finance (Nov 2024). Figures illustrative, not advice; reviewed 6 Jul 2026.
Independent & not affiliated. bankratecanada.ca (Overnight) is not affiliated with the Bank of Canada or any lender. All figures are illustrative estimates — not quotes, and not financial advice. Confirm your renewal terms with a licensed mortgage professional. See our
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