Office 289-505-0631  ·  Direct 647-291-7116 Rajiv Verma, Mortgage Broker · Mortgage Architects · FSRA Licence #12728

Renewing in 2026? What to do if your payment is about to jump

Many homeowners who locked in during 2020–2021 are renewing into higher rates. Here’s how to soften the increase and avoid overpaying your bank.

A large wave of Canadians who locked in low five-year fixed rates during 2020 and 2021 are now hitting renewal — often at meaningfully higher rates. If your renewal letter is coming, a little planning can make a real difference to your payment.

Why payments are rising at renewal

If you signed at the historically low rates of 2020–2021, renewing at today’s rates naturally means a higher payment. The exact increase depends on your balance, rate, and amortization — but for many households it’s significant enough to plan around rather than absorb by surprise.

This post is about the 2026 renewal wave specifically. For how renewals work generally — switching, requalifying, fixed versus variable, and what happens if your situation has changed — the renewal centre answers each of those on its own page.

Don’t just sign the bank’s letter

Your lender’s renewal offer is rarely their sharpest rate. At maturity you’re free to switch lenders — often penalty-free — so the whole market is open to you. The full answer on whether to just sign is here.

Ways to soften a higher payment

  • Shop the market: even a modest rate improvement adds up over a five-year term.
  • Extend the amortization: stretching the remaining amortization can lower the monthly payment (you pay more interest over time, but it eases cash flow now).
  • Consolidate high-interest debt: rolling in 20%+ credit-card debt at renewal can free up more cash than the rate increase costs.
  • Refinance strategically: if it fits, a refinance can restructure everything at once.

Start early

Begin 4–6 months before your maturity date so I can hold a rate, compare lenders across the market, and complete any switch without a rush. The earlier we start, the more we can do.

Renewal coming up?

Send me your maturity date and I’ll benchmark your renewal against the whole market — free.

Talk to Rajiv — free

By Rajiv Verma, Mortgage Broker · Mortgage Architects — FSRA Brokerage Licence #12728 · Licensed in Ontario · Office 289.505.0631 · Direct 647.291.7116. General information, not financial advice. Position stated as at August 2026 — rates and lending rules change; confirm current limits before acting.