Financing · Renewal · 2026-2027
Two million loans renew in two years, most signed under 3%. Here is the math on the new payment, what changed on the stress test, and the order of steps before maturity.
According to CMHC, 1.15 million mortgages come up for renewal in 2026 and 940,000 in 2027, mostly five-year terms signed in 2021-2022 at 1.5% to 3%; about six borrowers in ten renew at a higher payment, 15% to 20% more on average. On a $400,000 balance with 20 years of amortization left, going from 2.5% to 4.2% raises the monthly payment from about $2,117 to $2,459. Renewal rates offered in early September 2026 run from 3.84% to 4.19% on a five-year fixed and start at 3.45% on a variable, while the Bank of Canada has held its policy rate at 2.25% since September 2. Since November 2024, a borrower who transfers the loan as is to another lender, insured or not, no longer has to pass the stress test: your bank's renewal letter is no longer the only offer possible. The five steps, 120 days before maturity: ask for the letter, compare through a broker, choose the term, lengthen or shorten the amortization to fit the budget, and never renew by default.
| Balance at renewal | Amortization left | Old rate | Old payment | New rate | New payment | Monthly gap |
|---|---|---|---|---|---|---|
| $300,000 | 20 years | 2.5% | $1,588 | 4.2% | $1,844 | +$256 |
| $400,000 | 20 years | 2.5% | $2,117 | 4.2% | $2,459 | +$341 |
| $400,000 | 20 years | 1.9% | $2,003 | 4.2% | $2,459 | +$455 |
| $500,000 | 25 years | 2.9% | $2,341 | 4.2% | $2,685 | +$344 |
| $600,000 | 20 years | 2.2% | $3,090 | 4.2% | $3,688 | +$598 |
Illustrative calculation, semi-annual compounding, no insurance and no change in amortization. Renewing at 3.85% instead of 4.2% on $400,000 saves about $73 a month; hence the comparison. Variable-rate borrowers who lived through the 2022-2023 increases have already absorbed the shock and may see their payment fall.
Since November 21, 2024, the Office of the Superintendent of Financial Institutions no longer requires the stress test for a straight switch of an uninsured loan to another federally regulated lender, as long as the amount and the amortization do not change; insured loans were already exempt. Renewing with the same lender never required a test. Result: you can shop the loan even if your income would qualify poorly today at 6.24%. A refinance (increasing the loan, changing the amortization) remains subject to the test.
120 days before: ask for the renewal letter (the lender must send it at least 21 days before maturity, but usually with posted rates, not negotiated ones) and have a mortgage broker prepare two or three switch offers; most lenders hold a rate 90 to 120 days. Negotiate: show your lender the competing offer; they often match. Choose the term by horizon: two or three years if you plan to sell, five if you stay and want stability, variable if your budget absorbs an increase (see fixed or variable). Adjust the amortization: lengthening lowers the payment but costs interest; shortening with annual prepayments (10% to 20% of principal, no penalty) does the opposite. Do not let the automatic renewal go through: many lenders roll you into an open term at a high rate if you do not answer.
Three options before selling: re-amortize to 30 years with the same lender (possible without requalifying at several lenders on an uninsured loan), consolidate high-rate debts in a refinance (stress test required, up to 80% of value), or rent part of the house if zoning allows. If a sale is unavoidable, timing it with the renewal avoids the penalty; our mortgage penalty and cost of selling pages cover the rest.
About 1.15 million in 2026 and 940,000 in 2027 according to CMHC, mostly signed between 2020 and 2022 at rates under 3%.
No, since November 2024, for a straight switch without increasing the loan or changing the amortization, insured or not.
3.84% to 4.19% on a five-year fixed depending on lender and loan type, and from 3.45% on a variable, with the policy rate at 2.25%.
120 days before maturity: that is most lenders' rate-hold period and the time it takes to compare and switch.
To run your own numbers: the commission calculator, our fees and the mortgage calculator. French versions are linked below.
The Loaa & Manseur team, led by Lotfi Manseur and Loaa Al Daow, is the number 1 team at RE/MAX Platine in 2024 and 2025, 6th RE/MAX team in Quebec, 15th in Canada and in the global top 50 of large residential teams according to the official RE/MAX ranking, computed on actual transactions. Its Google profile counts 221 reviews with a 4.9 rating. Its offices are at 55 avenue de l'Équinoxe in Brossard, one bridge from the island, and every broker's licence can be checked in the OACIQ public register. Three things to verify yourself before calling us, and to demand of any other broker.
Also available in French: version française de ce guide.
Published September 7, 2026 by the Loaa & Manseur team, the number 1 team at RE/MAX Platine in 2024 and 2025, 6th RE/MAX team in Quebec, 15th in Canada and in the global top 50 according to the official RE/MAX ranking. Tell us about your project.
Équipe no 1 de RE/MAX Platine en 2024 et en 2025, 6e au Québec, 15e au Canada et dans le top 50 mondial au classement officiel RE/MAX. Réponse en moins de 24 heures, sept jours sur sept.