1 Million Canadian Homeowners Face Challenging Mortgage Renewals

Approximately one million Canadians are scheduled to renew their mortgages in 2026, facing a significantly higher interest rate environment compared to the lows seen during the pandemic era.

According to analysis from mortgage comparison platform Ratehub.ca, borrowers renewing five-year fixed mortgage terms in April 2026 can expect to pay an average of $622 more per month. This represents a 24 per cent increase in monthly payments, amounting to an additional $7,464 over the course of a year.

The estimate is based on a mortgage balance of $537,313 and a renewal rate of 4.04 per cent, which is currently the best renewal rate available. Here’s a sharp increase from the lowest rates available in 2025, which stood at 1.68 per cent.

Interest Rate Disparities

Current fixed-rate pricing is approximately 265 basis points higher than pandemic-era lows. While the lowest five-year insured fixed option is now 4.04 per cent, the lowest five-year variable rate stands at 3.35 per cent, which is 236 basis points higher than previous lows.

Penelope Graham, a mortgage expert at Ratehub.ca, noted that the impact is most pronounced for those renewing five-year terms.

The reality for many renewing mortgage borrowers is that today’s interest rate environment is higher than when they first took out their financing and paying more per month is unavoidable

Penelope Graham, Ratehub.ca

In contrast, variable-rate mortgage holders have already absorbed much of the financial shock. Because their rates fluctuate in alignment with the Bank of Canada’s benchmark overnight lending rate, these borrowers experienced increases throughout their term rather than a single sharp jump at renewal.

Homeowner Resilience and Financial Strain

Despite the rising costs, many Canadian homeowners continue to meet their obligations. A survey conducted by True North Mortgage, published April 2, 2026, found that 83 per cent of Canadians reported they have never missed a mortgage payment.

However, the survey indicates that financial flexibility is tightening. Approximately 36 per cent of mortgage holders stated they found it challenging to make payments over the past year. While 73 per cent of homeowners reported being comfortable with their payments, 19 per cent indicated they could face difficulty if their financial situation changes, and 8 per cent said they are already struggling and adjusting their spending.

Dan Eisner, CEO of True North Mortgage, stated that while homeowners generally remain prepared to meet obligations, they are doing so amidst rising costs for credit and groceries.

Market Pressures and Bank Flexibility

External geopolitical factors are continuing to influence the lending landscape. Concerns regarding inflation in bond markets, driven by the war in the Middle East, have pushed five-year fixed mortgage rates higher by roughly 40 basis points in the weeks leading up to April 10, 2026.

To mitigate the risk of widespread defaults, banks are offering more flexibility during the renewal process than in previous cycles. One such option includes lengthening a client’s amortization period to help manage the increase in monthly costs.

The Canada Mortgage and Housing Corporation has estimated that 1.5 million Canadians have already renewed their pandemic-era mortgages as the industry navigates this transition to higher rates.