Why 2026 Is Different
A huge block of Ontario mortgages was written during the ultra low rate window and is now hitting its first real renewal at today's pricing. Even with rates off their peak, many households are moving from a rate that started with a one to one that starts with a four. That is a genuine payment change, and it deserves a plan rather than a signature on the first letter your bank mails you.
Signing the Renewal Letter Is the Expensive Choice
Your existing lender knows most people renew out of inertia, so the first offer is rarely their best. Shopping the market at renewal is free, does not require a new appraisal in most cases, and regularly finds a rate that is meaningfully better. On a $650,000 balance, a small rate improvement is real grocery money every single month.
Options Beyond Just the Rate
Renewal is also the one moment you can restructure without a penalty, which means extending amortization, folding in high interest debt, or adding a home equity line for flexibility. Some families are better served by a lower payment over a longer runway than by chasing the last few basis points. Start the conversation four to six months before your maturity date so you have time to use those options.
Frequently Asked Questions
How early should I start my mortgage renewal in Ontario?
Start four to six months out. Most lenders will hold a rate for you during that window, which means you are protected if rates rise and can still move lower if they fall.
Does switching lenders at renewal cost money?
A straight switch at maturity usually costs little or nothing because many lenders cover the legal and appraisal fees to win your business. Costs appear when you break a term early or increase the loan amount.
What if I cannot afford my new renewal payment?
Talk to a broker before you miss a payment. Extending the amortization, consolidating other debt into the mortgage, or moving to a lender with more flexible guidelines can bring the payment back into range.
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