Renewing your mortgage in 2026? Don't sign the first letter.

About 1.15 million Canadian households renew their mortgage in 2026, one of the largest renewal waves in the country's history. Many five-year fixed renewers are facing payment jumps of 15 to 20 percent. The single most expensive thing you can do right now is renew on autopilot.

The letter your bank mails you is not their best offer

When your term ends, your lender sends a renewal letter with a rate and a signature line. It feels official and easy. It is also almost never their best rate. The bank is betting on your inertia, that you will sign rather than shop. Roughly 56% of mortgage holders now plan to explore switching at renewal, and for good reason.

On a $600,000 mortgage, moving from a 5.25% posted rate to a 4.60% discounted rate saves about $3,900 a year, close to $19,500 over a five-year term. That is the cost of signing the first letter.

The 2026 rule change that finally favours you

As of November 2024, OSFI removed the requirement to re-qualify under the federal mortgage stress test when you switch lenders on a straight renewal, as long as your mortgage amount and amortization do not change. Both insured and uninsured borrowers benefit.

In plain terms: at renewal you can now shop the entire market and move to a better lender without the test that used to trap you with your current bank. The leverage has shifted to you. Use it.

How to renew like someone who reads the fine print

• Start 120 days early. Most lenders will hold a rate up to four months before your renewal date, so you can lock a good rate while you shop.
• Never auto-renew. Treat the mailed offer as the opening bid, not the final one.
• Get competing quotes. Compare your bank, an online bank, a credit union, and a monoline. Make them compete.
• Run the whole-household math. If the new payment strains your budget, a different term or amortization may serve you better than chasing the lowest headline rate.