Your Mortgage Is Renewing in 2026? Here's How to Handle the Payment Shock

By Lyndsy Pahl, Licensed Mortgage Broker · Serving British Columbia & Alberta · June 2026

If you locked in your mortgage back in 2020 or 2021, you probably remember the rate. It was low - maybe the lowest you'll ever see in your lifetime. And if that mortgage is coming up for renewal this year, you've likely been bracing yourself for the new one.

I want to start with some reassurance: yes, your payment will probably go up from those pandemic lows. But the picture in mid-2026 is a lot friendlier than the one a lot of people feared a couple of years ago. Let's walk through what's actually happening and what you can do about it - in plain language, no scare tactics.

Why this renewal feels different

Millions of Canadians took out or refinanced mortgages during 2020 and 2021, when rates were at historic lows. Those terms are now maturing. Coming off a sub-2% fixed rate onto today's rates is a real jump, and it's the reason "renewal" has become such a loaded word lately.

Here's the good news that doesn't always make the headlines: rates have come down meaningfully from their 2023-2024 peak. The Bank of Canada's policy rate now sits at 2.25%, well below where it was at the top of the cycle. So while you may be moving up from your pandemic rate, you're renewing into a far gentler environment than someone who renewed two years ago.

Don't just sign the renewal letter your bank sends you

This is the single most important thing I can tell you. When your renewal date approaches, your current lender will mail you a renewal offer. It's tempting to sign it - it's easy, it's one page, and it feels done.

But that offer is built around their products, not the whole market. As your broker, I compare offers across many lenders - banks, credit unions, and more - to find the rate and terms that fit you. Even a small difference in rate can add up to tens of thousands of dollars over the life of your mortgage. A renewal is the easiest moment to shop, because you're not buying or selling anything - you're simply choosing where your mortgage lives next.

A renewal is also a chance to fix things

Renewal time isn't only about the rate. It's a natural checkpoint to look at your whole financial picture. I often find that a small restructure at renewal can save a client thousands. A few questions worth asking:

• Has your income or family situation changed since you last set up this mortgage?
• Are you carrying higher-interest debt that could be rolled in to lower your overall monthly cost?
• Would a different term length or a different fixed-vs-variable choice serve you better now?
• Do you want the flexibility to make lump-sum payments or increase your regular payment?

What to do right now

If your renewal is within the next six months, that's the sweet spot to start. Reach out early and we'll map out your options well before your deadline, so you're never rushed into signing something that isn't right for you. There's no cost to you for my help - the lender pays me once your mortgage is finalized.

You've already done the hard part by owning your home through some unpredictable years. Let's make sure your next term works as hard for you as you did for it.

Let's talk about your renewal. I'm your advocate, and I work for you - not the banks.

☎ (604) 762-0762 | ✉ lyndsy@theplacetomortgage.com
Apply online: r.mtg-app.com/lyndsypahl | mortgagewithlyndsy.com

This article is general information for homeowners in British Columbia and Alberta and reflects conditions as of June 2026, including the Bank of Canada policy interest rate of 2.25%. It isn't financial advice for your specific situation - reach out and I'll give you guidance tailored to you.