For Homeowners

Your Mortgage Renewal Shock

Locked a sub-3% rate in 2020–2021? Renewing in 2025–2026 could add hundreds to your monthly payment. See your exact number in 20 seconds — then your options to soften it.

4.45%
Prime rate
Aug 26, 2026
3.34%
5-year GoC bond yield
Aug 28, 2026
3.60%
Est. variable rate
Aug 27, 2026
5.25%+
Stress test floor
greater of contract +2%

Bank of Canada, updated daily. These are official reference rates, not a quote. Full rate watch.

Want a real rate? I'll introduce you to a broker personally ›

Your current mortgage

Your payment goes up by
$0/mo

Ways to soften the shock

  • Shop the renewal — your current lender's first offer is rarely their best. A broker compares every lender.
  • Extend the amortization to lower the monthly (you pay more interest over time — a trade-off, not free).
  • Make a lump-sum prepayment before renewal to shrink the balance the new rate applies to.
  • Consider a shorter term or a blend-and-extend if you expect rates to fall.

Estimates amortize your remaining balance over your remaining years using Canadian semi-annual compounding (Interest Act standard). Your real renewal depends on the lender, product, and qualification — Mohammad will connect you with a trusted mortgage broker to compare options.

Get a second opinion on your renewal

Before you sign your lender's renewal letter, let Mohammad connect you with a trusted broker who'll shop every lender — often worth hundreds a month. Free, no obligation.

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Frequently asked questions

Straight answers to what people ask me most about this. Still stuck? Send me the question directly.

Renewal shock is the jump in your monthly payment when you renew a mortgage at a higher rate than your original term. Many Canadians who locked sub-3% rates in 2020-2021 are renewing in 2025-2026 at 4-5%+, which can add hundreds of dollars a month.
We amortize your remaining balance over your remaining years at your new rate, using Canadian semi-annual compounding (the Interest Act standard). Then we compare it to your current payment to show the monthly and annual increase.
Options include shopping the renewal (your current lender's first offer is rarely their best), extending amortization, switching lenders, blending, or making a lump-sum prepayment before renewal. A mortgage broker can compare all of these — Mohammad can connect you with one.

Selling is one option of seven. Before you list, check whether your mortgage is assumable — a standard-charge sub-3% rate is a marketing asset almost no competing listing has. See assumable mortgages & vendor take-backs →