Today’s Mortgage Renewal Rates in Canada
Editor's Note: On July 15, 2026, the Bank of Canada announced it was holding its overnight lending rate at 2.25%. The overnight rate influences variable mortgage rates, so home buyers can expect variable rates to stay at their current levels until at least September 2, when the Bank will make its next rate decision. For more information, read NerdWallet's analysis of the Bank's latest rate hold.
How much will renewing your mortgage cost?
Take a minute to find out using our mortgage renewal calculator.
Mortgage renewal rate update: July 2026
At the beginning of July, it seemed as if it might be a good month for homeowners about to renew a mortgage. Fixed rates had eased at some brokerages as the war in Iran seemed close to a peaceful conclusion.
You can forget all of that. Now that bombs are falling in and around Iran, government bond yields have once again spiked. This matters because lenders use bond yields to price their fixed renewal rates.
If yields remain high, lenders may have no choice but to raise their fixed renewal rates. If this is a concern, reach out to your lender pronto about locking in a rate.
Variable renewal rates, on the other hand, should remain stable for the rest of the summer.
After the Bank of Canada announced it was holding its overnight rate at 2.25% on July 15, variable renewal rates will continue hovering around their current levels until at least September 2, when the Bank will hand down its next overnight rate decision.
Read more about the Bank of Canada's latest rate announcement.
The BoC makes policy interest rate announcements eight times a year. Find out how its latest decision might impact Canada's housing market.
Renewing your mortgage soon?
Remember:
Assessing your own finances is an important step when renewing.
There are ways to lower your monthly payment for your next mortgage contract, even if rates have risen.
To get the best mortgage renewal rate, plan to negotiate
There are two ways to secure the best rate on your mortgage renewal: using a broker or negotiating on your own behalf.
Renew with your current lender | Renew with another lender | |
|---|---|---|
Who negotiates? | You. | A mortgage broker can negotiate on your behalf, or you can negotiate directly. |
Do you need to submit a new application? | No. This can be helpful if you’d have trouble getting approved with your current finances. | Yes. |
Will you face the stress test? | No. | No, assuming you have an uninsured mortgage and are not making any changes to your mortgage amount or amortization period. |
How to begin the process. | Wait for your current lender to send you a renewal offer. | Contact a mortgage broker, or begin contacting other lenders directly. |
How to negotiate. | Don’t accept your lender’s first offer. Ask for rates more in line with advertised discounted or special rates. | Mortgage broker negotiates on your behalf. If you’re negotiating with a lender directly, share the most competitive rates you’re getting from other lenders. |
Many alternative lenders work exclusively with mortgage brokers, so even if you take care of the comparisons yourself, you may need to tag in a broker to get your application underway at the lender of your choosing.
How to approach renewal if your finances have changed
Generally speaking, if your income has gone down or your debts have gone up, lenders will look less favourably upon your renewal. You can still expect to renew with your current lender — they won’t require you to submit a new application — but you'll have less negotiating power.
If your lender denies your renewal, you'll have to seek renewal offers elsewhere. That's why it's always a good idea to start the renewal process early.
If your income has gone up or your debts have decreased significantly, you may be in a stronger position to negotiate than last time your mortgage was up for renewal.
Your employment history matters, too. Switching jobs isn’t a negative if the new role is comparable to your last one.
If you had a salaried position and are now self-employed, lenders will want to see an established track record — generally two years of consistent earnings. If you are considering a career change, consider doing it well in advance of your mortgage renewal if you want to maximize your mortgage options.
How to estimate your new mortgage payment
A simple way to estimate the cost of your next mortgage term is to use a mortgage renewal calculator:
Enter your potential renewal details, including the new interest rate and any changes you may be considering to the amortization period, rate type or payment frequency.
Compare the results to your current mortgage payment to find out how much more you could be paying upon renewal.
Running these numbers yourself can be helpful, but consider your lender or mortgage broker to be the ultimate source of truth when it comes to determining the cost of your renewal.
You're 5 minutes away from a great renewal.
Connect with Homewise to get a renewal rate quote that's personalized to you.Frequently asked questions
Does my mortgage rate change when I renew?
It’s very likely that your mortgage interest rate will change when you renew. Renewal rates are based on lenders’ current mortgage rates, so if rates have risen or fallen since you signed your last mortgage, your next rate will almost certainly be different.
What's a good mortgage renewal rate right now?
As of July 2026, many lenders’ renewal rates are no different than their purchase mortgage rates. Three- and five-year fixed renewal rates can be found for around 3.9% at some brokerages. Variable renewal rates are generally 3.4% or higher.
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Clay Jarvis
Clay Jarvis
Clay Jarvis