Rajendra Savaliya

~1M Canadians renewing mortgages in 2026 faced much higher monthly costs than when they borrowed during the pandemic era, according to an analysis.
For fixed renewals in April 2026, borrowers faced avg. monthly payments ↑$622, or 24% yearly, based on a ~$537K balance and ~$3.3K payment.
Current fixed pricing sat ~265 basis points above pandemic lows. The lowest 5-yr insured fixed rate was ~4%, while the lowest variable was ~3.35%.
Variable borrowers saw smaller renewal shocks because rising benchmark rates had already lifted payments during their term. One example showed renewal costs ↑$36 monthly.
Geopolitical trade pressures and the war in Iran were expected to keep the central bank sidelined through the rest of 2026, with hikes becoming more possible.
Borrowers were urged to start renewal up to 120 days early, compare lenders, and discuss relief options like longer amortization if higher payments looked difficult.
Higher-risk borrowers and mortgage arrears had grown since 2021

Canada Renewals Bring Higher Payments

Canada’s 5-yr government bond yields ↓ overnight after news of a 2-week US-Iran ceasefire, raising hopes fixed mortgage rates could ease in coming weeks.
An economist said it was still too early to know whether the truce would meaningfully change the outlook for the Bank of Canada or housing watchers.
The main uncertainty: what happens after 2 weeks. If tensions return, shipping through the Strait could stay disrupted and energy prices may not normalize.
Even if the ceasefire holds and shipping resumes, the economist said rebalancing oil flows and trade routes could still take 2 to 3 mo.
Lower yields did not guarantee lower fixed mortgage rates. Oil, gasoline, and diesel prices remained significantly higher than earlier in the year and yearly.
Consumer confidence fell to its lowest level in nearly a year, while the war’s Late-Q1 outbreak appeared to chill many hopeful homebuyers’ plans.
The ceasefire brought welcome relief for Canada’s economy and housing market, but the economis