A significant shift in power is on the horizon for Canadian homeowners, with a wave of mortgage renewals expected to hand leverage back to borrowers in 2026. This pivotal change means lenders may need to compete by offering improved interest rates or additional perks to retain customers.
The Coming Renewal Wave and Market Dynamics
Financial experts are closely monitoring the upcoming surge in mortgage renewals. This wave stems from a period of historically low interest rates, which prompted many Canadians to secure mortgages. As these terms expire in 2026, a large cohort of borrowers will be seeking new agreements simultaneously.
This concentration of renewals creates a unique market dynamic. Lenders will be highly motivated to retain their existing clients rather than lose them to competitors. This shift is a notable change from recent years, where rising rates often left borrowers with fewer options and less negotiating power at renewal time.
Expert Insight on Borrower Strategy
Leah Zlatkin, a mortgage broker at Mortgage Outlet, discussed this trend with the Financial Post's Larysa Harapyn. Their conversation, noted in an article published on December 18, 2025, highlighted the critical decisions homeowners will face. A key topic was the strategic choice between variable and fixed-rate mortgages in this new environment.
Zlatkin's analysis suggests that borrowers entering this renewal period should be prepared to shop around and negotiate. The anticipated competition among lenders could manifest in several ways, including:
- Marginally lower interest rates than standard posted offers.
- Waived administrative or processing fees.
- Increased flexibility on terms or prepayment options.
Preparing for the 2026 Renewal Opportunity
For homeowners, this forecast underscores the importance of proactive financial planning. Borrowers should start reviewing their mortgage details well before their 2026 renewal date. Understanding your current equity, credit score, and the broader rate environment will be crucial for effective negotiation.
While the landscape appears set to favor borrowers, outcomes will still depend on broader economic conditions, including the Bank of Canada's key interest rate. However, the sheer volume of renewals due in 2026 is a powerful factor that is expected to tilt the scales, offering a window of opportunity for savvy homeowners to secure more favorable mortgage terms.
