Best Mortgage Renewal Rates in Canada (2026)
Your mortgage renewal is one of the most significant financial decisions you'll make. The rate you accept today will determine how much interest you pay over the next term — often $5,000 to $30,000 worth of difference depending on your balance and how hard you shop. Use our mortgage renewal calculator to see the impact on your specific numbers.
Key Takeaways
- • Best 5-year fixed rates in Canada are approximately 4.04% and 5-year variable rates around prime minus 0.95% (prime at 4.45%) as of March 2026.
- • Banks quote rates 0.25-0.75% higher than what brokers can access — on a $600,000 mortgage, 0.5% extra costs approximately $15,000 over 5 years.
- • Insured mortgages (originally less than 20% down) get the best rates; uninsurable mortgages (refinances, over $1.5M) pay a 0.10-0.30% premium.
- • The Bank of Canada overnight rate is at 2.25% as of early 2026, with most economists expecting rates to hold steady through the year.
- • Start shopping 120 days before maturity to lock in a rate hold — if rates drop, most lenders honour the lower rate automatically.
Current Market Renewal Rates (March 2026)
These are approximate market rates available through mortgage brokers for qualified borrowers. Your actual rate depends on your credit score, LTV ratio, income, and property type. Always get a personalized quote.
| Term | Type | Approx. Best Rate | Notes |
|---|---|---|---|
| 1-Year Fixed | Fixed | ~4.39% | Short commitment, maximum flexibility |
| 2-Year Fixed | Fixed | ~4.24% | Balance of flexibility and rate |
| 3-Year Fixed | Fixed | ~4.09% | Most popular balance point |
| 4-Year Fixed | Fixed | ~4.19% | Less common, sometimes poor value |
| 5-Year Fixed | Fixed | ~4.04% | Longest commitment, usually lowest fixed rate |
| 3-Year Variable | Variable | ~Prime − 0.85% | Prime rate currently 4.45% |
| 5-Year Variable | Variable | ~Prime − 0.95% | Historically lowest rate, highest volatility |
| Open Mortgage | Open | ~7.0%+ | Pay off anytime, much higher rate |
Rates shown are approximate best available through broker channel for insured mortgages in March 2026. Rates change daily. Get your personalized rate quote.
How Renewal Rates Differ From Purchase Rates
At renewal, you may qualify for different rates than when you first bought. Key factors that have likely changed: your loan-to-value ratio (your home has likely appreciated), your overall debt load, and the regulatory environment. Importantly, the 2024 regulatory change means you no longer need a stress test to switch lenders on a straight renewal transfer.
Why Your Bank's First Offer Is Rarely the Best Rate
Canada's Big 6 banks rely on inertia. They know that over 70% of Canadians will simply sign the renewal offer that arrives in the mail without shopping around — a costly renewal mistake. As a result, they often quote rates that are 0.25–0.75% higher than what you could get through a mortgage broker.
On a $600,000 mortgage, 0.5% in extra interest over 5 years costs approximately $15,000. The bank's strategy is profitable precisely because most Canadians never compare.
Insured vs. Insurable vs. Uninsurable: Rate Impact
Insured Mortgage
Originally purchased with less than 20% down. CMHC-insured. Best rates available at renewal. No stress test required to switch lenders.
Insurable Mortgage
Originally 20%+ down, purchase price ≤$1.5M, amortization ≤25 years. Lender may bulk-insure. Good rates, slightly above insured.
Uninsurable Mortgage
Refinances, purchase prices >$1.5M, amortization >25 years, rental properties. Lender carries full risk. Higher rates.
Fixed vs. Variable at Renewal (2026)
With the Bank of Canada rate at 2.25% (prime at 4.45%), the gap between fixed and variable rates has narrowed significantly. Variable rates are currently close to or slightly below short-term fixed rates. The decision now depends heavily on your outlook for rates and your risk tolerance.
See our full Fixed vs. Variable at Renewal guide for a complete analysis.
How to Get the Best Rate at Renewal
Start 120 days early
Rate holds are available up to 120–180 days before maturity. Lock in today's rate as protection if rates rise.
Use a mortgage broker
Brokers access 30+ lenders — including monolines that only work through the broker channel and consistently offer better rates than banks.
Get your bank's offer first
Use your bank's offer as a negotiation starting point with your broker. Sometimes just showing a competing rate gets your bank to match.
Know your mortgage type
Standard charge mortgages switch at no cost. Collateral charges require legal fees but may still be worth switching. Know which you have.
Improve your credit beforehand
A credit score above 720 unlocks the best rates. Check your score 6 months out and address any issues.
Rate Forecast: 2026–2027
The Bank of Canada has paused its rate-cutting cycle with the overnight rate at 2.25% as of early 2026. Most major bank economists expect rates to remain relatively stable through 2026, with possible small cuts in late 2026 or early 2027 depending on inflation and US trade policy. For a deeper analysis, see our full Canadian mortgage rate forecast.
For fixed rates, the key driver is Canadian government bond yields. 5-year bond yields have been elevated due to inflation uncertainty and US tariff concerns. Fixed rates are unlikely to return to the sub-2% levels seen in 2020–2021.
What This Means for Your Renewal Decision
If you're renewing in 2026, a 3-year fixed term lets you re-evaluate in 2029 when rates may be lower. A 5-year variable lets you benefit immediately if the BoC cuts. A broker can model both scenarios with your specific numbers.