Waiting too long to renew could leave homeowners with fewer choices and higher costs
Canadian homeowners approaching mortgage renewal are being urged to start the process well ahead of their renewal date, with one broker warning that a shortage of time, not just higher rates, is what limits options in today's market.
Fixed rates have moved higher after sitting lower earlier this year, with some uninsured five-year fixed rates now around 4.09% and three-year rates sitting between 4.54% and 4.60%.
The shift comes as a Canada Mortgage and Housing Corporation (CMHC) Mortgage Consumer Survey found that 35% of Canadians who renewed their mortgage in the past 18 months reported increased financial pressure from interest-rate changes, with average monthly payments rising by approximately $375.
The Bank of Canada has also projected that roughly two thirds of borrowers renewing in 2026 could see their payments increase, with average hikes near 20% for holders of five-year fixed-rate mortgages.
For brokers working with clients through renewal, when homeowners start the process matters as much as which product they ultimately choose.
Leah Zlatkin, licensed mortgage broker and LowestRates.ca expert, said the pattern she sees among clients points to a costly and preventable mistake.
"I've had homeowners come to me close to their renewal date because they weren't happy with the rate their lender offered, and by that point, time becomes an issue," Zlatkin said.
"There can be a better rate available elsewhere, but if you leave it too late, you might not have enough time to get approved and complete the switch."
Rate holds and the window to shop
Zlatkin recommends homeowners begin exploring options several months before their renewal date. That lead time allows borrowers to secure a rate hold — locking in a rate while continuing to monitor the market — and avoids being forced into a decision under pressure.
Getting financial documents in order early also matters. Income records, debt levels, and home valuations all factor into what a new lender requires to approve a switch. And as homeowners face real financial pressure heading into renewal, many households are already stretched before the paperwork even starts.
The real cost of leaving it too late
When the window is short, the best-value product is not always the one that can be completed in time. Zlatkin said this is where late starters consistently lose ground.
"Sometimes the better-priced option takes longer to put in place," she said.
"If you wait until the last few weeks, you could end up choosing based on what can get done in time rather than the mortgage that works best for you. Starting early gives you more time to compare your options and make the numbers work."
Zlatkin also cautioned homeowners against evaluating renewal decisions on rate alone. Prepayment privileges, penalties for breaking the term, portability, and costs tied to switching lenders can all affect the total cost of borrowing, and comparing those features properly takes time.
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