If your mortgage payment is going up at renewal, the most important step is to prepare early, not panic. The Bank of Canada says about 60% of outstanding mortgages will renew before the end of 2026, and a large share of those borrowers will see their payments increase, although the average increases in 2025 and 2026 are expected to be smaller than the worst-case numbers many homeowners fear. Starting early, reviewing your budget, comparing lender offers, and understanding tools like amortization changes or refinancing can make the increase more manageable.
Why this feels so heavy right now
Many borrowers locked into very low fixed rates in 2020 and 2021. Renewing from those levels to today's rates can still mean a meaningful increase, even though the Bank of Canada's policy rate is now lower than it was in 2024. As of March 18, 2026, the Bank of Canada's target for the overnight rate stood at 2.25%.
That does not mean every borrower will get relief automatically. Fixed-rate borrowers usually feel the impact at renewal. Some variable-rate borrowers already felt it earlier, especially those who ran into trigger-rate problems during the tightening cycle. The result is that many homeowners still need to rebalance their budget, even if the worst rate shock has eased.
What you should do first
1. Start the conversation early
Do not wait for the renewal letter and assume that is your only option. The Financial Consumer Agency of Canada (FCAC) says homeowners should shop around, reassess their needs, and negotiate with their current lender rather than accepting the first renewal offer automatically. A lender's first offer is not always the best one.
Starting the process 4-6 months before renewal can give you time to compare fixed and variable options, gather documents, and deal with any income or credit issues that might affect approval.
2. Build a real payment scenario
Before you renew, work out what the new payment could be and decide what feels manageable. FCAC recommends using mortgage calculators and thinking carefully before stretching amortization just to lower the monthly payment, because that can add thousands or even tens of thousands in extra interest over time.
For many households, the issue is not whether the new payment is possible. It is whether it still leaves enough room for the rest of life - savings, repairs, kids' activities, and an emergency buffer.
3. Review your other debt
This is where homeowners can sometimes create breathing room faster than they expect. If you are carrying expensive credit card debt, a large vehicle payment, or other high monthly obligations, renewal time may be the moment to look at the whole debt picture, not just the mortgage. That does not always mean refinancing is the right move, but it does mean the mortgage should be looked at in context.
What options may help
Negotiate
FCAC specifically encourages borrowers to negotiate both the rate and the terms of their renewal. If you get competing offers, use them. Ask whether your lender can match or improve the offers you receive from other lenders or a mortgage broker.
Switch lenders
Switching lenders has become more practical for many uninsured borrowers. OSFI has exempted many uninsured straight switches at renewal from the prescribed minimum qualifying rate, provided you are not increasing the loan amount or extending amortization. Under current guidance, federally regulated lenders are not expected to apply the stress test to those straight switches, which can make it easier to shop around.
Extend amortization carefully
Extending your amortization can lower the monthly payment, which may help if cash flow is tight after renewal. However, it usually increases long-term borrowing costs. It may be a useful tool for some households in the short run, but it should be treated as a tool with a plan, not a free fix.
Ask about hardship or relief options
If the payment increase is truly difficult, do not go silent. FCAC has formal guidance around mortgage relief expectations in exceptional circumstances, and it also says federally regulated institutions should not offer a less advantageous rate at renewal simply because a consumer cannot switch elsewhere.
Talking early usually gives you more options than talking late. Relief is not guaranteed, but you are more likely to find a solution if you contact your lender before you fall behind.
What this means for Peterborough and Kawarthas homeowners
For local homeowners, the mortgage question often connects to a second question:
"Should I stay, refinance, or sell?"
There is no one answer. Some owners will decide to stay and adjust. Some will refinance or switch lenders. Some may decide this is the right moment to downsize, relocate, or simplify. The important thing is not to make that decision in panic.
A mortgage renewal is a financial event, but it can also be a housing decision. Looking at both your numbers and your bigger life plans usually leads to a better choice.
Final thoughts
If your mortgage payment is going up at renewal, take a breath and start early.
The strongest first steps are usually to:
- review your budget honestly and see what payment is truly sustainable
- compare options from multiple lenders or a trusted mortgage broker
- negotiate your renewal rate and terms instead of accepting the first offer
- understand the trade-off of a longer amortization or refinancing before you commit
- talk to your lender or broker before you are under pressure
That may not remove the increase, but it often makes it more manageable and gives you back a sense of control.
About the Author
Frank Rosso, ABR, SRS is a Peterborough REALTOR® serving Peterborough and the Kawarthas. He helps homeowners and buyers make practical real estate decisions with a calm, local approach, especially when housing, financing, and lifestyle choices start to overlap.
Recommended Resources
- FCAC mortgage renewal guidance
- FCAC mortgage terms and amortization
- Bank of Canada mortgage renewal note
- OSFI straight-switch guidance
FAQ
What should I do if my mortgage payment is going up at renewal?
Start early, review your budget, compare lender offers, negotiate your renewal, and understand the trade-offs of any changes to amortization or refinancing so you can choose the option that fits your situation.
Can I switch lenders at renewal without redoing the stress test?
Many uninsured straight switches at renewal are now exempt from the Minimum Qualifying Rate stress test, as long as you keep the loan amount and amortization the same when moving to a new lender.
Will extending my amortization lower my payment?
Yes, extending your amortization usually lowers the monthly mortgage payment, but it generally increases the total interest you pay over the life of the mortgage, so it should be used with a clear plan.
Should I accept my lender's first renewal offer?
Not necessarily - FCAC encourages borrowers to shop around, negotiate, and compare options before accepting a renewal offer, because the initial quote is not always the best deal available.