Canadian Mortgage Renewal Rates — What's Fair in June 2026?

Renewal shock: the 2020–21 cohort and what it means now

Between 2020 and 2021, a significant share of Canadian borrowers locked into 5-year fixed mortgages at rates between 1.4% and 2.2% — historically unprecedented lows driven by pandemic-era monetary policy. Those 5-year terms are now expiring. The same cohort that locked in at sub-2% is now being offered renewals at rates near the current broker floor of 4.09%.

The payment impact is material. On a $500,000 mortgage with a 25-year amortization, a borrower who locked in at 1.75% in 2021 was paying approximately $2,057/month. Renewing at the current broker floor of 4.09% puts the new payment at approximately $2,655/month — a difference of $598/month, or $7,176 per year. If the renewal offer comes in at the bank average rather than the broker floor, the gap is wider still.

Understanding where your renewal offer sits relative to the benchmark data above is the first step. The data block at the top of this page is pulled from BoC data at build time — use it as your starting reference before responding to any renewal notice from your lender.

What's a fair renewal rate in Canada?

A fair renewal rate is one close to the national broker floor — currently 4.09% for a 5-year fixed term. The broker floor represents the most competitive rate available through Canada's broker channel, which aggregates wholesale lenders including MCAP, CMLS Financial, Merix Financial, and others who price at tighter margins than retail bank branches.

The bank average — currently 4.09% — is the rate a well-qualified borrower typically receives from a major bank after some negotiation. It sits above the broker floor because banks price for brand recognition, branch distribution, and the inertia of their existing customer relationships.

Banks quote the bank average first because it is their opening position. Few borrowers push back on the initial renewal offer, and the bank collects the spread on those who do not. Presenting a broker floor quote as a counter-offer — either from a live broker or from benchmark data — routinely results in the bank matching or approaching the broker rate to retain the mortgage.

If your renewal offer is above the bank average, negotiate before signing. If it is close to the broker floor, review the full offer terms — prepayment privileges, portability, and penalty calculation method — since worse penalty wording can cost more than a slightly higher rate with better terms.

How to negotiate your mortgage renewal in Canada

• Start 120 days before maturity. Most major lenders will hold a rate 90–120 days before your renewal date. Starting early gives you time to compare, negotiate, and complete any lender transfer without deadline pressure.
• Get a broker quote first. Contact a mortgage broker before responding to your incumbent lender's offer. A broker accesses wholesale lender rates — often at or near the broker floor — in a single call. Use this quote as your anchor when negotiating with your current lender.
• Use the broker floor as leverage. Present the broker quote to your lender and ask them to match or improve on it. Lenders have rate-exception processes specifically for this scenario. A well-qualified renewal borrower rarely needs to accept the first offer.
• Switching lenders costs nothing on a straight switch. For a straight renewal — same amortization, same balance — there are no legal fees, no title insurance costs, and no appraisal in most cases. The new lender handles the transfer. Any discharge fee ($200–$400) is typically waived or reimbursed by the new lender as a switch incentive.
• Negotiate beyond the rate. Prepayment privileges (typically 10%–20% lump sum annually), portability to a new property, and penalty calculation method all affect the real cost of the mortgage over the term.

Province-specific renewal notes

Mortgage rates are priced from national benchmarks across all provinces, but several provincial rules materially affect the renewal process:

• Quebec (QC) — 6-month mandatory notice. Under Quebec's consumer protection rules, lenders must send renewal notices at least six months before the maturity date, compared with the federal minimum of 21 days. This built-in lead time gives Quebec borrowers significantly more runway to shop and negotiate. Treat the 6-month notice as active comparison time, not a passive waiting period.
• Alberta (AB) and Saskatchewan (SK) — no penalty to switch lenders. Neither province charges a provincial land transfer tax, so the cost of switching lenders at renewal is minimal. A straight lender switch at renewal is effectively zero-cost in AB and SK — reinforcing the value of shopping your renewal offer.
• Ontario (ON) and British Columbia (BC) — highest renewal volume in Canada. Ontario and BC borrowers represent the largest share of the 2020–21 origination cohort now approaching first renewal. The GTA and Metro Vancouver drove peak purchase activity at peak-low rates. Lenders are actively competing for these renewals — use that market dynamic to your advantage when negotiating.

OSFI stress test at mortgage renewal

The OSFI B-20 mortgage stress test requires borrowers to qualify at the higher of their contract rate plus 2 percentage points, or 5.25%. At the current broker floor of 4.09%, the stress test qualifying rate is 6.09%.

The critical exemption: The stress test does not apply when you renew with the same lender at the same amortization and the same outstanding balance. A straight renewal — same lender, no changes — is exempt from B-20 requalification.

The stress test does apply in these renewal scenarios:

• Switching lenders at renewal — even a straight balance transfer with no other changes.
• Refinancing (increasing the mortgage balance or extending the amortization) at any lender.
• Adding a co-borrower or making other material changes to the mortgage at renewal.

For most renewal borrowers with stable employment and no significant income change since origination, qualifying at 6.09% will not be a barrier to switching lenders. Run the numbers before assuming you cannot qualify — the exemption is for same-lender convenience, not because switching is difficult.