There's a quiet financial event happening across Quebec right now, and most homeowners don't realize it's coming for them.
Approximately 60% of all outstanding Canadian mortgages are due for renewal between now and the end of 2026. Many of these were locked in during 2020-2022, when rates were near historic lows. The homeowners who took those mortgages are now renewing into a completely different rate environment.
Even with the Bank of Canada's 9-rate-cut easing cycle — which brought the overnight rate from 5% down to 2.25% — most borrowers renewing in 2025 and 2026 will still see their payments increase. The Bank of Canada's own modelling estimated average payment increases of around 10% for those renewing in 2025.
The question is not whether your payments will change at renewal. The question is how much you can control that change — and whether you'll negotiate, or simply sign.
The Renewal Letter Trap
When your mortgage comes up for renewal, your existing lender sends you a renewal letter. It includes their offered rate and a form to sign and return.
The process is designed to be easy. It is also designed to work in the lender's favour.
Your bank knows you're unlikely to shop around at this moment. You're busy. Switching lenders feels complicated. And the rate they offer you sounds reasonable — you have no reference point to know if it actually is.
The reality: the rate on a renewal letter is almost never the best rate available to you. It is the rate your bank hopes you'll accept without questioning. Most Canadians do exactly that.
What Actually Happens When You Shop Your Renewal
A mortgage broker compares your renewal across the full lender market — banks, credit unions, trust companies, and monoline lenders — and presents the actual best available rate for your file.
The difference between a bank's initial offered rate and the best available market rate is often 0.20% to 0.50%. On a $350,000 mortgage over a 5-year term, that difference represents thousands of dollars in additional interest paid unnecessarily.
Beyond the rate, renewal is also the moment to assess: Should you switch from fixed to variable (or vice versa) given current rate trajectory? Should you change your amortization to reduce your balance faster now that rates are different? Is this the right moment to access equity for debt consolidation or renovations? Do your prepayment privileges and penalty structure still serve your goals?
None of these questions get answered when you sign the renewal letter your bank sends you.
The Timing Issue
In Quebec, most lenders will allow you to begin the renewal process 120 days (4 months) before your maturity date — with no penalty. This gives you time to compare, negotiate, and potentially lock in a rate hold before your existing term expires.
Waiting until the last few weeks before maturity dramatically reduces your leverage. You're essentially in a take-it-or-leave-it position with your current lender.
If your renewal is coming up in the next 6 months, now is the time to start the process.
What If You Want to Consolidate Debt at Renewal?
Renewal is one of the cleanest moments to restructure. If you're carrying consumer debt — credit cards, loans, lines of credit — and you have equity in your property, renewal is an opportunity to consolidate those debts into the new mortgage at a much lower rate than you're currently paying.
This doesn't require breaking your mortgage early (and paying the associated penalty). It happens naturally at the renewal date.
Many Quebec homeowners who feel stuck in consumer debt don't realize their upcoming renewal is the moment they've been waiting for.
What to Do Next
Start early. Begin comparing your options at least 90-120 days before your renewal date.
Don't sign the first offer. Your lender's initial rate is rarely their best rate — and even if you end up renewing with them, they will almost always improve the terms if you show you've shopped the market.
Work with a broker. A licensed broker compares the full market at no additional cost for standard residential mortgages. Their compensation comes from the lender you choose.
If your renewal is coming up, book a free consultation. We review your current mortgage, compare available rates across 20+ lenders, and show you your full options — including whether consolidating any consumer debt at renewal makes financial sense for you.
Ready to Take Action?
These strategies are even more powerful when tailored to your specific situation. Let's talk about your project.
