If you signed a five-year fixed mortgage in 2020 or 2021, I don't have to tell you what's coming. You already feel it in your stomach every time the renewal letter shows up.
You locked in at 1.99%, maybe 2.24%, maybe a bit lower if you were lucky. Life was good. The monthly payment felt manageable, you bought the house you wanted, and everything made sense.
Now, five years later, you're looking at a renewal in the 4% range — and the math is suddenly very different.
This isn't a niche problem. Over one million Canadian homeowners are facing mortgage renewals this year alone. In Brampton and Mississauga, where average home prices sit around $885,000 and $971,000 respectively, the payment increases are real money.
Here's what to actually do about it — before you just sign whatever the bank puts in front of you.
How Big Is the Jump, Really?
Let's put numbers on this. Take a family in Brampton with a $600,000 mortgage originally taken at 1.99% in 2021 on a 25-year amortization.
Original monthly payment (2021): roughly $2,540
Renewing today at 4.04% (best broker rate): roughly $3,270
Renewing at 4.29% (big bank posted): roughly $3,360
That's an extra $730 to $820 per month — every month, for the next five years. Over a full renewal term, it adds up to somewhere between $44,000 and $49,000 in additional interest.
And that's the best-case version. If you're on a variable rate that already adjusted, or if your mortgage balance is larger, the gap is even bigger.
Why This Is Happening
Rates haven't spiked because of any single thing. It's the cumulative effect of:
The Bank of Canada raising its policy rate aggressively in 2022 and 2023 to fight inflation
Bond yields staying elevated even as the overnight rate has come back down
Lenders pricing in more risk and tighter margins on residential mortgages
As of April 2026, the Bank of Canada policy rate sits at 2.25% and most forecasters expect it to stay roughly flat through the rest of the year. That's good news for variable-rate borrowers — it means variable rates should stay in the 3.35% area. But it doesn't help if you want the certainty of a fixed rate, because fixed rates are tied to bond yields, not the overnight rate.
What the Banks Aren't Going to Tell You
When your renewal letter arrives, the bank will offer you a rate. That rate is almost never their best rate.
Banks know most people don't shop around — it's easier to just sign and move on. But that convenience can cost you tens of thousands of dollars over a five-year term.
Things most Brampton and Mississauga homeowners don't realize:
Your current lender's renewal offer is a starting point, not a ceiling. You can almost always negotiate down.
A mortgage broker can often beat bank rates by 20-40 basis points. On a $600,000 mortgage, that's real money.
Switching lenders is not as painful as it sounds. If you have at least 20% equity, a switch can often be done with minimal paperwork and zero appraisal fees paid by you.
Prepayment options and portability matter as much as rate. A rate that's 10 basis points lower but comes with a brutal penalty clause can end up costing you more.
Five Things to Do Before You Renew
1. Start the conversation 120 days before maturity
Most lenders will let you lock in a rate up to four months before your current term ends. If rates drop in that window, you take the lower one. If rates go up, you're protected.
2. Get at least three quotes
Your current bank, a competing bank, and a mortgage broker. That's your minimum. The spread between the highest and lowest offer you see will almost always surprise you.
3. Run the actual numbers on fixed vs. variable
With the Bank of Canada expected to hold rates steady, variable-rate mortgages in Canada are expected to remain around 3.35% through 2026. That's lower than fixed rates today. The trade-off is uncertainty — if rates go back up, your variable payment rises. A good broker can model both scenarios for you.
4. Think hard about amortization
If the new payment feels too tight, you may be able to extend your amortization back out to 25 or even 30 years at renewal (depending on your lender and whether you qualify). That reduces the monthly bite, though you pay more interest over the life of the loan.
5. Consider whether the home still fits your life
This is the conversation I have with a lot of clients right now. If the new payment genuinely breaks the household budget, staying in the home isn't always the answer. Selling, downsizing, or moving to a slightly smaller market — Caledon, Milton, or parts of Hamilton — can reset your monthly cost significantly. It's not a decision to make in a panic. But it's a decision worth thinking through before you lock yourself into another five years of strain.
The Brampton and Mississauga Context
The GTA housing market going into spring 2026 is a buyer's market. Inventory is high, days on market are sitting around 27–28 days, and prices in both cities are expected to stay roughly flat or dip 1–2% before recovering.
For homeowners facing a renewal shock, that's actually relevant. It means:
If you need to sell to right-size, you're selling into softer prices — so time it carefully
If you're staying put and tightening the budget, you're probably not going to see big price appreciation bailing you out in 2026
If you have equity and you want to refinance to consolidate higher-cost debt (credit cards, car loans), there's a real opportunity there
This is also why it's worth getting a current valuation on your home before renewal. If your property has appreciated since you bought it, you may have more refinancing flexibility than you realize.
What I Tell My Clients
Most of the conversations I'm having right now fall into three buckets:
"We can absorb it, but it's tight." Negotiate hard, shop the renewal, consider extending amortization if needed. Don't just sign the first offer.
"We're not sure we can afford this." Before panicking, get a proper mortgage review. There are almost always more options than your current bank is presenting. A broker and a realtor can walk through them together.
"We need to think about selling." This is a real option, and there's no shame in it. But don't make it a reactive decision. Know what your home is worth, know what smaller properties cost in the neighbourhoods you'd consider, and decide on your timeline.
The Bottom Line
The 2026 mortgage renewal wave is real, and if you're in Brampton, Mississauga, or anywhere in the GTA, it's probably your year or the year after.
The worst thing you can do is ignore the letter when it arrives and just sign. The best thing you can do is treat renewal day like the financial event it is — shop it, negotiate it, and make sure the mortgage still fits the life you want for the next five years.
If you'd like a no-pressure conversation about where your home sits in today's market, or you want a referral to a mortgage broker I trust, I'm happy to help.
Let's talk about your next move.Get in touch with Githa Vijo for an honest read on your home's value and your options heading into renewal.
Disclaimer: I'm a licensed REALTOR®, not a mortgage broker or financial advisor. Specific mortgage advice, rate quotes, and product recommendations should come from a qualified mortgage professional or financial planner.
