Mortgage renewals could hit Victorians hard in 2026 as payments climb

With nearly one million Canadians set to renew their mortgages this year, many homeowners in Victoria could be facing a noticeable jump in monthly payments.

New data from Ratehub.ca suggests that borrowers renewing a typical five-year fixed mortgage may end up paying significantly more than they did just five years ago, largely due to higher interest rates.

According to the report, those renewing a five-year fixed mortgage could see their payments rise by about 24%, while those with variable rates may only see a modest increase of around one 1%.

For many homeowners, the shift comes down to timing. Interest rates in 2021 were historically low, and today’s rates are much higher by comparison.

That gap is now showing up in renewal notices across the country.

For example, a homeowner who purchased a home in 2021 with a fixed rate could see their monthly payment jump by more than $600 when renewing in 2026. That adds up to over $7,000 more per year.

Variable-rate borrowers are seeing a different story. While their payments have already risen over the past few years as rates increased, their renewal jump is much smaller.

In some cases, the increase is only a few dozen dollars per month.

For homeowners in Greater Victoria, where housing prices remain among the highest in the country, even a few hundred dollars more per month can have a real impact.

Borrowers are encouraged to start the renewal process early, up to four months in advance, to secure better rates and explore options.

Shopping around can make a meaningful difference, as lenders often offer more competitive rates to new customers than to existing ones.

There is also more flexibility than many people realize. Homeowners who are struggling with higher payments may be able to extend their amortization period or switch lenders without having to requalify under the mortgage stress test, provided they are not increasing their loan amount.

According to RateHub.ca, another key decision facing borrowers is whether to choose a fixed or variable rate.

While fixed rates offer stability, variable rates are currently lower and have become more popular in 2026. However, they come with risk, as payments can change if interest rates rise again.

The gap between fixed and variable rates is currently wide enough that some borrowers are willing to take that risk in exchange for lower initial costs.

For many Victorians, mortgage renewal in 2026 will likely mean paying more each month. How much more depends on the type of mortgage, the rate secured and how early homeowners begin the process.

With that said, don’t wait for your lender’s renewal letter and accept the first offer. Comparing rates and planning ahead could save thousands over the next five years.