Should You Switch Lenders at Renewal in 2026?

When your mortgage comes up for renewal in 2026, one of the biggest decisions you’ll face is whether to stay with your current lender or switch to a new one. Many Canadians automatically renew out of convenience—but doing so could mean missing out on better rates, more flexible terms, and long-term savings.

Why 2026 Is a Critical Renewal Year

A large number of mortgages originated during low-rate periods are renewing at higher interest levels. While rates in 2026 are expected to be more stable, lenders are competing aggressively for renewal business. This creates opportunities for borrowers who are willing to explore their options.

Pros of Switching Lenders at Renewal

Switching lenders in 2026 can offer several advantages:

Lower Interest Rates

New lenders often provide better pricing than renewal offers from your existing lender, especially if your credit profile is strong.

Better Mortgage Features

Switching may unlock:

• Higher prepayment privileges

• Lower penalties

• More flexible refinancing options

Negotiation Leverage

Even if you decide to stay, having competing offers can help you negotiate improved terms with your current lender.

Potential Downsides to Consider

While switching lenders can be beneficial, it’s important to factor in:

• Legal and appraisal fees (some lenders cover these)

• Time and paperwork involved

• Qualification requirements under current lending rules

In many cases, the long-term savings outweigh the short-term costs—but it’s essential to run the numbers.

When Staying With Your Current Lender Makes Sense

Staying put may be the right choice if:

• Your current lender matches or beats market rates

• You value simplicity and minimal paperwork

• Your mortgage has unique features that are hard to replicate

A careful comparison ensures you’re not sacrificing savings for convenience.

How to Decide in 2026

Before renewing:

• Start reviewing options 6 months early

• Compare at least 3 lenders

• Look beyond the interest rate

• Work with a mortgage professional who can assess total costs

Final Thoughts

So, should you switch lenders at renewal in 2026? For many Canadians, the answer is yes—but only after a thorough comparison. With lenders competing and rates stabilizing, switching could be a smart move to reduce interest costs and improve flexibility.