Over 60% of Canadian mortgages are renewed by the end of 2026. Let’s audit your loan today to find a strategy that protects your monthly cash flow before your bank sends a take-it-or-leave-it offer.
"Smart Refinancing: Unlock Your Home's Value, Secure Your Future"
Principal Broker Bobby Faboyede holds specialized certification in Private Lending and Alternative Financing. While most traditional brokers rely on standard bank products, Bobby’s advanced training ensures your private mortgage is structured with the highest level of professional stewardship and a secure exit strategy."
Payment Shock Mitigation: A significant number of homeowners who locked in low fixed rates five years ago face payment increases of 15% to 20% or more upon renewal in 2026. Refinancing or extending amortization can help manage this increase.
Accessing Equity over Rate Shopping: While rates have dipped, the massive drops seen in the early 2020s are likely over. Homeowners are focusing more on using accumulated equity for debt consolidation (replacing high-interest debt with a lower mortgage rate) and essential home renovations that build further value.
Stricter Rules for Investors: New OSFI rules for 2026 will make it more challenging for investors to finance multiple properties, requiring each property's income to stand on its own for qualification.
Market Stability, Not Surges: The housing market in 2026 is expected to be more stable with modest price gains (around 3.2% nationally), rather than a sharp boom. This creates a more predictable environment for long-term financial planning through refinancing.
Key Refinancing Trends for 2026”
The Whys of Refinancing, Renewing, or Refinancing A Mortgage
The "Why": Clearly define your goals. Are they aiming to lower payments, consolidate debt, or fund a large project? The "why" determines the best product (refinance, HELOC, etc.).
The Stress Test: Things to consider must requalify and pass the federal mortgage stress test, even if they already own their home. This ensures they can manage payments if rates rise (the qualifying rate is typically the contract rate plus 2%, or the benchmark rate, whichever is higher).
The Costs: Transparency about appraisal fees ($300 - $500), legal fees ($800 - $1,200), discharge fees, and potentially large prepayment penalties is crucial.
Alternatives: Discuss alternatives like a Home Equity Line of Credit (HELOC) or a "blend-and-extend" option with their current lender to avoid a penalty.
AI responses may include mistakes. For financial advice, consult a professional. Your mortgage can be a wise financial decision, but it’s not always straightforward. Whether your mortgage term is approaching its end or you’re currently in the midst of one, our team at Black Knight Capital will assess your existing rate, analyze the figures, and inform you if refinancing is a viable option. If we can offer you a better rate, we’ll demonstrate the potential savings you could achieve.
The "Break-Even" Analysis
Is Breaking Early Worth It?
Breaking a mortgage before your 2026 renewal incurs a penalty, but it often makes financial sense if the long-term interest savings exceed the cost of switching. Bobby performs a precise Break-Even Analysis to determine the exact month your savings surpass the penalty, ensuring every move you make puts money back in your pocket.
Amortization Extensions
Protect Your Monthly Cash Flow
With many Ontario homeowners facing payment increases of 15% or more at renewal, extending your amortization back to 30 years can be a life-saving tool. By stretching the timeline, we can significantly lower your required monthly payment, providing the "breathing room" you need to manage your household budget without stress.
The 2026 Fixed vs. Variable Edge
In the current 2026 market, the "best" rate isn't always the lowest one on paper. Variable rates may offer a qualification advantage, as they are often stress-tested differently than fixed options. Bobby analyzes your risk tolerance and the latest economic forecasts to help you choose between the stability of a fixed-rate mortgage and the potential long-term savings of a variable-rate mortgage.
"As a Principal Broker, Bobby specializes in these high-level maneuvers that some may often overlook. Let’s build your customized exit plan from high interest rates."
FAQs
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A: Renewing means extending your mortgage with your current lender when your term ends. Refinancing involves replacing your existing mortgage with a new one—with the same lender or a different one—to get a better rate, access equity, or change your terms.
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A: Yes, but it may come with penalties. We’ll calculate the costs and help you decide if breaking your mortgage early is worth it based on your current rate and potential savings.
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A: In most cases, yes. Your lender will need to assess the current value of your home to determine how much equity you have and what terms they can offer.
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A: Indeed, refinancing in Canada entails particular regulations and procedures. For instance, you can usually refinance up to 80% of your property's value, and this process requires terminating your existing mortgage to initiate a new one. This could lead to prepayment penalties, particularly if you are still within your mortgage term. Many Canadians choose to refinance to obtain a more favorable interest rate, consolidate their debts, or tap into their home equity. Collaborating with a Canadian mortgage broker such as Black Knight Capital can provide you with clarity on your choices and assist you in confidently navigating the refinancing journey.
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A: Not at all. Refinancing can also help you access your home equity for renovations, consolidate high-interest debt, or switch to a different mortgage structure that better suits your goals.
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Q: How much will my payment increase at renewal?
A: Many homeowners coming off ultra-low pandemic rates (e.g., 1.77%) are seeing their new rates more than double, leading to payment jumps of $700–$1,000+ per month on typical $600,000 mortgages
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A: Yes. We can often leverage your built-up home equity to restructure your loan, potentially extending the term to keep your monthly costs manageable.tem description
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A: If you wait, you are at the mercy of whatever the market offers that week. Refinancing 3 to 6 months early allows us to shop over 60 lenders for the best possible rate and terms. tem description
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A: Many are refinancing to access home equity for major expenses like renovations or debt consolidation, or to manage the "payment shock" from renewing mortgages that were originated at much lower rates in 2020.
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A: It depends on your specific situation. You must calculate your break-even point: the total costs (penalties, legal fees, appraisal costs) divided by your monthly savings. If you save $150 per month and your costs are $2,000, your break-even is about 14 months. If you plan to stay in your home and break even relatively quickly, it may be worth it.
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A: You can typically borrow up to 80% of your home's appraised value. For example, if your home is valued at $600,000 and you owe $300,000, you could potentially access up to $180,000 (80% of $600,000 is $480,000, minus your $300,000 balance).