Should I pick fixed or variable at renewal in August 2026?

There is no single right answer and this page does not give personalized advice. In August 2026 variable rates started roughly 0.55 to 0.65 percentage points below comparable 5-year fixed rates, but variable pricing moves with lender prime, which was 4.45% and changes when the Bank of Canada changes its policy rate. Fixed pricing locks the payment for the term. Modelling both, including a scenario where a variable rate rises by 0.50% to 1.00%, is more useful than guessing the direction of rates.

Mortgage Renewal Rates in Canada — August 2026

Q: What are mortgage renewal rates in Canada in August 2026?

In the first week of August 2026, public Canadian comparison tables showed lowest advertised rates of roughly 3.84% to 3.94% on a 3-year fixed, about 3.94% to 4.04% on a 5-year fixed and about 3.35% to 3.40% on a 5-year variable, depending on whether the mortgage is insured or conventional. Renewal quotes are usually priced off the same panels but depend on your remaining balance, equity, property and lender. These are advertised benchmarks, not offers or guarantees.

Q: Is the renewal rate my bank sent me the best rate available?

Not necessarily. A renewal letter is an offer from one lender, and lenders do not always lead with their sharpest pricing for existing clients they expect to stay. The practical step is to compare the letter against current market renewal pricing well before maturity, and to confirm you are comparing the same term, amortization, prepayment privileges and penalty calculation, not just the headline rate.

Q: Will my payment go up when I renew in 2026?

It depends on the rate you originally signed. Borrowers renewing out of pandemic-era rates near 2% generally still face an increase, because market rates in August 2026 were in the high 3% to low 4% range. Borrowers renewing out of 2023 or 2024 rates above 5% may see their payment fall. Bank of Canada staff analysis has shown a wide spread of renewal outcomes rather than a single number, so the only reliable answer is to run your own balance and amortization through a payment calculator.

Q: Do I have to pass the stress test to renew?

If you renew with your existing lender on a straight renewal, you generally do not need to requalify under the minimum qualifying rate. If you switch lenders, the new lender underwrites a new application. Federal guidance since late 2024 has allowed insured borrowers to switch lenders at renewal without re-applying the stress test on a straight switch, while uninsured switches may still be requalified depending on the lender. Confirm the current requirement with the lender before you commit.

Q: When is the next Bank of Canada rate announcement?

The Bank of Canada held its target for the overnight rate at 2.25% on July 15, 2026, its sixth consecutive hold, and the next scheduled announcement is September 2, 2026. Prime at Canada's major banks has been 4.45% since October 2025. Rate expectations are not guarantees and can change with new inflation, jobs and trade data.

Quick takeaway: As of August 7–9, 2026, public rate tables showed lowest advertised 3-year fixed pricing near 3.84%–3.94%, 5-year fixed near 3.94%–4.04% and 5-year variable near 3.35%–3.40%, split between insured and conventional. Prime was 4.45% and the Bank of Canada's overnight rate was 2.25%, with the next decision scheduled for September 2, 2026. Your renewal offer is one lender's number, not the market's.

3.94%Lowest advertised insured 5-year fixed in public tables, early August 2026.

3.35%Lowest advertised insured 5-year variable over the same period.

4.45%Prime rate at Canada's major banks, unchanged since October 2025.

Sept 2Next scheduled Bank of Canada rate announcement, 2026.

Where renewal pricing sits in August 2026

Renewals are quoted from the same lender panels as new purchases, but the rate you are offered depends on your remaining balance, your equity position, the property type and whether your mortgage is still insured. The table below summarizes lowest-in-market advertised rates reported by public Canadian comparison sites in the first week of August 2026.

Term	Lowest insured	Lowest conventional / uninsured	Typical renewal use case
2-year fixed	~3.94%	Higher, varies by lender	Short bridge if you expect lower rates later
3-year fixed	~3.84%–3.89%	~4.09%	Often the sharpest fixed pricing in 2026
5-year fixed	~3.94%	~4.04%	Longest payment certainty
5-year variable	~3.35%	~3.40%	Lowest start, moves with prime

Figures are rounded public benchmarks as of August 7–9, 2026 and change frequently. Comparison sites differ because their lender panels and eligibility rules differ. See current Canadian mortgage rates and mortgage renewal rates for updated pricing.

Why 2026 renewals are not all bad news

The phrase "renewal cliff" gets used loosely. In practice the outcome depends entirely on the rate you are coming off:

Renewing out of a 2021 term near 2%: moving to something in the high 3s or low 4s still means a payment increase, though a smaller one than the same renewal would have produced in 2023 or 2024, when rates were well above 5%.
Renewing out of a 2023 or 2024 term above 5%: today's pricing is likely to reduce your payment.
Renewing a variable: prime has come down substantially from its 7.2% peak in 2023 to 4.45%, so variable holders have already absorbed most of the adjustment.

Bank of Canada staff analysis of renewal payment changes has consistently shown a wide distribution of outcomes rather than one headline number. The only figure that matters is yours — run your actual balance, remaining amortization and quoted rate through the mortgage payment calculator before you decide anything.

How to read your renewal letter

A renewal letter is a legitimate offer, but it is a first offer. Lenders price for retention, and the rate printed on the form is frequently above what the same lender would quote a new client the same week. Work through it in this order:

Find the maturity date and start comparing four to six months out. Most lenders will hold a rate for 90 to 120 days.
Check the term offered. Some letters default you into a 5-year fixed when a 3-year is priced lower.
Check what happens if you do nothing. Many lenders auto-renew into a posted or short open rate, which is usually the most expensive option on the page.
Compare against market pricing for the same category, term and amortization.
Ask your current lender to match before you move. Retention desks often can.
Price the switch honestly. Discharge, appraisal and legal fees can total several hundred dollars, though many lenders cover them on a straight switch.

Compare your renewal offer before you sign

RateShop can help you put your lender's renewal letter side by side with current renewal, switch and refinance options across multiple lenders — using your real balance and timeline rather than a table's best-case borrower.

Compare renewal rates

Fixed or variable at renewal?

In August 2026 the advertised gap between variable and comparable 5-year fixed pricing was roughly 0.55 to 0.65 percentage points. That gap is the trade-off, not a free lunch:

Fixed is priced off Government of Canada bond yields and locks your payment for the term. Mid-length terms (3 and 4 years) have often carried the sharpest fixed pricing in 2026.
Variable is quoted as a discount to prime (4.45%). It stays put while the Bank of Canada holds and moves the day prime moves. Adjustable-payment variables change your payment immediately; fixed-payment variables shift the split between principal and interest instead.

Published commentary in early August 2026 mostly expected the Bank of Canada to stay on hold through the fall, with some economists penciling in gradual increases in 2027. Forecasts move. A more durable approach is to test your payment at the fixed quote and at a variable rate 0.50% to 1.00% higher, and choose the structure whose worst case you are comfortable with.

Switching lenders at renewal

Switching at maturity is generally the cheapest time to move, because there is no prepayment penalty when the term ends. The main considerations are qualification and paperwork. On a straight switch — same balance, same or shorter amortization, no new money — insured borrowers have been able to move lenders at renewal without re-applying the minimum qualifying rate since federal guidance changed in late 2024. Uninsured switches may still be requalified depending on the lender's policy, so confirm before you apply. If you need to take equity out or extend amortization, that is a refinance, not a switch, and it is underwritten differently.

Rate disclaimer

All rates, yields and market figures on this page are general educational information gathered from public sources on or about August 9, 2026 and may be out of date, incomplete or superseded without notice. RateShop does not guarantee any rate, approval or product availability. Actual mortgage rates depend on lender criteria, credit profile, verified income, property type and value, mortgage purpose, down payment or equity, insurance status, amortization and documentation. This page does not provide personalized mortgage, legal, tax or financial advice. Speak with a licensed mortgage professional about your own situation.

Frequently asked questions

What are mortgage renewal rates in Canada in August 2026?

Public tables in early August 2026 showed lowest advertised pricing near 3.84%–3.94% on a 3-year fixed, 3.94%–4.04% on a 5-year fixed and 3.35%–3.40% on a 5-year variable, split between insured and conventional. Renewal quotes follow the same panels but depend on your balance, equity, property and lender. These are benchmarks, not offers.

Is the renewal rate my bank sent me the best rate available?

Not necessarily. A renewal letter is one lender's offer, and retention pricing is often above what the same lender quotes new clients. Compare it against current renewal rates before signing, matching term, amortization, prepayment privileges and penalty calculation — not just the headline number.

Will my payment go up when I renew in 2026?

It depends on the rate you are coming off. Renewing out of a pandemic-era rate near 2% generally still means an increase; renewing out of a 2023–2024 rate above 5% may mean a decrease. Bank of Canada staff analysis shows a wide spread of outcomes, so run your own numbers in the mortgage payment calculator.

Should I pick fixed or variable at renewal?

There is no universal answer and this is not personalized advice. Variable started about 0.55–0.65 points lower in August 2026 but moves with prime (4.45%). Fixed locks the payment. Model both, including a variable 0.50%–1.00% higher, and pick the worst case you can live with.

Do I have to pass the stress test to renew?

Renewing with your existing lender on a straight renewal generally does not require requalification. Switching lenders means a new application; insured straight switches at renewal have been exempt from re-applying the minimum qualifying rate since late-2024 federal guidance, while uninsured switches may still be requalified. Confirm with the lender.

When is the next Bank of Canada rate announcement?

September 2, 2026. The Bank held at 2.25% on July 15, 2026 for a sixth consecutive decision, and prime has been 4.45% since October 2025. Expectations are not guarantees. See current mortgage rates in Canada for the latest.

Mortgage renewal rates in Canada: August 2026