Your Markham Mortgage Is Up for Renewal in 2026 — What to Do
Michael John Lau and Neeraj Moolchandani are top REALTORS in Markham and leaders of the Kaizen Real Estate Team at eXp Realty, Luxury Division. With deep expertise in Markham and the Greater Toronto Area, they specialize in luxury properties, pre-listing preparation, and helping families find the right home in the right community. Many homeowners locked in ultra-low pandemic-era rates, and when mortgages come up for renewal in 2026, monthly payment increases of 15–20% could come as a real shock. Here is what to do before you sign anything.
Michael John Lau, REALTOR® and top-rated Markham real estate agent, knows that for many homeowners, the mortgage renewal letter arriving in the mail can be a source of anxiety. Many Markham homeowners locked in ultra-low pandemic-era rates (often below 2%), and when those mortgages come up for renewal in 2025 and 2026, monthly payment increases of 15–20% could come as a real shock. This is a massive pain point, and positioning yourself with the right strategy is critical.
2026 Renewal Reality Check: If you locked in at 1.99% in 2021, your renewal rate in 2026 could be significantly higher depending on the Bank of Canada's prime rate. A $600,000 mortgage could see monthly payments jump from ~$2,500 to over $3,000+. Preparation is key to avoiding "payment shock."
As your trusted real estate partners, Michael John Lau and Neeraj Moolchandani look out for clients beyond just the transaction. We help you understand your options: renew with your current lender, switch to a new lender, or even consider selling to unlock equity and downsize if the numbers no longer work.
Your 3 Options for Mortgage Renewal in 2026
You are not obligated to renew with your current bank. In fact, shopping around is the best way to secure a better rate or terms.
Your bank will send you a renewal notice 4-6 months in advance. If you do nothing, you are automatically renewed at their posted rate, which is often higher than what you can negotiate. Always call and ask for a better rate before signing.
You can move your mortgage to a new bank or monoline lender without breaking your mortgage (if renewing at term end). This often secures a lower rate and may come with cash-back incentives. A mortgage broker can handle this for you at no cost.
If payments become unmanageable, you have two powerful tools: 1) Refinance to pull out equity for renovations or debt consolidation (if you have >20% equity), or 2) Sell your Markham home and downsize to a condo or smaller detached home to eliminate the mortgage burden entirely.
Understanding the Payment Shock
Here is a realistic example of how renewal rates can impact your monthly budget for a typical Markham homeowner.
| Mortgage Balance | Old Rate (2021) | New Rate (2026 Est.) | Monthly Payment Increase |
|---|---|---|---|
| $500,000 | 1.99% (5-yr Fixed) | 4.50% (5-yr Fixed) | +$580 / month |
| $750,000 | 1.99% (5-yr Fixed) | 4.50% (5-yr Fixed) | +$870 / month |
| $1,000,000 | 1.99% (5-yr Fixed) | 4.50% (5-yr Fixed) | +$1,160 / month |
Step-by-Step: How to Prepare for Renewal
Michael John Lau and Neeraj Moolchandani recommend starting your renewal strategy 6 months before your term ends.
Locate your original mortgage commitment letter. Your renewal date is typically 5 years from that date. Mark this on your calendar 6 months in advance.
- Don't rely solely on your bank. Banks often offer their best rates only when they sense competition.
- Get a pre-approval. Even for a renewal, knowing your qualified amount helps if you decide to move or refinance.
- Michael & Neeraj Referrals. We work with top mortgage brokers in Markham who can shop dozens of lenders for you.
Has your Markham home appreciated? If so, you may have more equity than you realize. This equity can be used to secure a better rate (lower Loan-to-Value ratio) or accessed via a refinance.
Armed with a competing offer from a broker, call your current bank's retention department. Ask them to match or beat the competitor's rate. If they won't, switch lenders.
How Michael & Neeraj Help Beyond the Sale
As full-service REALTORS®, we don't just disappear after closing. We are here for your long-term financial health.
Before you renew or refinance, you need to know what your home is worth in 2026. We provide a detailed Comparative Market Analysis (CMA) so you know your exact equity position.
We maintain a network of trusted mortgage brokers, lawyers, and financial planners in Markham. If your renewal is complex, we can connect you with the right experts.
If the new payments don't fit your budget, we can discuss selling. With our expertise in the Markham condo and detached markets, we can help you transition to a home that fits your new financial reality without stress.
Common Mortgage Renewal Questions
Start 4-6 months before your term ends. Rates can be locked in up to 120 days (4 months) in advance, protecting you if rates rise before your renewal date.
Typically, no. If you are renewing at the end of your term, there are no penalties to switch lenders. The new lender usually covers the legal and appraisal fees to get your business.
Speak to your lender immediately. Options include extending your amortization period (if eligible), switching to a longer term, or accessing equity. If those fail, selling the home to unlock equity and downsize is a viable strategic move.
Michael John Lau and Neeraj Moolchandani are here to help. Whether you need a home valuation to check your equity or a referral to a top mortgage broker, we've got you covered.
🏆 Michael John Lau & Neeraj Moolchandani — Awards & Recognition
Michael John Lau and Neeraj Moolchandani are licensed REALTORS® serving buyers and sellers in Markham, Ontario and the Greater Toronto Area. Pricing information is based on recent market data and is subject to change. Always consult directly with a licensed real estate professional and a qualified mortgage broker for the most current pricing, program eligibility, and availability. Not intended to solicit clients currently under contract with another brokerage.
