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For informational purposes only. Not financial, legal, or professional advice. Consult a licensed mortgage professional before making decisions. See full disclaimer

FAQ Library
Renewal•By Ratellow Research Team•Verified 2026-09-01•How we research

Why are 1-2 year fixed terms emerging as a 2026 renewal strategy?

In a market where 60% of renewals face payment increases, shorter fixed terms act as a reset window.

Need a Deeper Breakdown?

Read the full research guide this FAQ was derived from for more context and strategy.

Primary sources

Primary sources cited by the Ratellow Research Team. Editorial standards · Correction policy

Read the deeper guide · Renewal

1 and 2 Year Fixed Mortgage Terms: Smart Renewal Strategies for Canadians in 2026

Related Questions

How does the stress test affect my 2026 renewal options?

Same-lender renewals and uninsured straight switches (OSFI, November 21, 2024) are exempt from the prescribed MQR. A refinance, an insured switch, or any increase in loan amount still requires the stress test — greater of 5.25% or contract + 2%.

What's the difference between insured and uninsured mortgage renewals?

Insured mortgages face stricter CMHC/Sagen constraints while uninsured mortgages enjoy flexible OSFI-only guidelines.

Should I consider switching lenders or negotiate with my current lender?

Your switching decision hinges on rate differential versus requalification risk, with break-even analysis determining optimal strategy.

When should I start my mortgage renewal process?

Start your renewal process 120-180 days before your current term expires to maximize your strategic options.

Analyze Your Scenario

Calculator

Renewal Calculator

Current2.10%
Renewal4.19%
+$412/mo
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Today’s Lowest Mortgage Rates

5-Year Fixed
Lender 1
4.14%
3-Year Fixed
Lender 1
3.94%
5-Year Variable
Lender 1
3.49%
Prime Rate
Bank of Canada
4.45%

Strategic Proof

  • Market Shift: ~15% increase in 1-2 year term adoption since 2024.
  • BoC Context: Bank of Canada policy rate target is 4.45% prime rate as of April 2026
  • Risk Mitigation: Breaks the 'cliff' into smaller, manageable decision points.