Darryl Kraemer
Contact Info:
About
Explore Our Services
Preview Our Rates
Access all your mortgage options with just one application. Preview today's rates first:
Our Lenders
Blog
Mortgage Renewals in 2026: Why Looking Beyond Your Rate Matters More Than Ever
March 25, 2026
If your mortgage is coming up for renewal in 2026, you’re likely transitioning from a rate environment we may not see again for a long time.
Many homeowners secured mortgages at rates between 1.5% and 2.5% just a few years ago. Today, renewal rates are significantly higher — and for most, that means higher monthly payments.
The natural reaction is to focus on one question:
“How do I get the lowest rate possible?”
But in today’s environment, that’s only part of the answer.
A More Useful Question: What Does My Total Debt Cost Look Like?
Your mortgage is usually your largest debt — but it’s rarely your only one.
When payments increase at renewal, the real pressure often comes from the combined effect of all debts, such as:
- Lines of credit
- Credit cards
- Vehicle loans
- Other installment debt
Each of these carries a different interest rate — often much higher than a mortgage.
So instead of focusing only on your mortgage rate, it can be more effective to look at your overall (or “blended”) cost of debt.
A Simple Example
Let’s look at a common scenario (assume 25-year amortization, 5-year term):
Before Renewal:
- Mortgage: $500,000 at 2.0% → ~$2,100/month
- Line of credit: $50,000 at 8% → ~$330/month interest
- Credit cards: $15,000 at 19% → ~$240/month interest
Total monthly debt cost: ~$2,670
After Renewal (No Strategy):
The mortgage has 20 years of amortization left. ~$416,000 balance.
- Mortgage renews at ~4.5% → ~$2,630/month
- Other debts unchanged**
New total monthly cost: ~$3,200
➡️ Increase of nearly $530/month
➡️ That’s an increase of $31,800 over the next 5 years
** Assumes the LOC and Credit cards make only minimum interest payments.
After Refinance Consolidation Strategy:
- Mortgage refinanced to include other debts, 20-year amortization
- New mortgage: ~$481,000 at ~4.5%
New total monthly cost: ~$3,032
➡️ Still higher than before — but ~$168/month lower than just renewing➡️ Plus simplified payments and lower overall interest on high-rate debt
➡️ Saves ~$10,000 vs straight renewal over the next 5 years
Why This Matters Right Now
Two things are happening at once:
- Mortgage payments are rising at renewal
- Higher-interest debt hasn’t gone away
Looking at these separately can make the situation feel tighter than it needs to be.
Looking at them together creates opportunities to:
- Improve monthly cash flow
- Reduce interest on high-rate debt
- Simplify your financial structure
Using Your Renewal as a Planning Opportunity
Your mortgage renewal is one of the easiest times to make changes:
- You can switch lenders without penalty
- You can adjust your structure (term, amortization, etc.)
- Lenders are actively competing for strong borrowers
This makes it an ideal time to step back and review your full financial picture, not just your mortgage terms.
Bottom Line
In 2026, the conversation around mortgages is shifting.
It’s no longer just about finding the lowest rate.
It’s about making sure your entire debt structure works together — especially as payments reset to higher amounts.
If your mortgage is coming up for renewal this year, taking a broader view can make a meaningful difference in both your monthly cash flow and long-term financial position.
Reach out if you want to look at a strategy for your situation.
Bank of Canada Holds at 2.25% — Here's What It Means for You
March 18, 2026
Today, the Bank of Canada held its overnight rate at 2.25% for the second consecutive decision in 2026. No surprise — markets had priced in a hold at over 92% odds heading into the announcement — but the backdrop is anything but boring.
The World Got Complicated Fast
Three months ago, the story was simple: 2026 was supposed to be a stable, predictable rate environment. That's no longer true.
Canada is now balancing a surprise spike in unemployment, weak economic growth, and fresh inflation risk from a global oil price shock driven by conflict in the Middle East. Iran's actions in the Persian Gulf sent oil prices sharply higher, with Brent crude briefly topping US$100/barrel. That kind of supply shock creates a real headache for a central bank trying to keep inflation near its 2% target.
TD Economist Maria Solovieva summed up the bind well: risks to growth are tilted to the downside, while inflation risks have gone up due to higher energy prices.
What Economists Are Actually Saying
The big banks are largely aligned: Oxford Economics, CIBC, RBC, BMO, and TD all project the Bank of Canada's policy rate will hold at 2.25% through the end of 2026 — though some, including Scotiabank, have started pencilling in hikes toward year-end if inflation doesn't cooperate.
Desjardins deputy chief economist Randall Bartlett put it plainly — the economy was weak but not weak enough to force the Bank's hand in either direction, and the oil price shock, if temporary, will likely be looked through.
That said, a hike is no longer off the table. Markets are now pricing in a rate increase before year-end, something that was essentially impossible to imagine three months ago.
What This Means for Your Mortgage
If you have a variable-rate mortgage, nothing changes today. Your payments stay the same. But understand the environment you're sitting in — the next move could be up, not down.
If you're coming up for renewal, this is not the moment to drift. Around 33% of Canadian mortgage holders are expected to face higher monthly payments by the end of 2026, with fixed-rate borrowers renewing this year seeing payment increases averaging around 20% as pandemic-era low rates expire.
If you're shopping for a fixed rate, watch bond yields more than the Bank of Canada. Bond yields have already moved higher because of the Iran conflict — fixed mortgage rates can rise even when the overnight rate sits still.
The Bottom Line
The rate held. The uncertainty didn't. Whether you're buying, renewing, or refinancing, the window to get clarity on your mortgage strategy is now — before the next announcement on April 29th, which lands alongside the Bank's full Monetary Policy Report.
If you want to run through your options, I'm here. Reach out, and let's make sure your mortgage is working for you in whatever environment comes next.
First‑Time Buyer in Ontario? Why “Getting Ready” Matters More Than Waiting for Rates
February 09, 2026
If you’re a first‑time home buyer in Waterloo Region or anywhere in Ontario, you’ve probably heard the same advice on repeat: “Just wait until rates drop.”
But here’s what I’m seeing — buyers who wait for the perfect rate often lose more in pricing, competition, or rushed decisions than they save in interest.
Right now, with rates relatively steady and inventory slowly improving, preparation is the real advantage.
1. A Rate Hold Changes Buyer Psychology — Not Just Payments
When rates stop bouncing around week to week, buyers get clarity. Sellers do too. That’s often when activity quietly increases before headlines catch up. The first people to benefit aren’t the ones refreshing rate charts — they’re the ones who already understand what they qualify for and how lenders will view their file.
2. Pre‑Approval ≠ Strategy
A pre‑approval tells you how much you might borrow. A strategy tells you:
- Which term fits your risk tolerance
- How the stress test actually affects your real budget
- Whether fixed, variable, or a split makes sense for your income and timeline
- How closing costs and land transfer tax change your effective purchase price
First‑time buyers who skip this step often feel rushed later — and that’s when mistakes get expensive.
3. The Stress Test Is Still the Gatekeeper
Even with stable rates, the qualifying rate is still meaningfully higher than most contract rates. That means:
- Your payment comfort and approval amount may not line up
- Gifted down payments, bonuses, or variable income need to be documented properly
- Self‑employed first‑time buyers need extra lead time — not last‑minute scrambling
Getting this right early can expand options rather than limit them.
4. A Contrarian Take (Flagged Speculation)
Speculation: If rates ease modestly later this year, the bigger impact may be price pressure, not affordability relief. In other words, lower rates could bring more buyers back faster than supply improves. That’s another reason why readiness beats waiting.
What First‑Time Buyers Should Do This Week
- Run a true affordability review, not just a pre‑approval
- Stress‑test your payment against life changes (kids, career moves, parental leave)
- Decide your maximum comfort price, not just your maximum approval
- Build a purchase timeline that removes urgency from decision‑making
Closing Thought
Rates matter — but structure, timing, and preparation matter more. The best first‑time buyers aren’t predicting the market. They’re positioning themselves to move confidently when the right opportunity shows up.
Bank of Canada Rate Hold
January 28, 2026
The Bank of Canada decided to hold interest rates today, which means there was no change to the overnight rate. It remains at 2.25%. This is good news for many homeowners and buyers. Holding rates brings stability, and that’s helpful when planning your finances.
The Bank shared that inflation is staying close to its 2% target, which is a good sign. While there are still some global uncertainties, Canada’s economy is showing steady progress, and the Bank feels today’s rate level is appropriate for now.
Bank of Canada Governor Tiff Macklem said the economy is showing resilience despite some challenges. Because of that, the Bank wants more time and information before making its next move.
If you have a fixed-rate mortgage, nothing changes. If you have a variable-rate mortgage, your rate stays the same. If you’re thinking about buying, renewing, or refinancing, this pause gives us time to plan carefully and make smart choices. Some experts believe the Bank could begin cutting rates later this year if the economy needs more support. Others think the Bank is being cautious, and that caution helps avoid sudden changes that can catch homeowners off guard.
Right now, the best move is to stay informed and have a plan. Everyone’s situation is different, and small timing decisions can make a big difference. If you’re coming up for renewal, considering a move, or just want to understand how this affects your mortgage, I’m always happy to talk it through with you.
The next Bank of Canada rate announcement is scheduled for March 18, 2026, and I’ll continue to keep you updated.
Stay Connected
Stay in touch to ensure that you get the best rates, always!