If you’re a homeowner in the Greater Toronto Area — or anywhere in Ontario, Alberta, British Columbia, or Saskatchewan — you’ve likely noticed that mortgage rates have been creeping upward this spring. After months of relative stability, fixed mortgage rates in Canada have jumped significantly, and the timing couldn’t be more critical for the over one million Canadians facing mortgage renewals this year.

Here’s what’s happening, why it matters, and what you can do about it.

Fixed Mortgage Rates Have Climbed Sharply

As of April 2026, the best 5-year fixed mortgage rate in Canada sits around 4.04% through mortgage brokers and approximately 4.29% at major banks. That’s a notable increase from roughly 3.79% just two months ago in February.

The reason? Government of Canada 5-year bond yields — the benchmark that lenders use to price fixed-rate mortgages — have surged due to geopolitical tensions and global trade uncertainty. Rising oil prices and inflation concerns have added further pressure, pushing bond yields higher and taking fixed mortgage rates along with them.

It’s important to understand that fixed rates and variable rates move independently

. While the Bank of Canada’s overnight rate (currently held steady at 2.25% since October 2025) directly influences variable rates, fixed rates are driven by the bond market. So even though the Bank of Canada has paused rate changes for three consecutive meetings, fixed rates have still gone up.

The Mortgage Renewal Wave Is Here

Perhaps the biggest story in Canadian real estate right now is the massive wave of mortgage renewals hitting in 2026. Over one million Canadian homeowners are renewing their mortgages this year, and many of them originally locked in during the pandemic era of 2020 to 2021 when rates were as low as 1.5% to 2.0%.

For these homeowners, renewal means a significant jump in monthly payments. Industry estimates suggest increases of 15% to 20% compared to their current rates. For a family in Mississauga, Brampton, or Toronto carrying a $500,000 mortgage, that could mean hundreds of extra dollars per month.

This is exactly why it pays to work with an experienced mortgage broker who can shop multiple lenders to find you the most competitive rate rather than simply accepting your bank’s renewal offer.

Fixed vs. Variable: Which Should You Choose?

With the Bank of Canada holding steady at 2.25%, variable mortgage rates currently sit around 3.30% to 3.35%, which is roughly 0.50% to 0.70% lower than fixed rates. That gap makes variable rates attractive, but they come with the risk of future rate increases if inflation picks back up.

Fixed rates offer predictability and peace of mind, especially in uncertain times. The right choice depends on your financial situation, risk tolerance, and how long you plan to stay in your home. There is no one-size-fits-all answer, which is why personalized advice from a licensed mortgage professional matters.

What Should You Do Right Now?

If your mortgage is coming up for renewal in the next 6 to 12 months, do not wait until the last minute. Most lenders allow you to lock in a rate up to 120 days before your renewal date. Given the current upward trend in fixed rates, acting ea

rly could save you thousands over your next term.

Whether you are renewing, refinancing, buying your first home, or exploring options like a HELOC or debt consolidation, having the right mortgage strategy is essential in today’s market.

At KSD Mortgages, we help homeowners across the GTA and throughout Ontario, Alberta, British Columbia, and Saskatchewan navigate these shifting conditions. As a licensed mortgage broker, I work with multiple lenders to ensure you get the best rate and terms for your unique situation.

Ready to get ahead of the rate changes? Contact us today for a free consultation and let us make sure your mortgage is working for you, not against you.