What Will Interest Rates Look Like in 2026? What It Means for Your Mortgage
- Edith Parinas
- Jul 16
- 2 min read
The mortgage landscape is always shifting — and if you’re planning to buy, renew, or refinance in 2026, the interest rate environment could make a big difference in your options.
Here’s what you need to know now so you can be ready later.
🔺 If Interest Rates Rise: What to Watch For
Economists are closely monitoring inflation, global uncertainty, and policy changes — all of which will influence whether the Bank of Canada raises rates again in 2026.
If rates go up, here’s what could happen:
You may qualify for a smaller mortgage. The stress test becomes harder to pass, especially if your income isn’t rock solid.
Monthly payments could increase, especially for variable-rate holders or those renewing a fixed term.
Lenders may tighten guidelines. In uncertain markets, some lenders become more conservative with approvals.
What you can do:
✅ Start preparing your financial documents now
✅ Reduce high-interest debt
✅ Maintain or improve your credit score
✅ Explore ways to strengthen your income structure — especially if self-employed
🔻 If Interest Rates Fall: How to Take Advantage
There’s also hope that rates could drop again in 2026, especially if inflation stabilizes or the economy slows. And if they do, opportunity knocks.
Here’s what a lower-rate environment might bring:
Better refinancing options, Lower rates = lower payments = possible access to equity
Easier to pass the stress test, meaning you may qualify for more home or reduce your amortization.
Potential savings by switching lenders If your current lender doesn’t offer competitive renewal terms, lower rates can make shopping around well worth it.
What you can do:
✅ Stay in contact with your mortgage advisor (hi again! 😉)
✅ Set a calendar reminder 6 months before your renewal
✅ Download my Mortgage Renewal Roadmap to be fully prepped
🧭 Navigating Uncertainty Like a Pro
You don’t need a crystal ball to make smart mortgage decisions — but you do need a game plan.
Whether rates rise or fall, your financial picture, goals, and timeline should drive your choices — not the headlines. That’s where having a trusted advisor (yep, me!) makes all the difference.
Let’s look at your current mortgage and goals together, and decide whether you should:
Lock in before rates rise
Wait and watch
Explore options for early renewal or refinance
💬 Final Word: Don’t Wait for the Market to Decide For You
Being prepared is always in style — especially when it comes to the biggest financial commitment most people make. If you want to explore your options, now is the perfect time.
📆 Let’s book your Mortgage Check-In Call — no pressure, just personalized advice.
Grab the Freebie:👉 Mortgage Renewal Roadmap: Your Guide to a Smarter, Stress-Free Renewal
Let’s keep more money in your pocket and stress off your plate — no matter what 2026 brings.
– Edith Parinas
'The Mortgage Broker ~ The Yogi ~ The Blogger'
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