Canada Faces 60% Mortgage Renewals 2025-26 Amid Rate Volatility

Mortgage rates in the U.S. and Canada remain elevated in mid-2025, with 30-year fixed rates near 6.6% to 6.8%, causing increased monthly payments for many homeowners upon renewal, especially those with fixed-rate mortgages. In Canada, about 60% of mortgages will renew in 2025 or 2026, with fixed-rate borrowers potentially seeing payment hikes of 15 to 20%, while variable-rate borrowers might benefit from small declines. U.S. mortgage rates have shown modest recent declines, offering slight relief to buyers and refinancers, though rates are still high compared to previous years, and lending remains tight. President Trump has called for the Federal Reserve to cut interest rates to make homebuying more affordable, blaming Fed Chair Jerome Powell for high prices, but experts warn that lowering rates might not reduce mortgage rates if it undermines inflation-fighting credibility. Despite high rates, buyer interest remains steady, and some borrowers are exploring alternative loan options such as FHA or VA loans. Refinancing into shorter-term mortgages can reduce total interest paid, although monthly payments may increase, highlighting the trade-offs borrowers face in the current rate environment.