Mortgage renewals in B.C. in 2026 should be manageable, say experts

Experts say 2026 mortgage renewals in British Columbia should be manageable as delinquency rates remain a fraction of one per cent and many 2021 borrowers have paid down substantial principal.

Mortgage renewals in British Columbia in 2026 are expected to be manageable, according to industry experts. Many homeowners who took five-year mortgages in 2021 now face higher monthly payments because rates were historically low then. Others who took three-year mortgages in 2023 may see lower rates at renewal but have had less price appreciation. Officials note that mortgage delinquency remains a small share of loans despite a recent uptick. Key details: - Rate comparisons reported by Ratehub (Jan. 27, 2026): the five-year fixed rate for insured mortgages was 3.84% versus 1.39% in January 2021, and the five-year variable rate was 3.35% versus 0.99% in January 2021. - CMHC reported B.C.'s mortgage delinquency rate at 0.19% in the third quarter of 2025, up from a reported low of 0.10% in the second half of 2022; the Vancouver region's delinquency rate was 0.18% in the third quarter of 2025, reported as higher than an earlier low. - Experts said 2021 borrowers have likely paid down significant principal (an estimate cited was about $100,000) and may have more home equity, while many 2023 borrowers saw less price appreciation and therefore may have fewer options around renewal. - Industry commentary noted that stress tests provide a theoretical buffer (qualifying at a rate about two percentage points higher than the offered rate) and that the 2024 federal budget strengthened the Canadian Mortgage Charter with measures such as temporary amortization extensions and waiving interest-on-interest in some cases. - Lenders may offer options such as consolidating other debts into a mortgage or using a home equity line of credit; variable rates track the Bank of Canada's policy rate, and fixed rates follow bond yields, with forecasts described as uncertain. Summary: Many people who took five-year mortgages in 2021 face higher payments at renewal but often have smaller outstanding balances and some equity to ease the change, while some 2023 borrowers may benefit from lower rates but have experienced less price growth. Delinquency rates have risen from earlier lows but remain a small share of loans. Undetermined at this time.