Should I lock in my variable-rate mortgage in April 2026?

With the lowest variable rates at 3.35% and 5-year fixed rates starting at 4.09%, the gap has widened. However, if the BoC starts hiking toward 2.75% as forecast, variable rates will rise. A 2 or 3-year fixed term is worth exploring as it buys certainty without a long commitment.

Is my HELOC rate going to increase in 2026?

Yes, HELOC rates move directly with prime. If the Bank of Canada raises rates as Scotiabank and National Bank forecast (to 2.75% by year-end), you're exposed to every increase. Consider converting a portion into a fixed-term product now.

When should I start my mortgage renewal process?

Start now — ideally 6 months before maturity. Lenders allow early conversations and rate holds for up to 120 days. If your current rate is above 5%, breaking early may already save you money. Over 1 million Canadians are renewing in the 2025-2027 wave.

When is the next Bank of Canada rate decision?

The next Bank of Canada interest rate announcement is April 29, 2026, accompanied by a full Monetary Policy Report. The BoC has held at 2.25% for three consecutive meetings. On April 1, it revealed it will rely on judgment more than usual given Iran war uncertainty.

THEJUNEJA GROUP

Rate Advisory — April 2026 Update

Rising Rates: What You Should Do Right Now

A note for clients and partners regarding the shifting rate environment. We are not selling anything.

5 min read

•Saminder Juneja, Mortgage Broker

What Is Happening Right Now

The Bank of Canada's rate-cutting cycle is effectively over. After bringing the overnight rate from 5% down to 2.25%, the BoC has held steady for three consecutive meetings. On April 1, 2026, the Bank revealed it will "rely on judgment more than usual" given unprecedented uncertainty. Most major economists now expect rates to hold — or rise — through the remainder of 2026.

Scotiabank & National Bank

2.75%

Policy rate forecast by year-end 2026

RBC Economics

3.25%

Projected by end of 2027

Next BoC Decision

Apr 29

With Monetary Policy Report

"After holding through 2026, we expect the BoC will lift the policy rate to 2.75% in early 2027."

— Oxford Economics

The war in Iran has added a critical pressure point. Oil prices surged, inflation expectations jumped, and the 5-year GoC bond yield remains above 3.00%. As of April 1, the lowest 5-year fixed mortgage rate in Canada is 4.09%, and variable rates start at 3.35%. Fixed mortgage rates have already moved significantly higher.

Find Your Situation Below

Not every section applies to you. Read the one that does.

If You Have A

Variable-Rate Mortgage

The era of falling payments is behind you. With variable rates around 3.55% and short-term fixed rates in the high 3s, the gap has closed enough that locking in deserves a serious conversation.

A 2 or 3-year fixed term is worth exploring — it buys certainty without a long commitment.

If You Have A

Balance on Your HELOC

Your rate moves directly with prime — every Bank of Canada hike hits your balance immediately. If you're carrying a meaningful amount, you're exposed to every rate increase that comes.

Consider converting a portion into a fixed-term product now, before hikes arrive. This is one of the most overlooked risks in a rising rate environment.

If Your

Mortgage Renews in the Next 2 Years

Don't wait for your renewal letter. Lenders allow you to start the conversation well in advance, and in many cases an early renewal or rate hold makes financial sense.

If your current rate is above 5%, breaking early and resetting today — even after penalties — may already save you money.

Run the numbers now, not six months from now.

If You're

Planning to Buy in the Next 6 Months

Get a pre-approval and lock in a rate hold for 120 days. It costs nothing, protects you from further increases while you search, and gives you a clear number to plan around.

If rates drop before you close, you keep the lower rate. There is no downside to doing this today.

Ready to talk through your numbers?

Every situation is different, and honest advice sometimes means telling you to do nothing. I'm available for a free 15-minute call — no obligation.

Mortgage Renewal 2026: Rates, Traps & Negotiation Strategy

If rates are rising into your maturity date, the 2026 renewal guide shows how to lock in and negotiate.

Read the guide

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