Thinking about refinancing your mortgage in 2026? It’s a smart move, whether you want to lower your monthly payments, tap into your home’s equity for renovations, or consolidate some debts. But with so many options out there, figuring out who to go with can feel like a puzzle. This guide is here to help you sort through the noise and find the best mortgage companies to refinance with, making sure you get the best deal possible for your financial situation.

Key Takeaways

• When your mortgage term is up for renewal in 2026, don't just accept the first offer from your current lender. You have the power to shop around for better rates and terms, much like a free agent.
• Choosing between a fixed or variable rate mortgage depends on your comfort with risk and your budget. Fixed rates offer predictable payments, while variable rates can offer savings but come with potential fluctuations.
• Independent mortgage brokers can access a wider range of lenders and often secure better rates than you might find directly at a big bank, as they work for you, not the lender.
• Refinancing can be a useful tool for debt consolidation, allowing you to pay off high-interest debts like credit cards with a lower mortgage rate, potentially saving you a lot on monthly payments.
• Discount and wholesale lenders often offer competitive rates and sometimes more flexible penalty clauses compared to big banks, though they might not be as widely advertised.

1. Understanding Fixed vs. Variable Rates

When you're looking at refinancing, one of the first big decisions you'll face is whether to go with a fixed or a variable interest rate. It sounds simple, but it can really change how much you pay over the life of your loan, and how much your monthly payments might jump around.

A fixed rate means your interest rate stays the same for the entire term of your mortgage, usually 5 years, but sometimes 3 or even longer. This is great because you know exactly what your principal and interest payment will be every month. No surprises. It makes budgeting a breeze, and if interest rates go up a lot, you're protected. Think of it like locking in the price of your groceries for a year – you know what you're going to pay, no matter what happens at the store.

Variable rates, on the other hand, are tied to a benchmark rate, often the Bank of Canada's prime rate. This means your rate can go up or down as the market changes. When the Bank of Canada cuts rates, your variable rate usually drops too, which can save you money. But, if they raise rates, your payment goes up. It's a bit like riding a rollercoaster – potentially thrilling when it goes down, but a little nerve-wracking when it climbs.

Here’s a quick look at the pros and cons:

• Fixed Rates:
  • Predictable monthly payments.
  • Protection from rising interest rates.
  • Easier for long-term financial planning.
• Variable Rates:
  • Potential to save money if rates fall.
  • Often start with a lower rate than fixed options.
  • Payments can increase if rates rise.

The choice really comes down to your comfort level with risk and your financial situation. If you value stability above all else and want to avoid any payment shocks, a fixed rate is probably your best bet. But if you're okay with some fluctuation and want the chance to benefit from falling rates, a variable rate might be worth considering. It's also worth noting that breaking a variable rate mortgage often comes with lower penalties than breaking a fixed rate one, which can offer more flexibility down the road.

For 2026, the outlook suggests a bit more stability for variable rates compared to recent years, but the market can always throw curveballs. Fixed rates, especially for 5-year terms, are still a popular choice for many because they offer that peace of mind. It’s a good idea to compare offers for both types to see what makes the most sense for your specific situation.

2. The Independent Broker Advantage

When you're looking to refinance, going with a bank might seem like the easiest route. They're familiar, and you probably already have an account. But here's the thing: banks can only offer you their own products. It's like going to a single store for all your shopping needs – you get what they have, not necessarily what's best for you.

An independent mortgage broker, on the other hand, works for you. We have access to a wide range of lenders, from big banks to smaller, specialized companies. This means we can shop around and compare rates and terms from dozens of different places to find the best fit for your specific situation. This ability to compare multiple options is the biggest perk of working with a broker.

Think of it like this:

• More Choices: Access to products from over 20 lenders, not just one.
• Better Rates: We often get wholesale rates that are lower than what banks offer to the public.
• Personalized Advice: We're not tied to one institution, so our advice is unbiased and focused on your financial goals.
• Flexibility: We can work around your schedule, not just bank hours.

Working with a broker means you have an advocate in your corner. We handle the legwork of comparing offers, explaining the fine print, and negotiating on your behalf. It's about finding the right mortgage solution, not just the one that's most convenient for the lender.

We can also help you explore different mortgage types, like fixed versus variable rates, and adjust things like your amortization period to better suit your budget or payoff timeline. It’s a more tailored approach to a really big financial decision.

3. Mortgage Renewals: Don't Just Sign The Letter

So, your mortgage term is up for renewal in 2026. Your lender will probably send you a letter with their offer. Now, it's super tempting to just sign it and get it over with, right? But hold on a second. Lenders often send renewal offers that aren't the best deal out there, hoping you'll just go along with it because switching seems like too much work.

Think of it this way: when your term is up, you're basically a free agent. You have options! It's the perfect time to see what else is available. Many homeowners are in this boat. For instance, CMHC data suggests over a million mortgage holders will renew in 2026 alone.

Here’s what can happen, and what you can do:

• Payment Shock: If you had a fixed rate from a few years back, say around 1.39%, your payments could jump significantly. Renewing at current rates might mean paying hundreds more each month. For example, a $465,000 balance renewing at 3.94% could mean an extra $576 a month compared to your old payment.
• Variable Rate Holders: If you have a variable rate, you've likely already seen some payment increases. Renewing might still mean a small bump, but it's usually less dramatic than for fixed-rate borrowers.
• Shop Around: Don't be afraid to look at other lenders. You can often switch without penalty, especially if you're at the end of your term. This is where comparing offers becomes really important.
• Adjust Your Terms: You might be able to change your amortization period. Lengthening it can lower your monthly payments, or shortening it can help you pay off the mortgage faster.
• Rate Type: Consider if you want to stick with a fixed rate for predictability or switch to a variable rate if you think rates might drop. It really depends on your comfort level with risk and what's happening in the market.

It's easy to get caught up in just the interest rate, but don't forget about the other details. Things like prepayment penalties and how the lender handles rate changes can make a big difference over time. Always read the fine print and ask questions.

Working with a mortgage broker can be a game-changer here. They can shop your renewal to multiple lenders, often getting you better rates than your current bank is offering. It's about making sure you're not just accepting the first offer that lands on your doorstep.

4. Refinancing For Debt Consolidation

Got a pile of high-interest debt hanging over your head? You know, like those credit cards that seem to just keep going up, or maybe a personal loan with a payment that feels way too big each month? A lot of homeowners in Edmonton are in the same boat. They've built up equity in their homes over the years, but they're also juggling other debts that are costing them a fortune in interest. Refinancing your mortgage can be a smart way to tackle this.

Think about it: credit card interest rates can easily be in the 19-29% range. That's a huge amount to pay just to carry a balance. Even if mortgage rates have gone up a bit lately, they're still way, way lower than what you're likely paying on those other debts. By refinancing, you can pull out some of the equity you've built up in your home – up to 80% of its value, in many cases – and use it to pay off those expensive debts all at once.

Here's how it can help:

• Lower Your Monthly Payments: Combining all your debts into one mortgage payment usually means a significantly lower total monthly outgoing. This can free up hundreds of dollars each month.
• Save Money on Interest: Paying off high-interest debt with a lower-interest mortgage means you'll pay less interest over time. That's money back in your pocket.
• Simplify Your Finances: Instead of juggling multiple payments to different creditors, you'll have just one mortgage payment to manage. It makes budgeting a lot easier.
• Improve Your Cash Flow: With lower monthly payments and less interest paid, you'll have more breathing room in your budget. This extra cash can go towards savings, investments, or even home improvements.

Let's say you have $30,000 in credit card debt at a hefty 19% interest. Your minimum payments might be high, but you're barely making a dent in the actual amount you owe. If you roll that $30,000 into your mortgage at, say, a 6% rate, your monthly payment for that portion of the debt could drop considerably. It's a game-changer for your financial health.

Refinancing for debt consolidation isn't just about getting rid of debt; it's about restructuring your finances to work for you. It's a way to use the asset you've worked hard to build – your home – to gain control over your other financial obligations and create a more stable path forward.

It's not a magic fix, of course. You're essentially moving unsecured debt into a secured loan, which means your home is on the line. But for many, the financial relief and long-term savings make it a really attractive option. It's definitely worth exploring if you're feeling the squeeze from multiple high-interest debts.

5. Refinancing For Renovations And Investment

So, you've got some equity built up in your home, and you're thinking about what's next. Maybe you're dreaming of a kitchen remodel that actually works for your family, or perhaps you're eyeing a new property to rent out. Refinancing your mortgage can be a smart way to tap into that equity for these kinds of projects.

Accessing your home's equity can turn those renovation dreams into reality or help you expand your investment portfolio. It's not just about fixing up your current place; it's also about using your home as a stepping stone for future financial growth.

Here's a quick look at how refinancing can help:

• Home Improvements: Fund that much-needed renovation. A better kitchen, an updated bathroom, or even a new deck can make your home more enjoyable and potentially increase its value. Think of it as investing in your living space.
• Investment Properties: Use the cash from refinancing as a down payment on a rental property. This can be a way to start building a real estate investment portfolio, generating passive income over time.
• Debt Consolidation (as a secondary benefit): While the primary focus here is growth, if you happen to have high-interest debt, consolidating it during the refinancing process can free up more cash flow, which you could then direct towards your renovation or investment goals.

It's important to remember that while refinancing can be a great tool, it does mean adjusting your mortgage. You'll be taking on a new loan, potentially with a different interest rate and term, so it's wise to compare offers carefully.

When you refinance for renovations or investment, you're essentially betting on the future value of your property or your ability to generate returns. It's a strategic move that requires careful planning and a clear understanding of the costs and potential benefits involved. Make sure you've crunched the numbers to see if the project makes financial sense for you.

6. Discount Lenders And Wholesale Lenders

When you're looking to refinance, don't overlook the powerhouses you might not see advertised on TV. Discount lenders and wholesale lenders are a huge part of the mortgage scene, and they often play a big role in keeping the major banks honest with their rates. These companies are massive, managing billions in mortgage assets, but they tend to put their money into offering better rates rather than big marketing campaigns. This means you can often find more competitive pricing with them.

Their lower overhead often translates directly into better interest rates for you, especially on insured or insurable mortgages up to $1,000,000. It's worth shopping around with these lenders because they can provide significant savings. Plus, some of them might have more flexible penalty structures if you ever need to pay out your mortgage early, which is a nice bit of breathing room.

Here's a quick look at what makes them stand out:

• Competitive Rates: They typically offer lower interest rates than what you might find at a traditional bank.
• Flexible Penalties: Often have more favorable terms if you need to break your mortgage.
• Streamlined Process: Many focus on efficiency, making the refinancing process smoother.

It's a good idea to compare offers from lenders like MCAP, First National, and CMLS. These companies are serious players in the market, and getting quotes from them is a smart move when you're comparing your options. Remember, the Bank of Canada's prime rate is expected to stay steady for a while, so locking in a good rate now is key. You can check out current mortgage rate comparisons to see how they stack up.

These lenders operate differently than the big banks. They often work through mortgage brokers, which allows them to pass on savings directly to consumers. Think of them as the background players who drive down prices for everyone.

7. Credit Union Mortgage Rates

Credit unions are a really interesting part of the mortgage market, especially if you're looking for something a bit different from the big banks. They're owned by their members, which often means they're focused more on the community and less on just making a profit for shareholders. This can translate into some pretty competitive mortgage rates, sometimes even beating what the major banks are offering.

They often have special rate promotions that are worth checking out.

When you're thinking about refinancing, credit unions can be a solid option. They might not have the same kind of advertising budget as the big players, but their rates can be surprisingly good. It's a good idea to compare their offers alongside other lenders.

Here are a few things to keep in mind about credit unions:

• Member-Owned: This structure can lead to a more customer-centric approach.
• Community Focused: They often have a strong local presence and understand regional market needs.
• Competitive Rates: Don't overlook them; their specials can be quite attractive.
• Regulation: In places like Ontario, they're regulated provincially, which gives them a bit of unique flexibility.

While they can offer great rates, it's worth noting that their fine print, particularly regarding penalties, might be closer to what you'd see with larger institutions. So, always read the details carefully.

Credit unions are a unique segment of the mortgage landscape. Their member-owned structure often allows them to offer competitive rates and a community-focused approach, making them a valuable option for many borrowers looking to refinance.

8. Medium Sized Bank Mortgage Lenders

When you're looking at refinancing, don't forget about the medium-sized banks. These institutions often strike a nice balance between the personalized service you might find at a credit union and the broader reach of the big national banks. They might not have the same advertising budget as the giants, but they can offer some really competitive rates and flexible terms.

Think of them as the reliable middle ground. They're big enough to have solid financial backing and a good range of mortgage products, but often small enough to give you more individual attention. This can make a difference when you're trying to sort out the best refinance option for your specific situation.

Here are a few examples of medium-sized banks to consider:

• National Bank
• Manulife
• Laurentian Bank
• HSBC Bank Canada
• Wealth One Bank of Canada

These lenders can be a great place to compare rates, especially if you're looking for something beyond the standard offerings. They often have dedicated mortgage specialists who can guide you through the refinancing process without the high-pressure sales tactics you sometimes encounter elsewhere. It's worth checking out their current refinance specials, as they can sometimes surprise you with what they have available. Remember to compare their refinance options with other lender types, like those offering discounted mortgage rates, to ensure you're getting the best deal possible for your situation.

9. Big Bank Mortgage Rate Comparison

When you think about getting a mortgage, big banks probably come to mind first. They're familiar names, and many people feel comfortable walking into a branch. But when it comes to refinancing, are they really the best option for rates? It's worth looking into.

Big banks often have posted rates that might not be the most competitive. They sometimes use negotiation tactics in their branches, which can mean you're not always getting the lowest possible rate, especially on refinances or mortgages that don't have government insurance. Also, be aware that the penalties for breaking a mortgage with a big bank can sometimes be higher compared to other lenders.

Here's a quick look at some of the major players you might consider:

• TD Mortgage Rates
• CIBC Mortgage Rates
• BMO Rates
• Scotiabank Rates
• RBC Rates

It's a good idea to compare their offers, but don't stop there. Remember, they can only offer their own products. You might find better deals elsewhere.

The Bank of Canada has kept its overnight rate steady, hovering around 2.25%. This has influenced fixed mortgage rates, generally keeping them in the 3.9% to low 4.0% range. While some lenders might slightly lower their profit margins to attract business, the overall pressure on fixed rates is pretty neutral right now. Variable rates have also stabilized, and deeper cuts are unlikely unless there's significant negative economic news.

While big banks offer convenience and a sense of security for some, it's smart to shop around. Comparing their rates against other types of lenders, like discount or credit union options, is a key step in making sure you get the best deal for your refinance.

10. The 2026 Outlook: Navigating The Edmonton Market

As we look ahead to 2026, the Edmonton housing market is shaping up to be an interesting place for homeowners thinking about refinancing. Things have been pretty stable here, especially when you compare us to some other big Canadian cities. We're seeing people move here, which is good for the economy, but it also means competition for homes can get pretty real.

This means having a solid plan before you even think about talking to lenders is super important.

Here’s what you should keep in mind for refinancing in Edmonton next year:

• Inventory is still a bit tight: Don't expect a huge selection of homes, which can affect property values and how much equity you have available.
• Rates are doing their own thing: While they might not be at their lowest, they're still a lot better than what you'd pay on credit cards or personal loans.
• Local knowledge matters: Understanding the specific neighborhoods and market trends in Edmonton can help you make better decisions about when and how to refinance.

Refinancing isn't just about getting a new rate; it's about using your home's value to improve your financial situation. Whether that means paying down high-interest debt, funding home improvements, or even buying another property, a well-timed refinance can make a big difference.

If your mortgage is up for renewal in 2026, don't just accept the first offer your current lender sends. You're in a strong position to shop around and find a better deal. It might seem like a lot of work, but comparing offers from different banks and credit unions could save you a significant amount of money over the life of your loan. It’s worth the effort to see what’s out there.

Wrapping It Up

So, that’s the lowdown on refinancing for 2026. It’s not just about snagging a lower interest rate, though that’s a big part of it. Whether you’re looking to ditch some high-interest debt, fund a home makeover, or just get a better handle on your monthly bills, refinancing can be a smart move. Remember, the market changes, and what works today might not be the best bet tomorrow. Taking the time to compare your options and work with a pro who actually has your back is key. Don't just go with the first offer you get – do your homework and make sure your mortgage is working for you, not the other way around.

Frequently Asked Questions

What's the smallest amount of money I need to put down to buy a house in Edmonton in 2026?

For houses costing $500,000 or less, you can put down as little as 5%. If the house is between $500,000 and $999,999, you'll need 5% for the first $500,000 and 10% for the rest. For homes a million dollars or more, you need a 20% down payment. You can use a mortgage calculator to see how different amounts work.

Should I get a fixed or variable mortgage rate in 2026?

That really depends on what you're comfortable with and your financial goals. Fixed rates offer the same payment for the whole term, making budgeting easy. Variable rates can change with the market, which might save you money over time but also means your payments could go up. We can look at your situation to figure out the best choice for you.

Can I use refinancing to pay off my credit cards and car loan?

Absolutely! It's a smart move called debt consolidation. You can borrow against the value of your home to pay off loans with high interest rates, like credit cards. This means you'll have just one lower monthly payment instead of several, which can save you a lot of money and make things easier to manage.

How much does it cost to use a mortgage broker?

Usually, you don't pay anything out of your own pocket. The mortgage company pays the broker a fee once your loan is approved. This means you get expert help, advice on getting the best rate, and help with all the paperwork without it costing you extra.

What happens if I need to end my mortgage early?

Sometimes life throws curveballs, and you might need to move or pay off your mortgage sooner than planned. If you break your mortgage, there's usually a penalty. For fixed-rate mortgages, it could be a few months' interest or something called the Interest Rate Differential, which can be quite a bit. For variable rates, it's typically three months' interest. It's important to know these costs upfront.

Why is it important to compare mortgage offers when my term is ending?

When your mortgage term is up, your lender will send you a renewal offer. Don't just accept it right away! They might not offer you the best rate because they think you won't bother looking elsewhere. You're free to shop around and compare offers from many different lenders to make sure you're getting the best deal possible.