At renewal the payment rises by less than the rate, but more of it goes to interest.

Because it renewed at a higher rate, and more of each payment now goes to interest. The payment rises by less than the rate, but the part that pays down what you owe gets smaller. This page also shows what the published averages counted, and the sum a lender uses.

Statistics Canada reported that average weekly earnings in Canada were $1,320.46 in January 2026, up 2.0% from a year earlier.

2.0% of $1,320.46 is $26.41 a week, or about $1,373 over a year. That is our arithmetic, not a Statistics Canada figure. Statistics Canada did not say that any person received a raise of that size.

The release explains why. In its own words: “Growth in average weekly earnings can reflect a range of factors, including changes in wages, composition of employment, hours worked and base-year effects.” If more lower-paid jobs are added, the average can fall even when nobody’s pay changed.

The national figure also hides the provinces. In the same release, average weekly earnings rose 0.4% in Alberta, 3.5% in Manitoba and 5.1% in Prince Edward Island.

An example, not real data. Ten people are in a room. Nine earn $50,000 a year. One earns $500,000. Add all ten and divide by ten, and the average is $95,000. Nobody in the room earns $95,000. Line them up from lowest to highest, and the person in the middle earns $50,000.

The average is the total shared out equally. The median is the person in the middle. When a few values are very large, the two can point different ways.

Mortgage renewals in 2026 show this. The Bank of Canada estimated that, compared with December 2024 payments, the average monthly mortgage payment could be 6% higher for people renewing in 2026. TD Economics, reading the same Bank of Canada analysis in March 2026, reported a median payment change of minus 0.3% for 2026 renewals. The average goes up, and the middle renewal goes very slightly down, because a smaller group sees large increases.

The Bank of Canada also estimated that about 60% of mortgage holders renewing in 2025 and 2026 would see a payment increase, and that holders of five-year fixed-rate mortgages renewing in 2026 would see an average increase of 20%. Which group a mortgage belongs to matters more than the national average.

CMHC, the national housing agency, surveyed more than 4,100 people who had renewed or refinanced a mortgage, or bought a home, in the previous 18 months. The survey ran in January 2026 and was published on 20 May 2026.

35% of renewers reported higher payments because of interest rate changes. Among them, payments went up an average of $375 a month. That is $4,500 over a year.

31% of all mortgage consumers in the survey said they had reduced, or would reduce, their other spending to lower the risk of missing a payment.

39% were concerned about making their payments, compared with 53% in CMHC’s 2025 survey.

Both things are true. Concern fell, and the people whose payments rose saw a large rise.

Two averages, two groups. The $1,373 is 2% of the average weekly pay of all employees. The $4,500 is the average increase among renewers whose payment went up. They come from different groups of people, so neither describes one household. Side by side, they show how a pay increase that matches the national average can be smaller than a renewal increase that matches the renewal average.

Every mortgage payment has two parts. One part pays down the amount owed, the principal. The other part is interest. The Financial Consumer Agency of Canada (FCAC) puts it this way: “If the interest rate goes up, more of your payment goes towards the interest, and less to the principal.”

An example, not a real mortgage. $400,000 borrowed over 25 years at 2%, with monthly payments. After five years, $335,081 is still owed. The mortgage renews at 4% for the remaining 20 years.

The rate doubled. The payment rose by about a fifth. The interest inside the payment almost doubled, and the amount paying down the mortgage fell.

That is why a renewal can feel worse than the payment change looks. More is paid each month, and less of it reduces what is owed.

When CMHC insures a mortgage, it limits the gross debt service ratio, or GDS, to 39%. CMHC’s formula is principal, plus interest, plus property taxes, plus heating, divided by gross annual income. If the home is a condominium, half of the condo fees are included.

You can run a rough version in a few seconds. Take one month of housing payments. Divide it by one month of pay before tax and deductions. For the full version, add property tax and heating.

39% is the line CMHC uses when it insures a mortgage at the start. A renewal at a higher rate raises the top of that sum, while the bottom may move much less. The ratio a mortgage was approved at does not stay where it was.

The Canadian Bankers Association reports mortgages three or more months in arrears at six large banks. For July 2026, it reported 14,270 mortgages in arrears out of 4,911,806, or 0.29%. The figure was between 0.27% and 0.29% in each month of 2026 up to July.

Most people are paying. The pressure is real, and it is not a wave of missed payments.

FCAC says to “Start shopping around a few months before the end of your term.” If your mortgage is with a federally regulated lender, such as a bank, the lender must provide a renewal statement at least 21 days before the end of the term.

You can negotiate. FCAC says “You may qualify for a discounted interest rate that is lower than the rate quoted in your renewal letter.” You can also switch lenders, and FCAC notes that switching can bring setup fees with the new lender, which may include discharge, registration, transfer or assignment fees.

In a TD survey of 1,502 adults in February 2026, 67% of homeowners said they felt uneasy about their mortgage renewal, and 9% said they would start renewal conversations with their lender or mortgage broker earlier.

Find the renewal statement, or the date your term ends.

Look at one payment. How much is interest, and how much is principal?

Divide one month of housing costs by one month of gross pay. Compare it with 39%.

A few months before the term ends, ask your lender for its rate, and ask at least one other lender.

Did most people’s payment go up at renewal in 2026?

Not on the Bank of Canada’s analysis as TD Economics reported it: the median change was minus 0.3%. About 60% of people renewing across 2025 and 2026 were expected to see an increase. The answer depends on when the mortgage started and at what rate.

Is $375 what every renewer paid?

No. The video said people who renewed saw their payment rise $375 a month. CMHC’s figure is the average among the 35% of renewers who reported higher payments.

The video said the interest part jumps by two thirds. Why does this page say it almost doubles?

They compare different payments. Against the very first payment of the original term, the interest part in this example rises by about two thirds. Against the last payment before renewal, which is the one a borrower sees change, it almost doubles.

The video showed 0.24% of mortgages in arrears. Why does this page say 0.29%?

0.24% was the Canadian Bankers Association figure for August and September 2025. The figure for July 2026 is 0.29%. Both are about a quarter of 1%.

Is 39% the rule for my renewal?

It is the limit CMHC uses to insure a mortgage. Other lenders and uninsured mortgages can use other limits. It is a reference line, not a test you pass or fail at renewal.

Every claim on this page was checked against these documents on 29 September 2026.

• Statistics Canada: The Daily, Payroll employment, earnings and hours, and job vacancies, January 2026
• Bank of Canada: Staff Analytical Note 2025-21, How will mortgage payments change at renewal? An updated analysis
• TD Economics: Mortgage Renewal Mission Possible: The Final Reckoning
• TD: Household budgets tighten amid mortgage renewals as buyer intent builds, TD survey finds
• CMHC: 2026 Mortgage Consumer Survey · News release, 20 May 2026 · Calculating GDS and TDS
• Canadian Bankers Association: Residential mortgages in arrears, July 2026
• Financial Consumer Agency of Canada: Renewing your mortgage · Interest on mortgages

Watch · 9:50

Your Mortgage Renewal Went Up $375. Your Raise Didn't Cover It. Published 27 August 2026. Loads on click. Nothing is requested from YouTube until you ask.

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