The March 2026 Bank of Canada decision just came down — and for the third consecutive meeting, the overnight rate stays at 2.25%. For Surrey homeowners watching the news from their living rooms in Fleetwood or Newton, this might feel like a non-event. But if your mortgage is coming up for renewal in the next 12 months, this hold is the loudest signal you will get all year.
Here is what most people miss: a rate hold does not mean rates are stable. It means the Bank of Canada is stuck between inflation that will not quit and an economy that cannot afford another squeeze. For you, that translates into a narrow window where smart action can save you tens of thousands of dollars over your next term. At Kraft Mortgages Canada Inc., where we have managed over $5 billion in mortgage originations across BC, Alberta, and Ontario, we are seeing a surge of homeowners who waited too long and are now scrambling. Do not be one of them.
Why the March 2026 Hold Matters More Than You Think
Time to read: 2 min
The Bank of Canada has now held rates at 2.25% for three straight decisions — January, March, and looking ahead to the next announcement on April 29. On paper, that sounds like stability. Under the surface, it is anything but.
Consider what Governor Tiff Macklem is balancing right now:
- Sticky inflation. The Consumer Price Index (CPI) remains above the 2% target, driven partly by shelter costs and imported inflation from global energy markets.
- Housing market fragility. Sales in the Fraser Valley have been softening. A rate hike could push buyer demand off a cliff, particularly in price-sensitive markets like Surrey and Langley.
- Trade uncertainty. Ongoing tariff tensions with the United States are creating downward pressure on the Canadian dollar, which adds inflationary pressure on imported goods.
The result? The Bank of Canada is in a holding pattern — not because rates are where they should be, but because moving in either direction carries significant risk. This is the exact environment where mortgage brokers in Surrey create the most value. While banks offer you whatever their current posted rate is, a broker shops 50+ lenders to find the product that actually fits your situation.
The Renewal Trap: Why Your Bank Is Hoping You Do Nothing
Time to read: 3 min
Here is a number that should keep you up at night: according to the Canada Mortgage and Housing Corporation (CMHC), roughly 45% of all mortgages in Canada are scheduled to renew between 2025 and 2027. That is millions of homeowners who locked in rock-bottom rates during 2020-2021 and are now facing a rate shock at renewal.
If you are one of them, your bank is counting on you to simply sign the renewal letter they mail you 90 days before your term ends. That letter will almost certainly offer you a rate that is 1-2% higher than what you could get on the open market.
The math is brutal:
- Mortgage amount: $650,000 (average Surrey single-family)
- Old rate (2021): 1.89% 5-year fixed
- Bank renewal offer: 4.89%
- Better broker rate: 3.89%
- Monthly difference: $407/month
- 5-year cost of doing nothing: $24,420
That is not a rounding error. That is a down payment on a second property. That is two years of RESPs for your kids. That is money your bank is happy to take from you simply because you did not make a 15-minute phone call.
Do not guess what you qualify for. Use our payment calculator to see exactly what your monthly payment looks like at today’s best rates — then compare it to your bank’s renewal offer.
3-Year vs 5-Year Fixed: The Decision That Could Define Your Next Decade
Time to read: 3 min
This is the most common question we get at Kraft Mortgages, and the answer has changed dramatically since the start of 2026. The old wisdom — “always go 5-year fixed for safety” — no longer applies in a world where the Bank of Canada may cut rates by the end of this year or early 2027.
Here is the comparison for a $650,000 mortgage in Surrey today:
| Feature | 3-Year Fixed | 5-Year Fixed |
|---|---|---|
| Current Best Rate | ~4.49% | ~4.69% |
| Monthly Payment | $3,636 | $3,720 |
| Rate Flexibility | Renew sooner if rates drop | Locked in for 5 years |
| Break Penalty (IRD) | ~$4,800 (at 1 year) | ~$11,200 (at 1 year) |
| Best If… | You believe rates will fall | You want absolute certainty |
Our recommendation for Surrey homeowners in 2026: if you can stomach a small rate premium, the 3-year fixed is the smarter play. Here is why — if the Bank of Canada begins cutting rates in late 2026 or early 2027, you will be free to renegotiate at a lower rate within 36 months. If you lock into a 5-year term now, you could be stuck paying above-market rates while your neighbours refinance at lower ones.
But this is not a one-size-fits-all decision. A mortgage broker in Surrey BC will look at your specific situation — your risk tolerance, your future plans (are you selling in 3 years? renovating? adding a suite?), and your income trajectory — before making a recommendation. That personalized advice is exactly what you do not get from an online rate comparison tool.
Variable-Rate Holdouts: Should You Stay or Switch?
Time to read: 2 min
If you are one of the many Surrey homeowners still on a variable-rate mortgage, you have been on a wild ride. After peaking above 7% in late 2023, variable rates have come down significantly as the Bank of Canada cut rates throughout 2024 and into 2025. But with the current pause at 2.25%, the question is: do you lock in now or ride it out?
Switch to fixed if:
- Your trigger rate is still uncomfortably close to your current rate
- You are losing sleep over monthly payment fluctuations
- Your mortgage renewal is within 12 months anyway
- You plan to break your mortgage within 3 years (variable penalties are typically just 3 months’ interest — much cheaper than IRD)
Stay variable if:
- You believe the Bank of Canada will resume cutting rates by late 2026
- You have financial flexibility to absorb potential rate increases
- Your variable rate is already well below current fixed rates
The key insight: converting from variable to fixed is often free or very low cost at renewal time. But converting mid-term can trigger a penalty. If you are unsure, start by running the refinance calculator to see your numbers side by side.
What Self-Employed Surrey Homeowners Need to Know at Renewal
Time to read: 2 min
Surrey has one of the highest concentrations of self-employed professionals in BC — trucking company owners, contractors, consultants, and small business operators who keep the Fraser Valley economy moving. If you are self-employed, mortgage renewal is not as simple as signing a letter.
The landscape has tightened since 2025. Lenders are asking for more documentation, not less. Here is what you need to have ready:
- 2 years of T1 Generals and Notice of Assessments — no exceptions at most A-lenders
- Business financial statements — if your corporation’s income is what you are relying on
- Bank statements (12-24 months) — some B-lenders accept “stated income” programs using bank statement averaging
- HST/GST returns — some lenders now request these to verify revenue
This is where working with a specialized mortgage broker in Surrey makes an enormous difference. We have 18+ years of experience navigating complex self-employed files. We know which lenders have relaxed their criteria recently, which ones offer stated-income programs for business owners, and how to present your financial picture in the best possible light.
Do not let tighter lending rules catch you off guard. If you are self-employed and your renewal is within 6 months, the time to start preparing your paperwork is now.
The Renewal Checklist: What to Do This Week
Reading about mortgage strategy is useful. Taking action is what saves you money. Here is your concrete to-do list:
- Step 1: Find your renewal date. Check your current mortgage statement or call your lender. If it is within 12 months, you should already be talking to a broker.
- Step 2: Get your bank’s renewal offer in writing. You need a baseline to compare against. Do not accept a verbal quote.
- Step 3: Run your numbers. Use our affordability calculator to understand your current financial position and stress-test against potential rate changes.
- Step 4: Contact a broker. A good broker will comparison-shop 50+ lenders and present you with options tailored to your specific needs. This takes about 15 minutes of your time and could save you thousands.
- Step 5: Consider debt consolidation. If you have high-interest debt, your renewal is the perfect time to roll it into your mortgage. Use our debt consolidation calculator to see how much you could save.
Frequently Asked Questions About Mortgage Renewal in 2026
When should I start shopping for a renewal rate?
Start 4-6 months before your renewal date. A mortgage broker in Surrey can secure a 120-day rate hold, which protects you from rate increases while you shop. If rates drop during that window, most holds allow you to capture the lower rate.
Can I switch lenders at renewal without paying a penalty?
Yes. At the end of your term, you can switch to any lender without incurring a prepayment penalty. You will need to re-qualify (income verification, credit check, property appraisal in some cases), but there is no break fee. This is exactly why you should never simply accept your bank’s renewal offer.
Will my home be reappraised at renewal?
It depends on the lender. Some will accept the original appraisal if it is recent enough. Others, particularly if you are switching lenders, may require a new appraisal. Surrey home values have appreciated significantly — this could work in your favour if your loan-to-value ratio has improved.
What if I want to access my home equity at renewal?
This is one of the biggest advantages of renewal. You can add a HELOC, increase your mortgage amount for renovations, or consolidate debt — all without breaking your mortgage early. With Surrey home prices where they are, many homeowners are sitting on substantial equity they are not using.
Is it worth switching from a bank to a monoline lender?
In most cases, absolutely. Monoline lenders (companies that only do mortgages, like First National, MCAP, or RMG) often offer significantly better rates than the big banks because they have lower overhead. And your payments still come out of the same bank account — nothing changes on your end except the interest rate you pay.
Connect With an Expert
Your mortgage renewal is not just a paperwork exercise. It is a financial decision that will affect your monthly cash flow, your long-term wealth building, and your family’s financial security for years to come. Do not leave $24,000 on the table because your bank sent a convenient letter.
At Kraft Mortgages Canada Inc., we have 18+ years of experience helping homeowners across Surrey, the Fraser Valley, and Greater Vancouver navigate renewals, refinances, and new purchases. We are licensed in BC, Alberta, and Ontario, and we specialize in construction financing, MLI Select for investors, and self-employed mortgage solutions.
Take the first step:
- See what you can afford today: Get Pre-Approved
- Start a conversation: Speak with Varun Chaudhry directly
- Explore investor financing: MLI Select Program
The Bank of Canada held rates. That does not mean you should hold off on action. The window to secure a competitive renewal rate is open right now — do not wait until your bank’s letter arrives to start shopping.
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