Are you concerned about the interest rate you will face when it's time to renew your mortgage?

Poll: Mortgage renewals

Photo: Rob Kruyt, BIV

Mortgage default rates are rising in B.C. according to the Canada Mortgage and Housing Corp., but they still remain a fraction of one per cent.

Many British Columbians obtained five-year mortgages in 2021 to take advantage of historically low rates during the COVID-19 pandemic, and they are now facing higher monthly payments upon renewal.

The current five-year fixed rate is 3.84 per cent compared to 1.39 per cent in January 2021, while the current five-year variable rate is 3.35 per cent compared to 0.99 per cent in January 2021, according to Jan. 27, 2026 data from Ratehub.ca for insured mortgages.

Another group took out shorter three-year mortgages in 2023, when interest rates were higher than today. These people could now see a decrease in their interest rate and monthly payment, said Rebecca Casey, president of the Canadian Mortgage Brokers Association - British Columbia.

The 2021 cohort bought before the peak of the market in terms of values, she said. They may have seen their property value rise to a degree, giving them more tools to alleviate the jump in payment.

The 2023 folks did not experience that same level of price appreciation, she said. While they may be able to snag a lower rate, they may not have the same options for debt consolidation or overall change in their cash flow.

Default rates, historically very low in Canada, are creeping up.

B.C.’s mortgage delinquency rate was 0.19 per cent in the third quarter of 2025, according to the Canada Mortgage and Housing Corp. (CMHC). This measures the share of loans that are 90 or more days past due, and has been trending up since the low of 0.10 seen in the second half of 2022.

In the Vancouver region specifically, the delinquency rate was similar at 0.18 in the third quarter of 2025, up from a low of 0.8 per cent seen in the second half of 2022 and early 2023.

“We are seeing higher levels of it than we have historically, but it’s still important to note that it’s still low,” Casey said.

“It’s not doom and gloom. … There are options and it doesn’t have to be a terrifying experience.”

Clay Jarvis, mortgage expert with NerdWallet Inc., said people who took out mortgages in 2021 have likely paid off $100,000 or more since then, making the math more favourable. They may also be earning higher wages than they did five years ago.

If a person’s interest rate doubles from two to four per cent, this doesn’t mean that their monthly payment will double, he noted.

“It’s going to increase, but you are renewing a smaller loan, so you don’t necessarily have to freak out quite as much,” he said.

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