Year-end reflection is prompting increased mortgage refinancing activity across the region, says broker
Interest rates have slipped over the past year, with both fixed rates and their variable counterparts ticking downwards – and with 2026 in sight, that means plenty of homeowners are eyeing up a refinance to bring borrowing costs lower.
That’s especially the case in some of the country’s traditionally priciest markets, including Toronto and Vancouver, where homeowners often need all the help they can get to make their mortgage work.
In the Greater Toronto Area (GTA), licensed mortgage broker and LowestRates.ca expert Leah Zlatkin said refinancing has been a big recent trend in the mortgage market as homeowners look to the year ahead.
Plenty of those owners, Zlatkin said, are “reflective” as 2026 looms. “They are looking at their credit‑card balances before the holidays, thinking about what they want to accomplish next year, and figuring out how their home equity can support those plans,” she said.
Zlatkin said GTA homeowners are refinancing for several key reasons: to access funds for renovations, milestone events, and major purchases; to consolidate high‑interest consumer debt; and to switch mortgage products to improve flexibility or cash flow.
Unsurprisingly, renewals are also set to be a big focus for homeowners and brokers in 2026, with more than 51% of mortgages coming up for renewal as of September. According to a WOWA.ca report, a growing wave of renewals, combined with modest easing in borrowing rates, is encouraging homeowners to explore refinancing options.
But while refinancing is tempting for many homeowners, Zlatkin cautioned that accessing home equity should be approached carefully.
“One of the biggest risks is treating your home like an ATM. If your property was valued at $2 million and is now closer to $1.8 million, you do not want to keep eating into that equity,” she said. “Before refinancing, ask yourself whether you actually need the money and whether the new monthly payments make sense. Sometimes there are better ways to access funds without touching the mortgage.”
