Hey there, Fredericton homeowners! If your calendar is shouting at you that your mortgage renewal is coming up in 2026, you aren’t alone. I’ve been chatting with folks from the North Side to Sunshine Gardens, and the vibe is the same: a mix of "where did the last five years go?" and "wait, what are the rates doing now?"
The world of 2026 looks a lot different than 2021. Back then, rates were at historic lows, and we were all just trying to figure out how to bake sourdough. Now, we’re dealing with a more "normal" interest rate environment, but "normal" can still feel pretty heavy when you’re staring down a renewal notice from your bank.
I’m Luis Ow, and at M.O.S. MortgageOne Solutions Ltd., my job is to take that weight off your shoulders. Whether you’re here in Fredericton, settling into a new spot in Moncton, or enjoying the coastal breeze in Saint John, I’m here to help you navigate the big question: Fixed or Variable?
Let’s break it down so you can stop stressing and start planning your next summer trip to Kouchibouguac instead.
The 2026 Mortgage Landscape: Where Do We Stand?
Before we dive into the pros and cons, let’s look at the "now." As of May 2026, the Bank of Canada has kept its policy rate around 2.25%. This means the prime rate is sitting at about 4.45%.
If you’re shopping for a renewal today, you’re likely seeing:
- 5-Year Variable Rates: Around 3.30% to 3.45%.
- 5-Year Fixed Rates: Around 3.74% to 3.84%.
- 3-Year Fixed Rates: A popular "middle ground" at 3.69% to 3.89%.
Right now, variable rates are winning on price by about 0.30% to 0.50%. On a $600,000 mortgage, that’s about $90 a month back in your pocket. Over five years, that could be $10,000 in interest savings. But: and it’s a big "but": that only works if rates stay flat or go down.
Fixed Rates: The "Sleep Better at Night" Option
Fixed rates are the classic choice for a reason. You know exactly what your payment is today, tomorrow, and four years from now. For many families in growing areas like Dieppe, Riverview, or Quispamsis, that predictability is worth its weight in gold.
The Pros:
- Total Certainty: Inflation could spike, the global economy could do a backflip, and your mortgage payment won't budge. If you have a strict budget or a single-income household, this is your safety net.
- Budgeting Bliss: You can plan your finances years in advance. No surprises when you open your bank app.
The Cons:
- The "Premium" Cost: You pay a little extra for that certainty. Right now, you're looking at a higher starting rate than a variable mortgage.
- The Penalty Trap: This is the big one. If you need to break a 5-year fixed mortgage early: maybe because you’re moving to Rothesay for work or downsizing in Miramichi: the penalties can be massive. Banks use something called the Interest Rate Differential (IRD), which can easily cost you $15,000 or more.
Variable Rates: The Flex-Player
Variable rates are for the folks who don't mind a little movement in exchange for a lower entry price. They are tied to the "prime rate." When the Bank of Canada moves, your rate moves.
The Pros:
- Lower Starting Cost: You start with the lowest rate available. In the 2026 market, you’re saving money from day one compared to a fixed term.
- Lighter Penalties: If you need to break your mortgage, variable rates usually only carry a penalty of three months’ interest. That is a huge advantage if you think your life might change in the next few years.
- Switching Power: Most variable mortgages allow you to "lock in" to a fixed rate later if you get nervous.
The Cons:
- The "What If" Factor: If inflation hits a snag and the Bank of Canada raises rates just twice (0.25% each), your "cheap" variable rate suddenly costs as much as the fixed rate you turned down.
- Payment Shock: For some, your monthly payment stays the same, but less of it goes toward your principal (this is called your amortization extending). For others, the actual payment increases. Neither is fun if you aren't prepared for it.
The Problem-Solution: How I Help You Decide
I see it all the time: a client in Oromocto or Woodstock gets a renewal letter from their current bank that says, "Here is your new rate. Sign here."
The Problem: The bank's offer is usually not the best rate available, and it certainly isn't tailored to your life goals. Most people sign because they’re busy and stressed. They fear that if they don't sign, they'll lose their home or face even higher rates.
The Solution: That’s where I come in. When you work with me, we don’t just look at a number; we look at your life.
- I shop around: I have access to dozens of lenders that your big bank doesn't show you.
- I analyze your plans: Are you planning a kitchen reno in your Saint John home? Maybe we should look at refinancing to access your home equity.
- I manage the "Shock": If your payment is jumping significantly from your 2021 rate, we can look at switching your mortgage to a lender with a longer amortization to keep your monthly cash flow healthy.
Is Fredericton’s Market Different?
While mortgage rates are national, our local market in New Brunswick is unique. In cities like Fredericton, Moncton, and Saint John, we haven't seen the wild "bubble" crashes that some other provinces have feared. Our inventory remains tight, meaning your home equity is likely very stable.
Whether you're in a historic home in Sackville or a new build in Hanwell, your home is an asset that gives you options. If you’re feeling squeezed by the cost of living, we can use your renewal as a chance for debt consolidation, rolling high-interest credit cards into your mortgage at a much lower rate. This can save you hundreds, sometimes thousands, of dollars in monthly outgoings.
The "Sweet Spot" of 2026: The 3-Year Fixed
If you’re torn between the two, many of my clients in places like Edmundston, Bathurst, and Shediac are choosing the 3-year fixed.
It’s the "Goldilocks" of mortgages right now:
- Lower rate than the 5-year fixed.
- Certainty for three years while the economy settles.
- Renewal sooner, so if rates do drop in 2028 or 2029, you aren't stuck in a high-rate contract for two extra years.
Risks to Keep in Mind
I’m all about transparency. No matter which path you choose, there are risks:
- Fixed Risk: You might "overpay" if rates drop significantly next year. You’re also "stuck" if you need to sell unexpectedly.
- Variable Risk: You are at the mercy of the Bank of Canada. If they need to cool the economy further, your rate will climb.
Let’s Make a Plan Together
You don’t have to guess. Whether you’re in St. Stephen, Sussex, Caraquet, or Grand Bay-Westfield, I am just a phone call away. I provide personalized mortgage solutions for every situation: including self-employed pros and newcomers to our beautiful province.
Don't let your renewal date sneak up on you. Let’s look at the numbers, talk about your goals, and find the solution that keeps more of your hard-earned money in your pocket.
Ready to lock in your future?
I provide mortgage services across all of New Brunswick, including Moncton, Saint John, Fredericton, Dieppe, Riverview, Quispamsis, Miramichi, Edmundston, Bathurst, Rothesay, and beyond.
Luis Ow
Mortgage Associate
M.O.S. MortgageOne Solutions Ltd.
Phone: 506-650-7551
Email: luis@mortgageloansnb.com
Website: mortgageloansnb.com
Rates quoted are current as of May 19, 2026, and are subject to change without notice. All mortgage products are subject to lender credit and property qualification.
Luis's Personal License #: 250042903
Brokerage License #: 210053949