Every Big Bank Charges 4.29%. Brokers Charge 4.04%. Here Is What That Means for You.

Twenty-five basis points. That is a quarter of a percent. It does not sound like much until you do the math on a half-million-dollar mortgage over five years. Then it sounds like thousands of dollars your clients get to keep in their pockets instead of sending to a bank. Right now, every single Big Five bank in Canada is charging 4.29% on the five-year fixed. The best broker rate is 4.04%. And the timing could not be better, because the biggest renewal wave in Canadian mortgage history is happening right now.

The Rate Gap: Simple Math, Big Impact

Let us break it down in plain language. On a five-year fixed mortgage, every Big Five bank (RBC, TD, Scotiabank, BMO, CIBC) has landed at the same posted rate: 4.29%. National Bank is even higher at 4.34%. The best insured five-year fixed through a broker? 4.04%. That 25-basis-point gap is not just a talking point. On a typical $500,000 mortgage, that difference adds up to real savings over the life of the term.

The variable rate story is even more compelling. Banks offer 3.65%, while brokers can get clients 3.35%, a 30-basis-point advantage. As Scott Larter, CEO of BrokerBot, says: "Here is a number every broker should put on their whiteboard this week: 25. That is how many basis points cheaper you are than the Big Five banks right now on a five-year fixed. Your clients do not know this. Tell them."

The Renewal Wave: More Than Half of All Mortgage Activity

Here is where the opportunity becomes enormous. According to Ratehub, renewal inquiries now make up 52.5% of all mortgage inquiries this year, up from 40.4% over the same period in 2025. Over a million Canadian mortgages are set to renew in 2026 alone, and approximately 60% of all outstanding mortgages in Canada will renew in 2025 or 2026.

"Renewal inquiries are now 52% of all mortgage activity. That is not a trend. That is the market telling you where the opportunity is. The brokers who own the renewal conversation this spring will own the client for the next five years," says Larter.

Payment Shock Is Real, but So Is the Solution

Ratehub reports that "borrowers renewing their fixed mortgage rate in April 2026 can expect to pay an average of $622 more per month, a 24% increase.” That is $7,464 more per year. It is a big number, and it is exactly why clients need professional guidance. The silver lining? Ratehub.ca also found that "you could save $13,857 on average by switching with Ratehub.ca vs renewing with your bank." Even a 0.25% lower rate saves $91 per month, or $1,092 per year.

What This Means for Each Professional

Mortgage brokers: Your value proposition has never been simpler. You are cheaper than every Big Bank, full stop. The renewal wave is here, and more than half of all mortgage activity is now renewals. Clients who switched lenders at renewal may even be exempt from the stress test since November 2024. The math is on your side.

Real estate agents: The spring market is slow, and that is actually an opportunity. Buyers are not gone. They are waiting. The agents who keep their clients informed about rates, equity, and market data will be the first to be called when confidence returns. Being the agent who shares rate intelligence builds trust that lasts beyond any single transaction.

Insurance brokers: Insurance professionals should pay attention to those $622 monthly payment increases at renewal. That changes household cash flow. Changed cash flow changes coverage decisions. If you are not having that conversation proactively with your clients, someone else will.

What You Should Do This Week

1. Know your number. The broker advantage is 25 basis points on fixed, 30 on variable. Put it on your whiteboard, in your email signature, and in your conversations.

2. Pull your renewal list. With 52.5% of all mortgage activity being renewals, your next client is probably already in your database.

3. Lock in rate holds. Rate holds are available up to 120 days before renewal. As Ratehub advises, "those shopping for a mortgage rate should take out a pre-approval and rate hold as soon as possible to secure access to today's pricing.”

4. Share the savings story. $13,857 in average savings is a number that gets attention. Use it.

5. Talk to your referral partners. Real estate agents and insurance brokers are feeling the same market shifts. A quick update on the rate landscape builds relationships and generates referrals.

FAQs

Q: How much cheaper are brokers than the Big Banks right now?

On a five-year fixed, the best broker rate is 4.04% compared to 4.29% at every Big Five bank, a 25 basis point (quarter of a percent) advantage. On variable, brokers offer 3.35% versus 3.65% at the banks, a 30 basis point edge. BrokerBot's rate comparison tools make it easy to show clients these differences side by side.

Q: How much can my clients save by switching at renewal?

The average savings from switching versus auto-renewing with your bank is $13,857. Switching bonuses of up to $4,000 may also be available. BrokerBot helps you present these savings in clear, client-ready formats.

Q: How big is the renewal wave?

Over a million Canadian mortgages are set to renew in 2026, and renewal inquiries now make up 52.5% of all mortgage activity. BrokerBot's renewal pipeline tools help you track and prioritize clients approaching their renewal window.

Q: What is happening with payment increases at renewal?

Fixed-rate borrowers renewing in April 2026 face an average increase of $622 per month, a 24% jump. That is $7,464 more per year. BrokerBot's payment calculators help you walk clients through the numbers and show them the impact of choosing a better rate.

Q: Should clients consider variable rates right now?

At 3.35%, the best five-year variable rate through a broker is compelling, especially with a 30-basis-point advantage over the banks. However, WOWA.ca forecasts suggest potential rate hikes later in 2026, so clients need to understand the tradeoff. BrokerBot's scenario comparison tools let you show clients both fixed and variable paths side by side.

Q: How can real estate agents use rate data to help their clients?

Agents who share rate intelligence with waiting buyers build trust and position themselves as the first call when confidence returns. With the spring market slower than usual, this is a chance to strengthen relationships. BrokerBot's market update tools give agents ready-to-share summaries.