The ongoing conflict in Iran has led to rising oil and energy prices globally, prompting concerns for Canadians looking to renew their mortgages amid a wave of renewals expected this year. As the situation escalates, the Canada Mortgage and Housing Corporation reports that at least 1.5 million households had already renewed their mortgages by the end of 2025, with an additional million expected to follow in 2026. This trend in renewals coincides with rising mortgage rates in the U.S., where the 30-year fixed mortgage rate recently surpassed six percent.

Experts highlight that rising oil prices create a ripple effect on inflation perceptions, directly impacting bond yields, which are a critical factor in determining mortgage rates. As stated by Clay Jarvis from NerdWallet Canada, the spike in oil prices due to hostilities around Iran has led to increased bond yields, which lenders utilize to set the rates of fixed mortgages. This financial environment complicates the mortgage renewal process for Canadians as they face uncertainties about future costs.

Overall, as the conflict continues, Canadians are advised to stay informed and consider their options carefully when renewing mortgages. With fixed-rate mortgages already experiencing slight increases since the beginning of the war, borrowers may need to navigate a challenging financial landscape influenced by international events. The implications of the Iran war could mean higher mortgage costs and pressures on household finances, emphasizing the need for strategic financial planning in the coming months.