Over the next two years, millions of Canadian mortgages will come up for renewal.

And for many homeowners, the new rate environment will look very different from the one they locked in five years ago.

Let’s walk through what’s happening and how to prepare.

The Pandemic-Era Mortgage Effect

Between 2020 and 2021, mortgage rates in Canada reached historic lows.

It was common to see five-year fixed rates around 1.5% to 2%.

Fast forward to today, and many borrowers renewing their mortgage are seeing rates that are significantly higher than their previous contract.

That difference can lead to noticeable payment increases.

A Realistic Example

Imagine a homeowner who took out a $600,000 mortgage in 2021 at 1.79%.

Their payment might have been roughly:

$2,475/month

At renewal, if their rate is closer to 4.5%, their payment could rise to roughly:

$3,300/month

That’s a difference of about $825 per month.

Not every borrower will see increases that large, but many will notice a change.

The Good News: There Are Options

Renewal doesn’t have to mean simply signing the lender’s first offer.

A mortgage professional can help review:

• Different lender options

• Fixed vs variable rate strategies

• Payment restructuring

• Extending amortization if needed

Our team handles those comparisons for clients so they can see the full picture before making a decision.

Planning Early Is Key

One of the biggest mistakes homeowners make is waiting until the last few weeks before renewal.

In reality, reviewing your mortgage 4–6 months before renewal can open up far more opportunities.

The Takeaway

Mortgage renewals are becoming a major financial moment for Canadian homeowners.

But with the right planning and professional guidance, you can approach renewal confidently and choose a strategy that fits your goals.

If your mortgage renewal is coming up in the next year, our team would be happy to help you review your options early.