As over one million Canadian homeowners prepare to renew their mortgages by 2025, it's crucial to understand your options—especially in today’s high-interest-rate environment. If you're renewing your mortgage in Canada, the right strategy could save you thousands and protect your financial future.
As East Toronto real estate specialists, we help clients navigate mortgage renewals with confidence, from reviewing rates to refinancing or switching lenders. Here's what you need to know.
How the Mortgage Renewal Process Works
When your mortgage term ends, you’re not obligated to stay with your current lender. This is your chance to reassess your goals and possibly secure a better deal.
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Interest Rates Are Higher: If you locked in a low rate in 2020–2021, expect an increase in monthly payments.
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Term Flexibility Matters: Planning to sell soon? A short term may be best. Prefer stability? A longer term could be right for you.
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Refinancing Could Help: You might be able to access equity for home improvements or to consolidate debt.
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Switching Lenders Is Easier: Thanks to OSFI guideline updates, switching lenders no longer requires a stress test.
Common Scenarios in Mortgage Renewal
Scenario 1: Dealing with Higher Payments
If your rate jumps from 2.5% to 4.5%, you could be paying $300+ more each month. In some cases, extending your amortization may reduce that burden.
Scenario 2: Switching to a Better Lender
You might find more competitive terms with another lender. One of our clients recently saved $250/month after switching—without facing another stress test.
Scenario 3: Adjusting Payments for Flexibility
Extending your amortization can reduce monthly payments, though you'll pay more interest long-term. It can still be a smart short-term solution.
Before You Renew, Do These Three Things
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Assess Your Finances: Review income, expenses, and future plans.
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Understand Market Trends: Interest rates and lender options change often—get current info.
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Consult a Mortgage Expert: Personalized advice ensures you make the best move for your situation.
Why Work With Us?
As a trusted East Toronto real estate company, we offer:
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Access to Top Lenders: We help you secure competitive rates across major and alternative lenders.
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Tailored Advice: Whether you’re staying or switching, we’ll align your mortgage with your long-term goals.
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Local Market Expertise: We understand the East Toronto real estate market inside and out.
Let’s Make Your Mortgage Renewal Work for You
Renewing your mortgage in Canada doesn't need to be stressful. With expert advice and a clear plan, you can make a confident choice that aligns with your financial goals.
Ready to renew? Contact us today for a free consultation and let’s explore your best mortgage options together.
