As over one million Canadian homeowners prepare to renew their mortgages in 2025, it’s crucial to understand your options—especially in today’s environment. If you’re renewing your mortgage in Canada, the right strategy could save you thousands and protect your financial future.
As East Toronto experts, we help clients navigate mortgage renewals with confidence, from connecting you with the best lenders to no-strings-attached advice. 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.
- Interest Rates Are Higher: If you locked in a low rate in 2020–2021, expect an increase in monthly payments.
- Term Flexibility Matters: Planning to sell soon? A short term may be best. Prefer stability? A longer term could be right for you.
- Refinancing Could Help: You might be able to access equity for home improvements or to consolidate debt.
- 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 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
- Assess Your Finances: Review income, expenses, and future plans.
- Understand Market Trends: Interest rates and lender options change often—get current info.
- Consult a Mortgage Expert: Personalized advice ensures you make the best move for your situation.
📍 Looking for more homeowner tips? Check out our post on tax incentives you should know before filing or organizing your finances for the year ahead.
Why Work With Us?
As a trusted East Toronto real estate brokerage, we offer:
- Access to Top Lenders: We can refer you to some of the best lenders in the business to help you secure competitive rates.
- Tailored Advice: Whether you’re staying or switching, we’ll align your mortgage with your long-term goals.
- Local Market Expertise: Real Estate is the language we speak. We understand the 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.
