Over the next year, Canada is expected to see one of the largest waves of mortgage renewals in decades. According to the Canada Mortgage and Housing Corporation, roughly 1.15 million mortgages are set to renew this year, representing about 60% of all outstanding mortgages.
Many of those mortgages were originally arranged when interest rates were much lower than they are today. Because of that, renewal is top of mind for many homeowners who are wondering what their next payment might look like.
The good news? Renewal is also one of the best opportunities to review your mortgage and make changes without penalties. And the earlier you start looking at your options, the easier the process tends to be.
Why starting early makes a difference
Most lenders send out renewal notices several months before your mortgage maturity date — sometimes as early as six months in advance.
While that might seem early, it actually creates an important window of opportunity.
Starting the conversation early gives you time to:
- Review your options carefully
- Compare rates and mortgage features
- Understand what your new payment may look like
- Make a plan that fits comfortably within your budget
Even if you ultimately stay with your current lender, having the time to review everything properly removes uncertainty and helps you make a confident decision rather than feeling rushed at the last minute.
Understanding “payment shock”
One of the biggest concerns many homeowners are facing right now is something often referred to as payment shock — the jump in monthly payments that can happen when a mortgage renews at higher interest rates.
Before making any decisions, it’s helpful to understand the numbers clearly. What would your payment look like at today’s rates? How does that fit into your current budget?
If the increase feels tight, there may be options available to help ease the transition.
For example, extending your amortization could lower your monthly payment by spreading the mortgage over a longer period of time. While that can mean paying more interest overall, it can provide valuable short-term breathing room.
In some cases, refinancing at renewal may also be worth considering. If you have enough equity in your home, refinancing can sometimes help:
- consolidate higher-interest debt
- improve monthly cash flow
- restructure your mortgage so it better fits your current situation
These solutions aren’t right for everyone, but renewal is the ideal time to review them.
Renewal isn’t just about the rate
It’s natural to focus on interest rates at renewal, but the structure and flexibility of your mortgage matter just as much.
Features like the below can all play an important role depending on your future plans.
- prepayment privileges
- penalty structures
- portability (the ability to move your mortgage if you buy another home)
Sometimes a mortgage with slightly more flexibility can be more valuable than simply choosing the lowest rate available.
A good time to reset your strategy
Renewal is more than just signing a new term — it’s a chance to step back and make sure your mortgage still aligns with your goals.
Maybe your financial situation has changed. Maybe you're thinking about moving, investing, or paying down your mortgage more aggressively.
Starting the conversation early gives you the time to review everything and move forward with a plan that makes sense.
Don’t leave renewal until the last minute
One of the biggest mistakes homeowners make is allowing their mortgage to automatically renew with their lender without reviewing their options first. That can sometimes mean missing opportunities to improve your rate, structure, or overall financial plan.
If your mortgage is coming up for renewal this year, it’s worth having a quick review of your numbers and options.
A simple conversation can bring a lot of clarity and help you move forward with confidence.