Mortgage Renewal Wave Is Coming — Here’s How to Brace for It
Canada is about to experience one of its largest mortgage renewal periods in recent memory—over 1.8 million mortgages will come up for renewal in the next year alone. That means a lot of Canadians are bracing for a possible 20% jump in monthly payments, especially those who locked into low fixed rates during the pandemic’s ultra‑low era. Mortgage Professional
Why It Matters
Borrowers with five-year fixed rates from 2020–21 are especially vulnerable. If your mortgage payments were based on sub‑2% rates back then, now’s the time to prepare. Mortgage Professional
Thankfully, most households have been stress-tested at rates above 5%, and real incomes are still climbing—so the impact, while significant, is expected to remain manageable. Mortgage Professional
What Lenders Are Offering
Lenders are reacting with more flexibility, offering:
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Extended amortization schedules
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Early-renewal options to lock in rates now
These tools are designed to soften the blow of rising payments. Mortgage Professional
Your 4–6 Month Action Plan
According to industry experts, the time to act is not when the renewal letter arrives, but months before. Here’s how to get proactive:
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Run the worst‑case scenario: Model your budget with a 15–20% payment increase.
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Gather your docs early: Employment, income, property statements—have everything ready.
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Shop your renewal: Compare lenders and get tools like rate holds in place.
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Plan for equity & income buffers: Rising home values and household earnings may offer a cushion. Mortgage Professional
Higher unemployment and economic uncertainty may add pressure, but for many, smart planning now will make renewal more manageable—not panic-inducing. Mortgage Professional