Why your payment is going up
During the pandemic, interest rates in Canada dropped to unprecedented lows. If you locked in a mortgage back then — whether variable or fixed — you got an exceptionally good deal. Now those terms are expiring, and the renewal environment looks very different. Rates are considerably higher than when you first signed.
According to the Bank of Canada's recent reports, about 60% of mortgages will renew in 2025 and 2026. For some of you, that means your monthly payment could jump by several hundred dollars or more.
What this means for your budget
A few hundred extra dollars a month isn't nothing. It changes what you can comfortably afford elsewhere. But higher payments don't mean you're stuck. You've got options — and the earlier you start looking at them, the better.
1. Review where you stand financially
Before your renewal date shows up, take a close look at your numbers. What's coming in each month, what's going out, and where could you trim if you had to? This gives you a realistic picture of how much room you have to absorb a higher payment — or whether you need to adjust something.
2. Consider refinancing or stretching out your timeline
One way to bring your monthly payment down is by refinancing or extending how long you'll take to pay off the mortgage. Yes, stretching it out means you'll pay interest for more years. But it can give you immediate breathing room in your budget. Just weigh the short-term relief against the long-term cost of that extra interest.
3. Lock in your rate early
If your renewal is coming up and you're worried rates might climb even higher, talk to your lender or a mortgage broker about locking in early. Securing your rate now can protect you from another jump before your term officially ends.
4. Get someone in your corner
Renewals get complicated fast. A mortgage professional can walk you through what's actually on the table for your situation — refinancing, tweaking your terms, rolling other debts in, whatever makes your payment workable. We do this every day, and we're here to make sure you're not guessing.
How much could your payment actually go up?
It depends on your current rate, your new rate, and how much you still owe. But as a rough guide: if you locked in during the pandemic at around 2% to 3% and you're renewing now at 4% to 6%, you could be looking at an increase of hundreds of dollars a month.
Should you switch from variable to fixed?
That comes down to how much uncertainty you can stomach. Fixed rates give you certainty — helpful when the economy's all over the place. Variable rates have historically saved people money over the long haul, but your payment can swing month to month. Talk through your specific situation with someone who knows your full picture before you decide.
Is refinancing a good move right now?
Refinancing can make sense if it lowers your payment or lets you roll higher-interest debts into one spot. But you need to look at your whole situation. Yes, it might ease the pressure now — but extending your mortgage usually means paying more interest overall. A detailed conversation with a mortgage specialist will tell you whether it's worth it for you.
Let's figure this out together
We get it — watching rates climb when your renewal's around the corner is stressful. Our job is to help you see your options clearly and walk you through the process without the panic. We offer personalized consultations to talk through your goals and build a strategy that actually fits your life.
Don't let rising rates back you into a corner. Reach out today to talk about your upcoming renewal, and let's find the path that works for you.
Matt Broom-Hall Mortgage Broker & Coach [matt@hellomortgage.ca](mailto:matt@hellomortgage.ca)
