Mortgage Renewals in Canada: What You Need to Know in 2025
If your mortgage is up for renewal in 2025, you’re not alone. According to recent data, over 1.2 million Canadian mortgages are set to renew this year—a staggering number that represents a significant portion of the market. With interest rates higher than they’ve been in recent years, it’s never been more important to approach your renewal with a strategy.
What Is a Mortgage Renewal?
A mortgage renewal happens when your current mortgage term ends and you need to either renegotiate your mortgage with your existing lender or switch to a new one. It’s a critical moment that gives you the opportunity to re-evaluate your financial goals and shop for better terms.
Common Myth: Your Current Lender Will Automatically Offer You the Best Rate
This is one of the biggest misconceptions among Canadian homeowners. Many people assume their current lender will reward loyalty with the best rate possible. In reality, lenders often offer their posted rates (which are usually higher than what’s available on the market) hoping you’ll simply sign the renewal without shopping around. Roughly 70% of people do this.
Tip: Always consult with a licensed mortgage broker to help you find the best rates and terms for YOUR needs. You could save thousands over your next term by getting even a slightly better rate.
Key Factors to Consider Before Renewing
Renewing a mortgage isn’t just about interest rates. Take Ame to evaluate how your life has changed—and how it might change in the near future.
Consider these scenarios:
• Divorce or separation: If there’s a possibility of relationship changes, flexibility in your mortgage can make a big difference.
• Moving up or downsizing: Planning to change your living situation? A variable rate or open mortgage may be a better fit.
• Job changes or retirement: A change in income might mean you need a different payment structure or mortgage option.
• Starting a business or taking on new debt: Anticipated changes to your financial situation should be factored into the type of mortgage you choose.
Tips for a Smarter Mortgage Renewal
1. Start Early: Lenders typically send out renewal notices 30 days before the end of your term, but you can start shopping 120 days in advance. Many lenders will hold a rate for that long, giving you Ame to make a sound decision.
2. Use a Licensed Mortgage Broker: Brokers have access to rates from multiple lenders and can help match you with one that fits your financial goals—it’s not just about the best rate.
3. Know Your Numbers: Understand your current mortgage balance, interest rate, remaining amortization and prepayment privileges.
4. Ask About Flexibility: Look for features like lump-sum payment options, prepayment privileges, and portability if you’re planning a move.
5. Watch the Penalties/Fees: If you’re considering switching lenders before your renewal date, check if penalties or fees apply—and whether the long-term savings outweigh them. A mortgage broker can help you with this.
The Bottom Line
With over a million Canadians facing mortgage renewals in 2025, competition among lenders will be fierce—and that’s good news for homeowners. But don’t let convenience or loyalty cost you money. Treat your mortgage renewal like a brand-new mortgage application: do your homework, ask questions, and plan for your future.
Lucy is a Licensed Mortgage Broker as well as an Accredited Mortgage Professional. She has over 22 years of experience helping clients obtain mortgages and 30 years of experience in the finance industry.
To schedule a consultation click here. Our phone number is 780-995-9660 and our office is located at 223 14 Street NW, Calgary AB T2N 1Z6.
Lucy Arruda, AMP, RCP
Lucy is a Licensed Mortgage Broker as well as an Accredited Mortgage Professional. She has over 22 years of experience helping clients obtain mortgages and 30 years of experience in the finance industry.
