As many Ontario homeowners approach their mortgage renewal dates in 2025 and 2026, a wave of concern is sweeping the housing market. Nearly 60% of outstanding mortgages in Canada will come up for renewal during this period, and a significant number of homeowners are expected to face higher monthly payments. This looming mortgage renewal wave means it’s more important than ever for homeowners to plan and make informed decisions to protect their finances.

Why Are Mortgage Payments Rising?

Several factors are driving the expected increase in mortgage payments for renewing homeowners. Interest rates have been on an upward trend, with the Bank of Canada’s key rate currently around 2.5% and expected to remain stable or fluctuate slightly in the near term. Fixed-rate mortgages, particularly five-year terms, are closely tied to market bond yields, which have increased, leading to higher renewal rates.

For homeowners locked into lower rates from previous years, this means monthly payments could rise significantly upon renewal. On average, those renewing fixed-rate mortgages in 2025 may see payment increases of 15% to 20% compared to the end of 2024.

What Rising Mortgage Payments Mean for Ontario Homeowners

Ontario homeowners should approach mortgage renewal proactively rather than automatically accepting offers from existing lenders. While loyalty is common, nearly 70% of Canadian borrowers stay with their lender at renewal, often missing out on more competitive rates available in the market. Exploring options such as switching lenders, renegotiating terms, or refinancing can save hundreds each month and thousands over the term of the mortgage. Strategies like shortening amortization periods or selecting shorter-term mortgages may also help manage payment shock.

How to Prepare for Your Mortgage Renewal

Preparation is crucial to navigate the renewal process smoothly and cost-effectively. Homeowners should start reviewing mortgage terms and rates approximately four months before renewal, gather all relevant financial documents, and compare offers from multiple lenders and mortgage brokers. Evaluating the pros and cons of fixed versus variable rates based on the current market outlook and personal financial situation is also essential. Planning a realistic budget that accounts for potential payment increases ensures homeowners remain financially secure during the renewal period.

How Cannect Can Help

Cannect provides Ontario homebuyers and homeowners with transparent insights, up-to-date mortgage rates, and personalized renewal strategies. Our team is dedicated to helping residents navigate the complexities of mortgage renewal, connecting them with trusted mortgage experts who tailor solutions to individual financial goals. Facing higher payments doesn’t have to be overwhelming. With the right guidance and proactive planning, homeowners can confidently manage mortgage renewals, secure favorable terms, and safeguard their homeownership.

Take Control of Your Mortgage Renewal Today

Book a consultation with Cannect to explore your options, compare competitive rates, and plan your mortgage renewal with confidence. Don’t let rising payments catch you off guard; secure your financial future today.

📞 Call 416-766-9000 or visit Cannect.ca to get started.

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