realestatelife WITH BRIE ROBERTSON & KATIE WHYTE
With almost 60 per cent of Canadian mortgages coming up for renewal in 2025 and 2026, many homeowners are approaching a critical time in their homeownership journey. Whether interest rates rise or fall, using a mortgage broker at renewal time can help you avoid unnecessary costs and secure the best possible deal. Most lenders send a renewal offer close to the end of your term, but these are often not their most competitive rates. A mortgage broker works with multiple lenders and can shop the market on your behalf, comparing rates and negotiating better terms that suit your needs. This is especially important now.
The Bank of Canada warns that many homeowners could face payment increases of 10-20 per cent when renewing, especially those who locked in low fixed rates during the COVID-19 pandemic. On the other hand, around 25 per cent of borrowers, typically those with variable-rate or shorter-term mortgages, may see payment reductions of 5-7 per cent if interest rates ease.
A broker can help you determine whether to stay with your current structure or switch from fixed to variable (or vice versa), based on your financial goals and risk tolerance.
Another major advantage? Mortgage brokers can secure a rate hold up to 120 days before your renewal date, protecting you from potential rate increases while giving you time to consider your options. This early lock-in feature can lead to substantial savings if rates rise during that window.
Mortgage brokers also provide personalized advice, help you explore refinancing or debt consolidation, and simplify the paperwork. Best of all, they’re typically paid by the lender — not by you — so their services come at no cost.
With so many Canadians facing renewal pressures, don’t leave money on the table. A mortgage broker offers expert guidance, rate protection and peace of mind when it matters most!
Brie Robertson and Katie Whyte are mortgage brokers and owners of Illuminate Mortgage Group.
