Mortgage renewals are a timely subject right now. With roughly 60% of all outstanding mortgages in Canada expected to renew in 2025 or 20261, many homeowners will have questions about their upcoming renewal. We spoke with some of the MCAP Renewal Account Managers to discuss common challenges, questions, and tips they had regarding mortgage renewals in the current market.
Mortgage Renewal Facts & Figures
60% of homeowners renewing in 2025/26 are expected to see a payment increase |
Homeowners renewing a 5-year fixed mortgage in 2025–2026 could see payments rise about 15%–20% from December 2024 levels |
Homeowners with variable rates and variable payments could see an average payment decline of around 5%–7% |
Meet the Renewal Account Managers
Jill Hickey For over 17 years, Jill has helped MCAP homeowners through the mortgage renewal process with patience and expertise. |
David Race With a diverse background, David is a skilled solution-finder. He brings a level-headed and clear approach to help his clients with their mortgage renewals. |
Current events, like tariffs, are making me nervous as I approach my renewal.
Unfortunately, we can’t predict what will happen next, but my best advice to homeowners is to stay informed about economic trends and forecasts affecting interest rates. Consult with financial or mortgage advisors who can help you interpret market conditions and timing. Homeowners need to understand current economic trends, why interest rates change, what trends to watch, and how to respond as a homeowner. Homeowners need to stay informed, stay flexible, and focus on what’s in their control — payment habits, debt levels, and mortgage structure. - Jill
Understanding what mortgage rates are tied to can help you gain insight and understand trends.
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Fixed rates are tied to the bond market. Typically, fixed rates decrease when the bond rate decreases and vice versa. Fixed rates are connected to a myriad of factors such as inflation, unemployment, global economic trends, lender risk premiums/profit margins, competition between lenders etc. |
Adjustable rates, sometimes referred to as variable rates, are connected to the Bank of Canada (BoC) as they set the benchmark rate. When the BoC sets rates, their decisions are based on inflation trends, employment numbers, GDP growth, consumer spending etc. |
How can I keep my mortgage payments affordable with higher interest rates?
Being upfront and honest with homeowners is always important to me. Interest rates have changed dramatically since the past term, and keeping their upcoming payment amount the same as their existing term may not always be feasible. What we can do is investigate opportunities to extend the remaining amortization of the loan to bring down the payment amount. If no opportunities exist, I explain how Lump Sum Payments can be used to bring down the mortgage Principal Balance or I may suggest refinancing opportunities to extend amortization if possible – advising of Equity-Take-Out minimum requirements. In my experience, customers who have a defined plan or mortgage goals are typically already aware of their amortization options. Homeowners with less defined mortgage goals who have an opportunity to extend their remaining amortization are usually interested in doing so to help achieve a lower payment for their next mortgage term. – David
How could a consumer proposal or bankruptcy impact my interest rate options upon renewal?
Even though the details of a bankruptcy or consumer proposal will come up when we do a soft credit check, it’s always good practice to update your lender on any significant income changes or credit improvements because they may impact your renewal or refinance options. Consider shortening or extending amortization if your financial situation has shifted. - Jill
Tips for Homeowners Going Through a Consumer Proposal or Bankruptcy:
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Monitor your credit score before renewal and attempt to fix any issues. |
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Be aware of predatory lenders with extreme fees and renewal penalties. |
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Avoid renewing without checking if you’re being offered a higher interest rate because of your past credit history. |
I am thinking about accessing my home equity at my renewal. What are my options?
If a homeowner wants to access equity in their home, it will be via refinance, which will be subject to qualification and approval. Rates and terms can be discussed with a Refinancing Specialist once a Refinancing application has been completed and submitted. It’s important to remember a refinance is different than a renewal. That’s why we have a fully qualified and supportive team of experts who can answer their questions and provide insight into the qualification and approval process. – David
How can I best prepare for my mortgage renewal?
Here are Jill’s recommendations to set you up for a smooth renewal and make sure your next mortgage helps you meet your goals.
- Research current market rates well before renewal. Contact your lender early to discuss available rates. Negotiate with your current lender.
- Evaluate your financial goals. Do you want lower payments or to pay off your mortgage faster? Use online mortgage calculators to see how different terms affect payments and total interest and run simulations to see the impact of different rates, amortizations, and terms, and how they fit your budget. Talk to a mortgage advisor to help you select the term that fits your lifestyle. Can the amortization be extended to increase cash flow?
- Review your current mortgage agreement carefully to understand any penalties or restrictions. Negotiate flexible prepayment options during renewal. Ask lenders about options to add lump-sum payments or to increase payments without fees.
- Start the renewal process early. Avoid last-minute stress by starting conversations at least 3–6 months in advance. Set calendar reminders. Staying proactive gives you time to negotiate and avoid penalties or missed deadlines.
- Consider a fixed vs. adjustable rate. Adjustable-rate mortgages can save you money if rates decline (especially if the spread between fixed and variable rates is large).
- Consider eliminating high-interest debt (i.e. credit cards, car loans etc.) This could help free up cash flow for your new mortgage payment. Explore secondary income resources to supplement your income (i.e. freelance/part-time work, renting out a room etc.)
What term should I select: 3 years or 5 years?
When it comes to your mortgage renewal, only you can make these decisions, but I can add context to help you determine what would work best for you. When we’re comparing 3- or 5-year terms, I frame it as flexibility vs peace of mind. Do you want to be up for renewal again in 3 years when there may or may not be different economic factors in place? Or are you happy with the 5-year option that has been presented and want to renew for 5 years, knowing you do not have to worry about changing economic or political factors that are currently in place, and may still be in place 3 years from now? We cannot predict what will happen in the future, but breaking down term options in this manner helps homeowners better visualize what factors may be in place down the road. - David
What are the advantages of renewing my mortgage with MCAP?
The advantage of renewing your MCAP mortgage is that it includes a hassle-free, cost-free, quick renewal option. No cost or need to requalify to renew. We strive to make the renewal process as easy as possible for homeowners. I am here to help you with your mortgage plans, whatever your mortgage plans may be. - David
Discuss Your Mortgage Renewal with Our Team
If you’re an MCAP homeowner and ready to start exploring your renewal options, we’d be happy to help! Contact our team and let’s find the mortgage to help you meet your goals.
1 How will mortgage payments change at renewal? An updated analysis – Bank of Canada
