Over the next two years, millions of Canadians will reach mortgage renewal. Unlike past renewal cycles, this one comes at a time when interest rates are still elevated compared to historic lows. For homeowners who locked in five-year terms during the ultra-cheap borrowing era of 2020 and 2021, the jump in payments may feel like a shock. But with preparation, the renewal process can also be a valuable opportunity to save money and secure a mortgage that better suits your needs today.

Why renewals matter more than ever

Renewals are always important, but the stakes are especially high in 2025 and 2026. Industry analysis shows that the majority of renewals will lead to higher monthly payments, in some cases by 15 to 20 per cent. On a typical Canadian mortgage, that can translate to hundreds of dollars more each month.

At the same time, the Bank of Canada is widely expected to begin cutting rates gradually. That means there may be opportunities for borrowers who shop carefully, but it also means the timing of your renewal and the product you choose will matter more than ever.

Start early and know your options

One of the most common mistakes homeowners make is waiting until their renewal notice arrives. By then, your options are limited and you may feel pressured to accept whatever is offered. The smarter move is to start the process four to six months before your term ends. This gives you time to compare offers from multiple lenders, negotiate with your current provider, and even lock in a rate ahead of time.

Shopping early can also give you peace of mind. If rates rise while you’re waiting, you’ve already protected yourself with a rate hold. If they fall, you can always adjust and secure a better deal.

Don’t just accept your lender’s first offer

Your lender wants to keep your business, but their first offer may not be their best. Many homeowners simply sign and send it back without question. Doing so can cost you thousands over the life of your mortgage. Instead, compare your options and use them as leverage. Whether you stay with your lender or switch to a new one, knowing what’s available will put you in a stronger negotiating position.

Consider the right mortgage structure

Renewal is a good time to think about more than just the interest rate. Your lifestyle, financial goals and risk tolerance should guide your decision.

• A fixed rate gives you stability and predictability, which may be valuable if your budget is tight.
• A variable rate could save money if rates decline in the coming years, though it comes with more risk.
• A shorter term might allow you to renew again sooner if rates are expected to fall further.
• Blended or split mortgages let you combine fixed and variable portions to balance security with flexibility.

Beyond rate and term, think about amortization and payment frequency. Extending your amortization may reduce monthly costs, but it increases interest over time. Switching from monthly to biweekly payments may shorten your overall mortgage and save money long term.

Negotiate everything you can

It’s not just about the rate. Ask about waiving appraisal fees, reducing legal costs or improving prepayment privileges. Lenders are competing for your business, and small concessions can add up. Working with a broker can help uncover offers you may not access directly.

The bottom line

Mortgage renewal is more than just a piece of paperwork, it’s a chance to take control of your financial future. With rates higher than many homeowners are used to, the impact of your renewal could be significant. By starting early, comparing options and thinking strategically about the right structure, you can turn a moment of potential stress into an opportunity to save money and align your mortgage with your goals. Our team at Homewise has seen many clients push back on shopping around at renewal, and that could lead to thousands of dollars in missed savings. Just remember, 15 minutes can save you thousands.