Is Your Mortgage Renewing Soon? Here’s What Rising Payments Mean for You
By Leanne Mollica, Mortgage Broker — My Mortgage Strategy (Salmon Arm, BC)
Many homeowners in Salmon Arm and the Shuswap region will be renewing their mortgages in 2025 and 2026, and recent guidance from the Bank of Canada suggests that most borrowers should be prepared for a potential payment increase. Even with recent interest rate reductions, the majority of Canadians coming up for renewal will see their payments rise compared to their previous term. Understanding why this is happening—and how to prepare—can help you plan a smoother financial transition.
If you hold a fixed-rate mortgage, you may face a payment increase of approximately 15% to 20% at renewal. This is due to the higher interest rate environment compared to the historically low rates available before 2022. Nationally, the Bank of Canada expects about 60% of renewing borrowers to see some level of payment increase. By 2026, roughly one-third of all mortgage holders will experience higher monthly payments. While this can feel alarming, it is not a crisis. Most Canadians who obtained a mortgage before March 2022 have already been paying more than the minimum required, which will help soften the impact at renewal.
The good news is that there are effective strategies to manage renewal-related increases. One of the most impactful tools is extending your amortization at renewal. This option—available with many lenders—allows homeowners to reduce or even eliminate the increase in their monthly payment without refinancing. For many households, this adjustment is enough to make the renewal payment manageable while maintaining long-term financial stability. Since lenders will still complete a stress test on the new terms, most borrowers remain well within qualifying limits.
A proactive mortgage plan is essential, especially in a shifting rate environment. Reviewing your budget, assessing your current mortgage product, and understanding your upcoming renewal date gives you the advantage of time. Homeowners in Salmon Arm and across the Shuswap benefit from reviewing their situation 12 to 24 months before renewal, as early planning often creates more options, better pricing, and improved financial outcomes. Working with a mortgage broker can help you evaluate whether a simple renewal, refinance, amortization extension, or lender switch is the best fit for your goals.
This is not a moment for panic—but it is a moment for preparation. A mortgage renewal can be a financial stressor, but with a solid strategy and proper guidance, it can also be an opportunity to restructure your mortgage to better align with your long-term plans.
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