Overview
A significant wave of mortgage renewals is hitting Canada in 2025, with about 60% of outstanding mortgages set to renew by the end of next year. Most of these are five-year, fixed-rate mortgages originated during the low-rate pandemic years. As a result, many homeowners must adjust to higher monthly mortgage payments amid a changing interest rate environment.
Key Details on 2025 Mortgage Renewals
Who Is Affected?
- 60% of Canadian mortgages are set to renew in 2025 or 2026.
- Majority are five-year, fixed-rate terms locked in at historically low pandemic rates.
- Royal LePage estimates 1.2 million mortgages are up for renewal in 2025.
What to Expect: Rate and Payment Changes
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Interest Rates:
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As of July 2025, renewal rates for three- and five-year fixed mortgages are generally 4% or higher at major banks and brokerages, though some brokerages offer rates just under 4%.
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Variable rates are also around 4% or higher.
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Bond market volatility is influencing fixed rates, with upward pressure likely if yields continue to rise.
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Monthly Payment Impact:
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Homeowners with a mortgage of $500,000 who locked in at 2.5% in 2020 could now face payments about $320/month higher at a 4.0% rate.
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The average monthly mortgage payment for those renewing in 2025 could be 10% higher than December 2024, with payments for those renewing in 2026 projected to be about 6% higher.
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In high-cost regions, annual increases could reach over $1,000, with areas like Fraser Valley, Greater Vancouver, and the GTA among the most affected.
Example: Estimated Monthly Increases by City (Assuming 10% Down, Fixed Rate Renewal)
| Region | Est. Monthly Increase (2025) | Annual Increase |
|---|
| Fraser Valley, BC | $208 | $2,496 |
| Greater Vancouver | $132 | $1,584 |
| Greater Toronto | $117 | $1,404 |
| Victoria | $99 | $1,188 |
| Hamilton-Burlington | $85 | $1,020 |
| Source: Zoocasa, Financial Post | | |
Why Aren't All Homeowners Equally Impacted?
- Not all borrowers will see the same payment hikes; about 40% of renewals are expected at higher rates.
- Most mortgage holders were stress-tested at higher rates, so over 90% of those with five-year fixed mortgages will see increases smaller than they qualified for.
- Many households have seen rising incomes and increased home equity, providing a buffer.
Current Market Conditions
- The Bank of Canada held its overnight rate at 2.75% as of June 2025, keeping variable mortgage rates steady for now.
- Lower rates over the past year have eased some pressure, and aggregate mortgage payments nationally have declined, but many individual households are still facing higher payments at renewal.
- The use of HELOCs has declined, indicating homeowners have additional borrowing capacity if needed.
Provincial and Regional Variations
- Regions with higher home values, such as British Columbia and Ontario, are seeing larger payment increases at renewal.
- In contrast, provinces with lower average home prices may see more modest increases.
Government Programs and Support
- Most pandemic-era mortgages required stress test qualification, positioning homeowners to handle higher payments.
- There is no new, specific federal support program for 2025 renewals, but existing first-time buyer incentives and provincial programs may help those purchasing or refinancing.
Major Canadian Bank Renewal Offerings
| Bank | Renewal Fixed Rate (5-year) | Renewal Variable Rate | Notes |
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| RBC | ~4.2% - 4.5% | ~4.5%+ | Higher than broker rates |
| TD, BMO, Scotiabank, CIBC | ~4.1% - 4.5% | ~4.3% - 4.7% | Variable rates typically higher |
| Brokerages | 3.8% - 4.0% | ~4.0%+ | May offer sub-4% rates to qualified borrowers |
Rates are approximate as of July 2025, and may vary by province, property type, and borrower profile.
First-Time Homebuyer Programs
- First-Time Home Buyer Incentive: Shared equity mortgage with the Government of Canada.
- Home Buyers’ Plan (HBP): Withdraw up to $35,000 from RRSPs for a down payment.
- Provincial programs such as Ontario's Land Transfer Tax Rebate or BC’s First Time Home Buyers’ Program remain available.
What Should You Do If Your Mortgage Is Up for Renewal?
- Start shopping for rates 4–6 months before your renewal date.
- Compare offers from your current lender, major banks, and mortgage brokers.
- Consider switching lenders for a better rate; this may require a new application and stress test.
- Review your financial situation and consider adjusting the amortization period or payment frequency to manage cash flow.
- Use platforms like theratefinder to compare competitive mortgage rates and start a personalized application with top Canadian lenders. Begin your application at theratefinder.ca/onboarding for tailored solutions.
Summary & Next Steps
- Most Canadians renewing mortgages in 2025 will face higher payments, but the impact is mitigated by lower rates compared to 2023-2024 and prior stress testing.
- Begin renewal planning early, compare options, and be proactive in negotiating.
- For the best rates and expert guidance, use theratefinder to compare offers and secure the most competitive mortgage for your needs.
Actionable steps:
- Mark your renewal date and start rate shopping now.
- Gather your financial documents for a smooth application process.
- Contact theratefinder or a trusted broker for personalized renewal strategies.
- Assess your budget and prepare for possible payment increases.
If you have specific questions about your province, lender, or mortgage type, provide more details for tailored advice.