Is Your Renewal Coming Up? Why 2025–2026 Will Be a Make-or-Break Moment for Homeowners
- Edith Parinas
- Dec 3, 2025
- 3 min read
With rate cuts underway — but not enough to soften payment shock — now is the time to plan ahead.
If your mortgage is renewing in 2025 or 2026, you’re entering one of the most unpredictable (and important) renewal seasons Canada has ever seen.
Why?Because we’re in a strange market crossover:
✔ Rates are finally coming down
✔ But not fast enough to offset the massive payment increase many homeowners will face
✔ And lenders are tightening qualification rules again
All of this means:Your renewal strategy matters more than ever.
Let’s break it down clearly — no fear, no confusion, just straight facts and smart planning.
📈 1. Payment Shock Is Still Real — Even With Rate Cuts
Here’s the truth most headlines don’t tell you:
While rates are dropping, they’re not going back to the ultra-low levels of 2020–2021 anytime soon.
That means many homeowners coming off:
1.79% fixed
2.25% fixed
1.45% variable
…will still see higher monthly payments at renewal.
Even a cut from 5.7% → 4.7% doesn’t erase the gap.
➡️ If you haven’t run the numbers yet, now is the moment.
🧮 2. Qualification Rules Are Tightening — Quietly
Because rates are falling, lenders are compensating in other areas:
Stricter debt-to-income limits
Tougher reviews for self-employed borrowers
More documentation
Extra scrutiny if your payments have been interest-only
If you’ve accumulated debt during the high-interest years (credit cards, lines of credit, car loans), this could reduce your options.
➡️ TIP: If your renewal is inside 18 months, start preparing NOW, not later.
🔄 3. Don’t Auto-Renew. You Could Overpay by Thousands.
Here’s something I see every week:
A lender sends a renewal letter.It looks simple. Easy. Convenient.But the rates? Almost never the best available.
Auto-renewing is designed to benefit the lender — not you.
Buyers who shop their renewal with a broker often save:
Lower rate
Lower monthly payment
Better terms
Stronger financial flexibility
➡️ Your renewal is a brand-new mortgage approval. Treat it that way.
🛠 4. Strategies to Reduce the Payment Shock (That Actually Work)
These are real tools Canadian homeowners are using in 2025:
✔ Extend your amortization
This is one of the fastest ways to bring payments back within comfort.
✔ Refinance to consolidate debt
If you’re carrying high-interest debt, refinancing could save you hundreds monthly.
✔ Switch lenders
Your current lender is not always your best option.
✔ Add a co-signer if qualification is tight
This can open better rates and more lender options.
✔ Blend & extend (for some lenders)
If you renewed early in the spike, this may reduce payments.
➡️ Your best option depends on your exact situation — not a one-size-fits-all strategy.
🔍 5. The Biggest Mistake? Waiting Too Long
Most homeowners start planning 60 days before renewal.
By then, it’s often too late.
Lenders may:
Decline switches if credit has changed
Refuse refinances inside 30 days
Not offer the best rates under time pressure
The best time to start your renewal plan:
👉 12–18 months before your date
The second-best time:
👉 Today
🌿 Edith’s Final Thoughts: Let’s Take the Stress Out of Your Renewal
Renewals don’t have to be scary or overwhelming — not when you have a strategy that supports your financial wellbeing.
As both a mortgage broker and a yoga teacher, I believe in grounding the process:
✨ Clear numbers
✨ Clear options
✨ Clear decisions
✨ Zero panic
Your renewal should feel like a fresh start — not a crisis.
Let’s build a plan that feels stable, spacious, and aligned with your next chapter.
📞 Your Next Step
Whether you renew in 6 months or 18 months, let’s get your roadmap ready:
📥 Or email me directly at hello@edithparinas.com
BONUS: Free Resources to Help You Take the First Step
– Edith Parinas
'The Mortgage Broker ~ The Yogi ~ The Blogger'
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