3 Tips For Renewing Your Mortgage in Canada in 2025

Renewing a mortgage in 2025 in Canada comes with some unique challenges and opportunities, especially given recent economic shifts and interest rate changes. In this blog, we’ll offer you mortgage renewal advice through 3 helpful tips:

1. When to Renew Your Mortgage

Most lenders will send out renewal notices a few weeks before your term ends. Instead of waiting till this time, you can start shopping 6 months before mortgage renewal. This will give you time to compare mortgage renewal rates, negotiate mortgage renewal based on this, and, if necessary, consider switching mortgage lenders for a better deal. Before you begin your search, consider the following questions as a part of your strategy:

• Should I go with fixed or variable?
• Would a shorter term help me avoid higher rates?
• Should I increase my amortization temporarily to reduce payment strain? 

2. Budget Accordingly

Interest rates have risen significantly from the levels seen during the pandemic. While the Bank of Canada policy rates are expected to remain at 2.75% through 2025 before falling to 2% by the end of 2026.

• Fixed-rate renewals could be in the 3-4% range (depending on term and credit).
• Variable-rate renewals might offer initial savings but carry more risk if rates don’t fall quickly.

As a part of your planning, use a mortgage calculator to model your monthly payment. You can check out Trico Homes’ mortgage calculator here. One strategy to access better rates is boosting your credit score, which can give you access to better rates as well.

3. Work With a Mortgage Broker

A broker will have access to multiple lenders and help you negotiate the best deal. They also will have the expertise required to handle unique circumstances and a deep understanding of the economic landscape. A mortgage broker can also answer any questions you may have around portability and payment terms and your overall mortgage strategy. If you’re not sure where to start, Trico Homes has many preferred lenders who can help guide you in the right direction.

Ready to learn more? Contact us today to find your dream home!