Even as interest rates are forecasted to gradually decline, most borrowers are still expected to face significant increases compared to their current ultra-low-rate contracts signed during the pandemic housing boom.
🔍 What’s Changing for Canadian Homeowners?
- 2025 Renewals: Average monthly payments projected to rise 10%
- 2026 Renewals: Payment increases expected to moderate to 6%
- Fixed-Rate Mortgages: The steepest hikes—15% to 20% on average
- Variable-Rate Mortgages: Mixed results—some see savings, others see surges
According to Ratehub.ca, a homeowner who bought an average-priced home in 2020 with a fixed rate could face $424/month more, or $5,100 annually, at renewal—even as their balance declines.
💸 Will Your Budget Break? Understanding the Real Impact
Mortgage renewals aren’t just about rates—they're about affordability.
The Bank of Canada predicts the Mortgage Debt Service (MDS) ratio—the share of income spent on mortgage payments—will climb from 15.3% to 18% by 2026 for those with increasing payments.
While some variable-rate borrowers might catch a break with lower payments, nearly 10% could see payment spikes over 40%.
👪 The Hidden Truth: Most Canadians Need Help to Buy
Buying a home isn’t getting easier. The 2025 State of the Housing Market by Mortgage Professionals Canada reveals:
- 70% of recent buyers needed financial help (from family, gifts, or co-signers)
- 74% of mortgage holders renew in the next 3 years
- 1 in 5 are worried about how renewal will impact their finances
- Fixed-rate mortgages dominate with 68% of borrowers choosing stability
🛑 Don’t Wait to Be Surprised at Renewal
Lendworth offers equity-based mortgage solutions that give you control before your mortgage renewal becomes a financial shock.
✅ Refinance before rates reset
✅ Unlock home equity to lower your monthly payments
✅ Consolidate debt into one manageable mortgage
✅ Bridge the affordability gap with flexible terms
Whether you’re looking to renew, refinance, or restructure, our team is here to help you plan ahead.
📈 2025–2026 Mortgage Renewal Forecast: Key Takeaways
| Borrower Type | Projected Payment Change | Notes |
|---|---|---|
| Fixed-Rate (5-Year Term) | 🔺 15% to 20% | Most exposed to renewal shocks |
| Variable-Rate (Adjustable) | 🔻 5% to 7% | May benefit from lower rates |
| Variable (Fixed Payments) | 🔺 40% or 🔻 7% | Wide variation depending on rate and amortization strategy |
| 2020 Homebuyers (Fixed-Rate) | 🔺 $424/month | ~$5,100/year increase at renewal |
🧠 What Can You Do Now?
At Lendworth, we specialize in custom lending solutions designed for the real estate realities of today.
📞 Speak to a Mortgage Advisor Today
💼 Explore Refinance and Equity Loan Options
📍 Serving Ontario, Toronto, and Surrounding Areas
📢 Don't Let Your Mortgage Renewal Catch You Off Guard — Plan Ahead with Lendworth
Secure your future. Protect your cash flow. Leverage your equity.
🔗 www.lendworth.ca | 📞 905-597-1225 | ✉️ info@lendworth.ca