Date: June 13, 2024

Canadians Are Feeling Anxiety About Mortgage Renewals 😟🏠

A recent Mortgage Professionals Canada (MPC) survey revealed growing anxiety among Canadian mortgage holders about their upcoming renewals. With 76% of respondents expressing concern, it’s clear that financial stress is on the rise. Let’s take a closer look at the key points, worries and address them.

Main Points of Concern 📊

Interest Rates 📈

Worry: For 58% of respondents, rising interest rates are the primary worry. With the Bank of Canada’s recent rate hikes, many borrowers fear the impact on their monthly payments.

Response: Based on current trends in fixed and variable mortgage rates, interest rates are likely to experience a gradual decline over the coming year. As of today, the Bank of Canada (BoC) has lowered its overnight rate to 4.75%, which has already prompted a slight decrease in variable mortgage rates. Fixed rates for three- and five-year terms are available in the low 5% or below 5% range, making them an attractive option for those seeking stability. Economists predict that the Bank of Canada will continue to reduce its benchmark rate, with expectations of another 100 basis points cut by the end of 2024, bringing the rate down to 4%. This reduction will be cautious and measured, influenced by ongoing efforts to manage inflation and economic growth. As bond yields respond to these changes, fixed mortgage rates are expected to decrease before variable rates follow suit.

Overall, it seems that we are in an interest-declining market. However, those coming up for renewal may be worried about higher monthly mortgage payments, and that is where we suggest we connect sooner rather than later to discuss your possible payment and review amortization. Although I’m not a fan of increasing amortization, each term has a life of its own and should be looked at individually. This may be the term where you increase the amortization to help combat cash flow; however, the next term, you can accelerate amortization back on track. There is no right answer here; the correct answer is the one that allows you to live the life you want and still meet your financial responsibilities.

Meeting Monthly Payments 💵

Worry:  24% are specifically concerned about their ability to meet these payments. This worry reflects broader economic uncertainties and potential increases in living costs.

Response: There is no denying it: your payments will be higher on your renewal than your current minimum payment. However, if you’ve been reading my updates, you would have increased your monthly payments to help meet the upcoming higher new payment. If your rate is under 3%, a suggestion would be to move to accelerated bi-weekly payments if you still need to do so. Increase those payments as much as you can comfortably. With us coming out of a low interest rate period, you would have paid more of your principal off, which is fantastic. Still, on renewal, your mortgage balance will be significantly lower, resulting in a higher payment, with a higher interest and decreased amortization period. As I mentioned, each term should be looked at as an individual and not a whole of 25/30 years. Why? Because there are terms where you will win big (like the last term for most of us), and there are terms where you have to adjust to the conditions of the market (that’s us now).

Impact of Rising Rates 📊

Worry: Borrowers fear that rising interest rates will significantly increase their financial burden. Many anticipate that higher payments upon renewal could strain their budgets and financial stability.

Response: The theme of this article is term and amortization, so again, I encourage you to discuss this with us. We will help you find a solution that allows you to stay as close as possible to your current payment. As with every solution, there are pros and cons, so let’s review them.

Preparedness 📝

Worry: 37% of mortgage holders have taken proactive steps to prepare for higher rates. These measures include increasing savings and reducing overall debt, reflecting a prudent approach to potential financial challenges.

Response:For those of you who have listened to me talk about increasing your payments, you are halfway there. A discussion about your next mortgage is required to truly prepare for your next term. Often, clients ask me for the lowest rate, thinking the lowest rate is the lowest payment, but that’s not the case. So, let’s review your particular situation.

Advice Sought 📚

Worry: 53% of respondents have sought financial advice to navigate these potential challenges. Mortgage brokers and financial advisors are primary sources of guidance, helping borrowers make informed decisions.

Response: So far, this year felt very much like post-pandemic years when the phone rang, and clients had questions about preparing for their renewal or were looking for guidance on navigating the next year or more. As a Mortgage Broker, I enjoy helping my clients find the solution that works for them, not only for today but also for planning tomorrow.

Wrap-Up 🏁

The MPC survey underscores significant anxiety among mortgage holders about future financial pressures due to interest rate changes. It also highlights the importance of financial planning and professional advice for borrowers facing renewal.

For those approaching your renewal, consider setting up a time to review your current situation and explore the best strategy to move forward confidently. 🗓️

Click here to book a time to connect and review your questions.

Talk soon,


Mortgages can be complicated; we are here to help you make “cents” of it.

We focus on Mortgage Solutions, Period!

To learn more connect with Ana Cruz 905.870.0513 or email at