Renewal of Outstanding Mortgages in Canada: Expected Impact and Trends

Roughly 60% of outstanding mortgages in Canada will renew in 2025 or 2026, with the majority holding five-year, fixed-rate mortgages. The type of mortgage held will determine whether payments increase or decrease upon renewal. Borrowers with five-year, fixed-rate mortgages can expect an average payment increase of 15-20% compared to their December 2024 payment, while those with variable-rate mortgages, particularly those with variable payments, may see a decline of 5-7%.

Key Takeaways:

• Approximately 60% of outstanding mortgages in Canada will renew in 2025 or 2026, with a majority of borrowers holding five-year, fixed-rate mortgages.
• The type of mortgage determines the payment outcome upon renewal, with fixed-rate mortgages experiencing an average payment increase of 15-20% and variable-rate mortgages experiencing a decline of 5-7%.
• Individuals with five-year, fixed-rate mortgages may see their average payment increase upon renewal, while those with variable-rate mortgages, especially variable payments, may see a decrease.
• Ratehub.ca is a mortgage-rate comparison marketplace and mortgage brokerage that helps millions of Canadians compare and obtain the best mortgage rates, credit cards, insurance, deposits, and loan products.
• The lowest available mortgage rates as of market close on July 24 are sourced by Ratehub.ca.
• A comprehensive list of today's mortgage rates for each term and type can be found on Ratehub.ca.

Statistics:

• 60% of outstanding mortgages in Canada will renew in 2025 or 2026 (Bank of Canada analysis).
• 15-20% average payment increase for five-year, fixed-rate mortgages upon renewal (Bank of Canada analysis).
• 5-7% average payment decline for variable-rate mortgages, particularly those with variable payments, upon renewal (Bank of Canada analysis).

Sources:

• Bank of Canada
• Ratehub.ca: a mortgage-rate comparison marketplace and mortgage brokerage
• Ratehub.ca (mortgage rates as of July 24)