Worried About Your Mortgage Renewal? You’re Not Alone

Tanya Toye • June 18, 2025

Worried About Your Mortgage Renewal? You’re Not Alone



If your mortgage renewal is coming up soon, you're likely feeling a bit of financial pressure—and you’re not the only one.


A recent survey shows that over half of Canadian homeowners believe their upcoming mortgage renewal could impact their current living situation. With interest rates still higher than what many borrowers locked in before 2022, 45% of those renewing in the next 12 months expect their monthly payments to increase.


Even though the Bank of Canada has held its key overnight rate steady at 2.75%, borrowing costs remain elevated compared to the low-rate years we saw earlier in the decade. And that’s changing how Canadians think about their finances.


Changing Plans and Tightening Budgets

Among those worried about their renewal, 73% say they’re already cutting back on discretionary spending—things like eating out, entertainment, or travel—to brace for higher mortgage payments.

For many, it goes deeper than just trimming the budget. Nearly one in four surveyed homeowners said they’re rethinking their entire financial strategy. Some are pressing pause on home renovations (43%), while others are considering downsizing or relocating to a more affordable area (29%). A smaller group (15%) is even open to major lifestyle changes, like moving in with roommates or relocating to a new neighbourhood altogether.


Fixed-Rate Mortgages on the Rise

In this climate, most homeowners looking to renew are leaning toward fixed-rate mortgages, with 75% preferring the stability of predictable payments. For those facing uncertainty, locking in a rate for the next few years can offer peace of mind—even if it means paying a little more in the short term.


First-Time Buyers Are Feeling It Too

It’s not just current homeowners feeling the pinch. A separate survey found that more than half of Canadians planning to buy a home are cutting back on non-essential spending to save for their down payment or other buying costs. About 31% are even considering tapping into savings or investment accounts like TFSAs, RRSPs, or first-time home savings accounts to make their purchase possible.


What This Means for You

Whether you’re preparing to renew or purchase for the first time, this environment calls for smart, strategic planning. You’re not alone in feeling uncertain—but with the right guidance, you can navigate these changes confidently.


Have questions about your upcoming renewal or wondering what type of mortgage is right for today’s market? Let’s connect. We're here to help you make informed, confident decisions about your home financing.


Tanya Toye

Mortgage Broker

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Proposed GST Rebate Could Save First-Time Homebuyers Thousands

By Tanya Toye • June 20, 2025
There’s promising news out of Ottawa for first-time homebuyers that could significantly reduce the cost of getting into the housing market when purchasing a newly built or substantially renovated home. On May 27 th , the federal government proposed legislation to provide GST relief on new home purchases for first time buyers: A full rebate on purchases of up to $1 million and a partial rebate on homes between $1Million and $1.5Million. The proposal still needs to be passed by parliament, but this change could translate into savings of up to $50,000, making a big difference in both the short- and long-term homeownership affordability. In today’s high-price environment, first-time buyers often struggle to save the required down payment while also qualifying for a large enough mortgage. By removing or reducing the 5% GST on qualifying new builds and substantially renovated properties, this policy eases some of that financial burden. A recent report from Desjardins Economics shows these savings are more than just hypothetical. A first-time buyer purchasing a new home at the $1 million mark (inclusive of tax) could see a reduction of around $240 on their monthly mortgage payments. This money could then be redirected toward savings, home improvements or simply making life more manageable. Plus, with the tax removed, the required down payment is also slightly lower, which helps ease upfront costs. Maximizing support for first-time homebuyers For parents helping children buy their first home – whether through gifting the down payment or co-signing a mortgage – this change presents an opportunity to maximize that support. A lower purchase price and more affordable carrying costs make it easier for younger buyers toqualify for financing and remain financially stable after closing day. If you’re considering buying a newly built or substantially renovated home, now is a great time to talk to your mortgage broker about how this GST rebate could impact your mortgage strategy – and your bottom line. Have questions about your first-time homebuyer mortgage options or wish to book a free review to see if your mortgage is still right for you?  I’m here to help: 604-788-8693 | tanya@tanyatoye.ca

Accessing Your Home Equity

By Tanya Toye • June 18, 2025
If you've been a homeowner for many years, it is likely your property value has increased significantly. One advantage of homeownership is the opportunity to build equity. Home equity growth, partnered with the security of living in your own home, is why most Canadians believe homeownership is the best choice for them! While home equity is one of your greatest assets, accessing home equity is often overlooked when putting together a comprehensive financial plan. So if you’re looking for a way to access some of your home equity, you’ve come to the right place! Simply put, home equity is the actual market value of your property minus what you owe. For instance, if your home has a market value of $650k and you owe $150k, you have $500k in home equity. If you want to stay in your home but also access the equity you have built up over the years, there are four options to consider. Conventional Mortgage Refinance Assuming you qualify for the mortgage, most lenders will allow you to borrow up to 80% of your property’s value through a conventional refinance. Let’s say your property is worth $500k and you owe $300k on your existing mortgage. If you were to refinance up to 80%, you would qualify to borrow $400k. After paying out your first mortgage of $300k, you’d end up with $100k (minus any fees to break your mortgage) to spend however you like. Even if you paid off your mortgage years ago and own your property with a clear title (no mortgage), you can secure a new mortgage on your property. Reverse Mortgage A reverse mortgage allows Canadian homeowners 55 or older to turn the equity in their home into tax-free cash. There is no income or credit verification; you maintain ownership of your home, and you aren't required to make any mortgage payments. The full amount of the mortgage will become due when you decide to move or sell. Unlike a conventional mortgage refinance, reverse mortgages won’t allow you to borrow up to 80% of your home equity. Rather, you can access a lesser amount of equity depending on your age. The interest rates on a reverse mortgage can be slightly higher than the best rates currently being offered through standard mortgage financing. However, the difference is not outrageous, and this is an option worth considering as the benefits of freeing up cash without mortgage payments provides you with increased flexibility. Home Equity Line of Credit (HELOC) A Home Equity Line of Credit allows you to set up access to the equity you have in your home but only pay interest if you use it. Qualifying for a HELOC may be challenging as lender criteria can be pretty strict. Unlike a conventional mortgage, a HELOC doesn't usually have an amortization, so you're only required to make the interest payments on the amount you've borrowed. Second Position Mortgage If the cost to break your mortgage is really high, but you need access to cash before your existing mortgage renews, consider a second mortgage. A second mortgage typically has a set amount of time in which you have to repay the loan (term) as well as a fixed interest rate. This rate is usually higher than conventional financing. After you have received the loan proceeds, you can spend the money any way you like, but you will need to make regular payments on the second mortgage until it's paid off. If you’re looking for a way to access the equity in your home to free up some cash, please get in touch. You’ve got options, and we can work together to find the best option for you!