A man sits at a kitchen table with his head in his hands, surrounded by bills, receipts, and a calculator, stressed about rising household costs.

Facing Higher Mortgage Renewals in 2025? You’re Not Alone – Money Mentors Is Here to Help

For many Canadians, 2025 continues to be a financially stressful year. Thousands of households will be renewing their 5-year fixed mortgages, many of which were taken out during the COVID years when interest rates hit historic lows. Back in 2020, some homeowners locked in rates near 2%. Fast-forward to today, and renewal offers are often landing in the 4–5% range.

On paper, that difference may not seem huge. But in practice, it can mean hundreds of extra dollars added to a monthly payment, a heavy burden for families already juggling higher grocery bills, utility costs, and everyday living expenses. For households that built their budgets around those low pandemic rates, the jump feels less like a small adjustment and more like a major shift.

This is the reality facing well over a million Canadians in 2025, a wave the Canada Mortgage and Housing Corporation (CMHC) has identified as a significant “mortgage renewal surge.” These low interest rates, once a financial lifeline during uncertain times, are now going away, and for many, it’s bringing renewed anxiety about how to make ends meet.

The Weight of Renewal Stress

If you’re facing renewal this year or next, you may be experiencing:

Anxiety about whether you’ll still be able to afford your home
Uncertainty about whether to go fixed or variable
Frustration that, despite doing everything “right,” external factors beyond your control have made life harder
Lack of sleep due to financial stress

You’re not alone in feeling this way. At Money Mentors, we talk to Albertans every day who are worried about the financial road ahead. While we don’t directly refinance mortgages or provide secured debt solutions, we understand that debt isn’t just numbers on a page, it’s about your whole financial picture and the stress that comes with it.

Have questions?

Need more information or want to talk to an accredited financial counsellor for peace of mind? Let us help.
Call 1-888-294-0076 or fill out this form to speak with an accredited financial counsellor. It’s free for all Albertans.

Practical Tips for Navigating Your Mortgage Renewal

1. Start Sooner, Not Later

Don’t wait for your renewal letter to land in your mailbox. Reach out early to your lender, or even better, explore other lenders and brokers to compare rates. It might be easier to just sign your current bank’s renewal offer, but shopping around could save you thousands over the life of your mortgage.

2. Explore Prepayment Options

If you have a little extra cash on hand, consider using it before renewal to reduce your mortgage balance. Many lenders allow lump-sum payments or let you increase your monthly payment. Even a modest prepayment can shrink your principal, helping to keep your new payments more manageable. Just make sure you understand your lender’s prepayment limits and potential penalties.

3. Re-Amortize with Caution

Just as a quick FYI, your “amortization period” is simply the length of time you agree to take to pay off your mortgage in full, often 25 or 30 years when you first sign. At renewal, you sometimes have the option to extend that timeline.

Extending your amortization period can lower your monthly payments and give you short-term breathing room. But it often means paying significantly more interest over time. If you go this route, think of it as a temporary measure, and talk to a mortgage professional about how it might affect your long-term financial goals.

4. Consider Refinancing to Improve Cash Flow

Some homeowners choose to refinance at renewal, using their home equity to pay down higher-interest debts like credit cards or lines of credit. This can simplify payments and free up monthly cash flow. Just be mindful that refinancing increases your mortgage balance and may involve fees for appraisals or legal work.

5. Build a Cushion in Your Budget

If you can, start adjusting your household budget now to account for higher mortgage costs. Small changes, like trimming extra spending or setting aside a bit more in savings, can make the transition less jarring when renewal time comes.

6. Be Careful with Private Lenders

If your financial situation has changed and mainstream lenders won’t offer a renewal, you might be tempted by private lenders. While these can sometimes be a short-term solution, they often come with very high rates and fees. If you’re in this situation, make sure to work with a reputable broker and know exactly what you’re agreeing to.

7. Combine Strategies for Greater Relief

If higher mortgage payments are making it harder to manage your other debts, remember that our Orderly Payment of Debts (OPD) program can help with unsecured credit. Consolidating those payments could free up the breathing room you need to handle your mortgage renewal with less stress.

8. Stay Informed, and Reach Out for Support

Mortgage renewals are making national headlines because the Bank of Canada has identified them as one of the biggest financial risks ahead. But you don’t need to navigate this alone. Staying informed and talking through your options with a counsellor can help you act proactively, not reactively.

How Money Mentors Can Support You

Even though our Orderly Payment of Debts (OPD) program is designed for unsecured credit like credit cards, lines of credit, or payday loans, our certified financial counsellors look at the entire picture of your finances. That means:

Budget Support: We can help you build a monthly budget that makes room for higher housing costs while ensuring essentials like food and transportation are covered.
Debt Consolidation Options: If your mortgage renewal is making other debts harder to manage, OPD might be a solution to reduce payments on your unsecured debts, freeing up cash flow.
Personalized Counselling: Our accredited financial counsellors listen with compassion, and without judgment. We’ll work with you to ease stress and create a plan you can realistically stick to.
Tools and Education: From financial education courses to online resources, we equip you with strategies to navigate today’s financial challenges and plan for tomorrow.

Sometimes, having someone to talk to, especially someone who understands both the numbers and the emotions, is just as important as the financial plan itself.

A Message of Hope

We know that headlines about a “mortgage cliff” or “payment shock” can sound frightening. But here’s the truth: you don’t have to face this alone. Whether your concern is managing unsecured debt alongside a bigger mortgage payment, or simply needing a compassionate ear to talk through your options, Money Mentors is here for you.

We’ve been helping Albertans for over 28 years, and we’ll continue to be here as families navigate the next wave of financial change. With the right guidance and support, this next chapter doesn’t have to be about fear; it can be about resilience and confidence.

Final Word

If you’re approaching a mortgage renewal in 2025 and feeling anxious, reach out. Let’s talk through your budget, explore your options, and take the weight off your shoulders.

Call us today for a free, confidential chat. Our certified financial counsellors are here to help you find a path forward, because financial wellness is about more than just debt. It’s about peace of mind.