If you locked in your mortgage during the golden days of sub-2% rates, congratulations—you caught lightning in a bottle. But now, the party’s ending. Over 60% of Canadian fixed-rate mortgages are set to renew by the end of 2026, and the sticker shock is real.
A $400,000 mortgage at 1.89% becomes $400 to $700 more per month at today’s average 5.5%–6% range—and that’s not even the worst-case scenario.
My friends and clients, Jillian and Marco, (not their real names to protect them), a couple in Wasaga Beach who locked in at 1.84% in 2020 for a 5-year fixed mortgage. Their payment on their $380,000 mortgage was around $1,570 a month. Life was manageable. Two kids, decent jobs, a little breathing room for activities and savings.
Last month, they got their renewal letter. Their lender offered them a 5.64% renewal rate. That same mortgage? Now it’s $2,240 a month. That’s a $670 increase every single month.
Suddenly,
· the kids’ extracurriculars became negotiable.
· Vacations? Canceled.
· the stress? Palpable.
But here’s what changed when they called me:
✅ We did a full mortgage review — not just rate comparison, but budget alignment.
✅ We found a better rate through one of the 80+ lenders I work with—many of whom offer exclusive, unadvertised specials just for mortgage brokers like me, saving them over $150/month versus their bank’s offer.
✅ We restructured with a longer amortization, softening the monthly hit while keeping flexibility.
✅ And we added a Home Equity Line of Credit in case cash flow gets tight.
The result? Still an increase—but a manageable one. More importantly, they felt empowered again, not panicked.
This is your Mortgage Renewal Survival Guide:
1.Start Early – Don't wait for the letter. Most banks send them 30 days before maturity, but you can start planning 120–180 days out.
2.NEVER (seriously, NEVER, NEVER, NEVER) Accept the First Offer – That renewal letter is usually convenient, not competitive.
3.Shop With a Broker – I work with 80+ lenders—banks, credit unions, and monoline lenders—with access to daily rate specials not available to the “mainline” bankers. Simply put, I fight harder to get you the very best mortgage for your needs/Every Single Time!
4.Restructure Intelligently – Blend and extend? Refinance? HELOC? Payment smoothing? There are options—but only if you start early.
5.Think Big Picture – Sometimes we need to look at debt consolidation, budgeting, or interest-only options to ride out the higher rate period.
Here’s a quick example:
· Current mortgage balance: $450,000
· Old payment @ 1.89%: $1,886/month
· New payment @ 5.49%: $2,793/month
· Option: Re-amortize to 30 years = $2,512/month — saves ~$280/month
· Add HELOC for emergency buffer = peace of mind
These aren’t one-size-fits-all solutions—but they’re real strategies that are working for people across Georgian Bay right now.
Let’s not wait for the shock. Let’s plan together now—because your bank’s letter might arrive with a rate, but I’ll show up with a strategy.
Stuart Lessels
Your “Go To” Mortgage Broker for Georgian Bay and beyond
📞 (705) 445-1234