As 2025 looms, over 1.2 million Canadian mortgages are up for renewal, and Ontario homeowners could be hit hardest. Are you prepared for what’s next?

The Financial Landscape Has Shifted

Back in the early 2020s, mortgage rates hovered at historic lows—around 1% or less. Fast forward to 2025, and those days feel like a distant memory. With the Bank of Canada’s interest rate currently sitting at 3.75%, a significant leap from the pandemic-era 0.25%, many homeowners are bracing for higher monthly payments.

The Canada Mortgage and Housing Corporation (CMHC) warns that about 85% of the mortgages up for renewal in 2025 were signed during that low-rate period. This means 1.05 million Canadian households may soon grapple with “significantly higher interest rates,” and Ontario homeowners aren’t exempt from this reality.

What Does This Mean for You?

Here’s a breakdown of what’s happening:

• Higher Monthly Payments: A mortgage originally signed at 1% could now see rates 2–3 times higher.
• Rising Delinquency Rates: Mortgage payments over 90 days past due have risen to 0.19%, up from a historic low of 0.14% in 2022.
• Debt Pressures: Increased delinquencies in credit cards, auto loans, and lines of credit signal financial stress for Canadians.

Impact on Ontario Homes: With housing prices and debt levels higher in Ontario than most provinces, the strain on homeowners could be even greater.

Finding Opportunity Amid Challenges

While these shifts might sound daunting, they also create opportunities for homeowners and buyers alike. For example, new mortgage rules set to take effect in 2025 could offer benefits, such as improved refinancing options and support for first-time buyers. Learn more about these changes and how they could work in your favor in our blog: New Mortgage Rules: What’s Changing in 2025 and How to Benefit.

Imagine You’re a Homeowner

Imagine you’re a homeowner who purchased your first Ontario home in 2020. Your mortgage rate was a comfortable 1.5%, but as 2025 approaches, you face a renewal at 4.5%, increasing your monthly payments by $800. It’s a daunting shift, but with careful budgeting and expert guidance, you find a way to adapt. This scenario, like so many others, underscores the importance of preparation and support during times of financial change.

How to Stay Ahead

Here are actionable steps to help you adapt:

1. Know Your Renewal Date: Check when your mortgage term ends and start planning early.
2. Explore Refinancing Options: Speak with a mortgage advisor about locking in favorable terms or extending your amortization.
3. Review the New Rules: Changes in 2025 may provide opportunities for refinancing or incentives for first-time buyers. Explore the details here.
4. Adjust Your Budget: Begin allocating funds now to prepare for potential increases.
5. Stay Informed: Follow updates on interest rates and market trends to make informed decisions.

Your Action Plan Starts Here

Is your mortgage up for renewal in 2025? It’s not too early to take steps that could save you stress and money. Follow our blog for updates on the housing market, tips for navigating rate increases, and more stories from people like you.

Contact us today for personalized advice or to explore Ontario real estate opportunities tailored to your needs. Together, we can help you navigate 2025 with confidence.

Don’t face this alone—stay informed, stay prepared.