As we reach the midpoint of 2025, Canadian homeowners—especially in Abbotsford, Surrey, and Edmonton—face one of the most significant mortgage renewal cycles in recent history. With interest rates no longer rising but not yet aggressively falling, renewing your mortgage this year is not just about signing a new term—it’s about negotiating power, timing, and strategy.
The 2025 Renewal Crunch Is Real
Roughly 45% of fixed-rate mortgages in Canada are set to renew by the end of 2026, and a large number of those are coming up in 2025. Many were locked in at ultra-low rates during 2020–2021, some below 2%. Now, even with the Bank of Canada’s mid-year rate hold at 2.75%, renewal offers are coming in at 4.75% or higher for fixed terms—causing payment shocks of $500+ per month for average households.
If you’re in British Columbia or Alberta, you may already be feeling the weight of this shift. Fortunately, with proactive planning, you can mitigate the impact—or even use your renewal as a financial advantage.
Understand the Market Before You Sign
Renewing your mortgage isn’t just a procedural task—it’s a second chance to optimize your home financing. Here’s how:
- Avoid Auto-Renewals—Compare Instead
Your current lender will likely send a renewal offer 3–4 months before your term ends. But auto-renewals often come with higher-than-market rates and fewer options. Consider reviewing our guide on mortgage renewal strategies in Surrey to explore your full set of choices.
- Shop Around or Consider Transfers
Even if you’ve been with the same lender for years, switching could save thousands over the next term. Mortgage transfers allow you to port your loan to a new lender—often with minimal legal fees and no new appraisal. Our blog on smart strategies for mortgage transfers breaks down the process and timing.
- Negotiate the Term and Type That Fits 2025
With rates expected to drop further into 2026, a 1- to 3-year fixed term may offer the flexibility you need. Some borrowers are also revisiting variable-rate mortgages, hoping to benefit from future cuts. Be sure to compare fixed vs. variable options using updated rate tables.
Planning Strategies for Different Borrower Types
First-Time Buyers on Renewal
If you purchased your first home during the COVID-era price boom, this may be your first mortgage renewal. Revisit your amortization, budget, and household goals. You can also explore our first-time homebuyer programs if you’re considering upsizing or refinancing.
Investors with Rental Properties
If you own income properties in BC or Alberta, use this renewal period to revisit cash flow and financing. Our resource on mortgages for investment properties can help optimize your portfolio strategy.
Struggling with Multiple Debts?
A mortgage renewal is often the best time to consolidate debt. If you’re juggling credit cards, lines of credit, or car loans, refinancing your mortgage to include those debts can lower your interest rate and monthly burden. Learn more in our guide to refinancing in 2025.
Local Outlook: Abbotsford, Surrey, and Edmonton
In Abbotsford:
Home prices have stabilized slightly, offering homeowners a balanced market for renegotiation. If your equity position has improved, now may be a good time to leverage it for better terms. Our Abbotsford mortgage advisors can help assess your position.
In Surrey:
The Fraser Valley market is seeing more inventory and competition among lenders. Be sure to review renewal options early, and consider combining with a line of credit if you’re planning a renovation or education expense.
In Edmonton:
With relatively stable home prices and a more affordable entry point, Edmonton borrowers can use their renewals to tap into equity and invest in other assets. Our Edmonton mortgage solutions include tools to model your refinance vs. renewal impact.
Renewal Checklist for 2025 Borrowers
Before your 2025 renewal date approaches, check off the following:
- Review your mortgage statement for current balance and remaining amortization.
- Compare at least 3 renewal quotes, including from alternate lenders.
- Use tools like our mortgage calculators to estimate new payments under different rates.
- Request a broker review 90 days in advance—it costs nothing and could save thousands.
- Download and complete our Renewal Preparedness Form (available on request) to help guide the discussion.
What If Rates Drop Again in Late 2025?
The Bank of Canada’s June 2025 rate pause has set the tone: after a cautious 50-basis-point reduction earlier this year, future rate cuts are expected but not guaranteed. Analysts now anticipate a modest 25-basis-point drop in Q4, contingent on inflation targets holding.
If you’re nearing renewal and tempted to wait for lower rates, here’s a smarter strategy:
- Opt for a 1- or 2-year fixed term to stay flexible.
- Consider a variable mortgage, if your risk tolerance allows.
- If already locked in at 5–6% from 2022–2023, explore early mortgage refinancing options—even with penalties, long-term savings could outweigh costs.
Renew or Refinance? How to Decide
Not all mortgage renewals are created equal. Sometimes, a strategic refinance—even without changing homes—can be the better move.
When to consider refinancing:
- You need to consolidate high-interest debt.
- You’re planning major expenses (renovations, tuition, investments).
- Your property value has increased significantly.
- You’re looking to extend amortization and reduce payments.
Use our mortgage affordability calculator or request a custom scenario to see if the math makes sense for your situation.
Self-Employed or Have Irregular Income? You Have Options
Self-employed borrowers in BC and Alberta often feel penalized by big banks during renewals. If your tax-efficient income doesn’t meet traditional underwriting, you may face a frustrating renewal process.
But you’re not out of options. At Sandhu & Sran Mortgages, we work with lenders who accept:
- Business bank statements
- Stated income with proof of ownership
- Notice of Assessments from past years
Check our self-employed and private mortgage guide to see how alternative lenders may support your renewal—even if traditional lenders won’t.
Special Scenarios We’ve Handled in 2025 So Far
- Clients Upsizing in Surrey
A family renewing their 2020 mortgage wanted to upgrade from a townhome to a detached home. Instead of accepting their renewal, we secured a bridge mortgage and restructured their loan with a better amortization. Learn how construction and new home financing options can align with renewal timing.
- Farm Property Owners in Calgary
Renewing a specialized farm mortgage? Consider equity release to reinvest in land or equipment. We helped a Calgary client transition from a rigid farm loan to a more flexible private farm mortgage with better seasonal payment terms.
- Debt Consolidation in Abbotsford
A couple with multiple high-interest loans used their renewal moment to consolidate into one low-rate mortgage. With over $800/month saved, they’re now rebuilding credit and planning their next investment. Our line of credit options can help if you need flexible post-renewal funding.
Renewal FAQs: What Clients Are Asking in 2025
Q1: Can I renew my mortgage early in 2025?
Yes, many lenders allow early renewals within 120–180 days of maturity. This gives you a chance to lock in rates if you anticipate an increase later in the year.
Q2: Will I have to requalify with my lender at renewal?
Only if you’re increasing the loan amount or switching lenders. Otherwise, standard renewals with the same lender typically don’t require a new stress test.
Q3: What if my credit score dropped since I got my last mortgage?
You may still qualify, especially through a broker with access to private lending or B-lender options. The key is early planning.
Q4: How do I decide between fixed and variable at renewal?
This depends on your risk tolerance and term flexibility. Use our mortgage calculators or speak with our brokers to compare options tailored to your situation.
Next Steps: Your Personalized Renewal Plan
Here’s how to take control of your mortgage renewal before rates shift again:
- Review your renewal letter from your lender (usually sent 3–4 months before maturity).
- Schedule a no-cost review with a mortgage broker.
- Run side-by-side comparisons of renewal, refinance, or transfer options.
- Ask about timing strategies if you’re considering upsizing or investment property plans.
- Request a rate hold—most lenders offer this for up to 120 days, locking in your deal while you explore.
If you’re unsure what your renewal options are—or if you’re eligible for better ones—we’re here to help. From Surrey to Calgary, our team has helped hundreds of Canadians turn mortgage stress into financial opportunity.
Final Word
Mortgage renewals in 2025 are more than a checkbox—they’re a chance to reassess your financial position and reshape your future. Whether you’re focused on savings, flexibility, or equity access, your next term should work for you—not just your lender.
Let’s make this renewal your best mortgage move yet.