When a mortgage term ends, homeowners enter a crucial phase known as renewal. While it may look like a routine formality, the stakes are higher in 2025.

Mortgage renewal is your chance to pause, review your finances and explore better opportunities. However, it comes with changing mortgage rates and stricter lending rules.

Fortunately, with the right moves, you can lower payments or even refinance to meet new goals. The difference lies in knowing how to negotiate from the start.

A New View of What Mortgage Renewal Means

Mortgage renewal is more than signing fresh papers when a term ends. Think of it as a doorway. On one side, your current lender is waiting with an offer. On the other side, the entire market is open to you.

A renewal gives you power to choose. You can stay or you can search for better terms. This decision shapes how much you pay every month and how quickly you build equity.

Why 2025 Is a Unique Year for Renewals

When compared to other years, mortgage renewal in 2025 feels different. Roughly 1.2 million mortgages are coming due, which makes this one of the busiest renewal years in Canada’s history.

Most of these loans are five-year fixed mortgages. Payments are also expected to rise by 15% to 20%. This means that families who locked in at low rates in 2020 will now face much higher costs.

The Bank of Canada’s decision to cut its policy rate to 2.50% on September 17, 2025, adds another layer. A lower policy rate usually eases borrowing costs, and over time, it could help pull mortgage rates down.

However, the effect is not instant. Each lender adjusts slowly and remains cautious, especially when dealing with large volumes of renewals. For homeowners, this means timing and negotiation matter more than ever.

Key Steps to Negotiate Better Mortgage Renewal Rates

To get the best outcome, follow these steps:

  • Start early: Reach out to your lender at least four months prior to your term’s end. Ask for their renewal offer. However, do not feel pressured to accept it quickly. The extra time provides more space to compare and negotiate.
  • Shop around for mortgage rates: Did you know that even a difference of 0.25% in mortgage rates can save thousands over the next few years? So, always check what other lenders are offering. Collect several quotes and use them as leverage.
  • Think about a refinance: If your household needs have changed, refinancing may help. It can reduce monthly payments and combine debt into one loan. A refinance can also unlock equity for home upgrades.
  • Work with a mortgage broker: A broker negotiates daily, understands each lender’s rules, and can spot hidden opportunities. They simplify the process and help secure terms that truly fit your goals.

Partner With Northwood Mortgage for Your Renewal

Northwood Mortgage is not a lender. We are brokers, which means our focus is entirely on you, your goals, and finding the best mortgage solutions. During mortgage renewal, this makes a big difference.

We start by reviewing your current mortgage in detail, including payments, interest rates, term, and long-term plans. Next, multiple lenders are compared to find mortgage rates and competitive offers.

Our team also provides guidance on whether a refinance could be the better move than a simple renewal. Once options are clear, we handle the negotiations with the lender. Our experience ensures you get favourable terms without stress.

Talk to us today at 888-495-4825 or contact us online to compare mortgage rates, negotiate smarter, and make your renewal work for you.