Mortgage Blog

My Mortgage Is Coming Up for Renewal — Can I Still Afford the Payment, and What Are My Options?

June 25, 2026 | Posted by: Patricia McKean - Cochrane and Airdrie Mortgage Broker

Our mortgage team has helped hundreds of homeowners across Calgary, Airdrie, Cochrane, Rocky View County, and surrounding communities navigate mortgage renewals with confidence. Every homeowner's situation is different, and our goal is to help you understand your options before you sign your renewal.

If your mortgage is coming up for renewal and you're worried about your monthly payment, you're not alone. We've had more conversations about renewal affordability over the past year than almost any other mortgage topic.

Many homeowners who locked into historically low interest rates are now facing significantly higher renewal rates. That has created one big question around countless kitchen tables:

Can we still afford this?

The good news is that a renewal doesn't have to be something that happens to you. It can be an opportunity to review your finances, compare lenders, and choose a strategy that fits your family's budget.

What You'll Learn

• Why so many Canadians are worried about mortgage renewals
• What happens when your mortgage renews
• How to estimate your new monthly payment
• What your options are if payments increase
• Fixed vs. variable: Which makes sense today?
• A Calgary-area renewal case study
• Mortgage renewal glossary
• Frequently asked questions

Why Renewal Affordability Is the Biggest Mortgage Question Right Now

Mortgage renewals have become one of the biggest financial concerns for Canadian homeowners.

Many borrowers secured mortgage rates between 1.5% and 2.5% several years ago. As those mortgages mature, today's rates are considerably higher, meaning monthly payments often increase, even if the mortgage balance has gone down.

Recent national housing research found that mortgage payment concerns remain one of the leading financial worries for homeowners. Although anxiety has eased compared with last year, many borrowers renewing their mortgage are still seeing noticeable increases in their monthly payments.

That means planning ahead has never been more important.

How Much Could Your Payment Increase?

Every mortgage is different, but here's a simple example.

Suppose you have:

• Mortgage balance: $450,000
• Remaining amortization: 20 years

If your previous rate was around 2.00%, your monthly payment would have been approximately $2,275.

If your renewal rate increases to approximately 4.50%, your payment could rise to roughly $2,845.

That's an increase of about $570 every month, or nearly $6,800 per year.

For many families, that's the difference between comfortably managing expenses and having to rethink the household budget.

What Are Your Options If the New Payment Doesn't Fit Your Budget?

Fortunately, you usually have more choices than you think.

1. Shop Around Before You Renew

One of the biggest mistakes homeowners make is signing their lender's renewal offer without comparing other options.

Different lenders may offer different rates, products, and features. Even a small rate difference can save thousands of dollars over the next mortgage term.

2. Switch Lenders

Many homeowners still believe they're required to stay with their current lender.

That isn't true.

For many uninsured mortgages, switching lenders at renewal has become much simpler than it was in previous years.

If another lender offers a better solution, switching could reduce your costs without requiring a complete refinance.

3. Adjust Your Amortization

If cash flow has become tight, extending your remaining amortization may lower your monthly payment.

Although you'll generally pay more interest over time, improving monthly affordability can be the right short-term solution for some families.

4. Consider Debt Consolidation

If you're carrying high-interest credit card balances, vehicle loans, or unsecured debt, renewal may be a good time to review whether debt consolidation makes sense.

Reducing multiple high-interest payments into one mortgage payment may improve monthly cash flow.

This strategy isn't right for everyone, but it's worth reviewing.

5. Review Your Household Budget

Sometimes the best solution isn't changing the mortgage.

A simple review of monthly spending may identify opportunities to offset higher mortgage payments without making major lifestyle changes.

Fixed or Variable: Which Is Better at Renewal?

This is one of the most common questions we hear.

The reality is that nobody can accurately predict where interest rates will go over the next three to five years.

Instead of trying to predict the market, we encourage clients to think about their comfort level.

A fixed-rate mortgage may be a better fit if:

• You prefer stable monthly payments.
• You have a strict household budget.
• You value certainty.

A variable-rate mortgage may suit homeowners who:

• Are comfortable with changing interest rates.
• Have flexibility in their monthly budget.
• Can tolerate short-term payment fluctuations.

The best choice isn't always the lowest rate.

It's the mortgage you'll feel comfortable living with.

Case Study: Calgary Family Faces a Renewal

A family in northwest Calgary contacted us six months before their mortgage renewal.

Their situation looked like this:

• Remaining mortgage: $510,000
• Previous rate: 1.94%
• Renewal offer: 4.59%

Their lender's renewal would have increased their monthly payment by approximately $620.

Instead of automatically signing the offer, we reviewed several lenders.

After comparing products, discussing payment options, and adjusting their mortgage strategy, we found a solution that better fit their monthly budget while keeping their long-term goals on track.

Every situation is different, but this illustrates why comparing your options before renewal can make a meaningful financial difference.

Glossary

• Amortization - The total length of time it takes to repay your mortgage.
• Mortgage Renewal - The process of signing a new mortgage term when your existing term ends.
• Fixed Rate - An interest rate that stays the same throughout your mortgage term.
• Variable Rate - An interest rate that may change as market conditions change.
• Mortgage Term - The length of your mortgage agreement before renewal.
• Debt Consolidation - Combining multiple debts into one loan to simplify payments.
• Prepayment Privileges - Features that allow you to pay extra toward your mortgage without penalties.
• Portability - The ability to transfer your mortgage to another property under certain conditions.

Frequently Asked Questions

Should I renew with my current lender?
Not necessarily. It's worth comparing lenders before making your decision.

How early should I start planning my renewal?
Ideally, six months before your renewal date. This provides enough time to compare options without feeling rushed.

Can I switch lenders when I renew?
Yes. Many homeowners can switch lenders at renewal, and doing so may result in better rates or more flexible mortgage features.

Should I choose a fixed or variable rate?
It depends on your financial goals, budget, and comfort with changing interest rates. There is no one-size-fits-all answer.

Can I lower my monthly payment?
Possibly. Depending on your situation, extending your amortization, changing lenders, or restructuring your mortgage may improve affordability.

Let's Review Your Renewal Before You Sign

If your mortgage is coming up for renewal, don't assume your lender's first offer is your only option.

We'll review your mortgage, compare available lenders, explain your choices in plain language, and help you decide on a solution that fits your financial goals, at no cost and with no obligation.

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