As many homeowners prepare to renew their mortgage, one question keeps coming up: what will the real impact on their budget be? In interviews given to La Presse, Le Devoir, and Les Affaires, our mortgage brokers Véronique Caron and Jean-Sébastien Gilbert share their observations and suggest strategies to better navigate this period.
A shock… softer than expected for some
Although payment increases are indeed happening, they may turn out to be less pronounced than what many borrowers had feared. In 2025, the average increase in monthly payments is expected to be around 8%, a level lower than what many borrowers had anticipated.
That said, for many households, even an increase of a few hundred dollars can make a real difference in their budget. That’s why many are exploring different strategies to limit the impact.
Extended amortization: a tool to use with caution
One of the most popular strategies is to extend the mortgage amortization period, sometimes up to 30 years. This solution can provide some breathing room by reducing monthly payments, which is especially helpful for those looking to preserve their ability to save or cope with a significant interest rate increase.
While this option is practical in the short term, it comes with certain implications. The longer the amortization period, the larger the portion of payments that goes toward interest rather than paying down the principal. It is therefore a tool that must be used with caution, ideally as a temporary measure.
Some borrowers choose to switch to biweekly payments or make a lump-sum payment after a certain period, which can help shorten the amortization back to 25 or 26 years, while still maintaining a safety buffer at the beginning.
Être bien entouré pour mieux décider
Renewing your mortgage today is no longer just about choosing the right rate. A Multi-Prêts mortgage broker can help you take a step back. Whether it’s adjusting your payment schedule, better understanding the financial impacts, or securing your future, one of our experts can guide you.