Zoocasa
Sold Prices
Map
Market Insights
  • Blog Home
  • For Buyers
  • For Sellers
  • Real Estate News
  • Mortgage News in Canada
  • Free Guides (PDF)
  • Real Estate Infographics
Zoocasa
  • Blog Home
  • For Buyers
  • For Sellers
  • Real Estate News
  • Mortgage News in Canada
  • Free Guides (PDF)
  • Real Estate Infographics
Home Affordability

Renewing Your Mortgage This Year? Here’s How Much More You Can Expect to Pay Monthly

Daniel Crook by Daniel Crook
October 31, 2023
in Affordability, Canada, Mortgages
Reading Time: 4 mins read
The front porch of a house.
Share
Tweet
Share
0 Shares

In the ever-evolving landscape of personal finance, few decisions hold as much weight as those concerning our homes. For many, a mortgage is the cornerstone of their financial journey, representing a long-term commitment to both a property and a financial institution. However, as economic tides ebb and flow, so do the opportunities that come with them. In terms of renewing your mortgage, this can include taking advantage of lower rates or changing your amortization schedule. However, with mortgage rates currently at a 15-year high, renewing can be stressful.

Enjoying our content? Subscribe to our free weekly newsletter to get real estate market insights, news, and reports straight to your inbox.

  • Read: Bank of Canada Holds Steady: No Change to Rates Amid Economic Landscape

So, if your mortgage is up for renewal, how much are you likely to end up paying? To find out, we analyzed mortgage payments on homes purchased in 2020 and 2018 to learn how much buyers have left to repay, and what their payments may be when they renew. 

2020 Buyers Hit Hardest With 4% Rate Increase Affecting Renewal

2020 buyers that are up for renewal will likely be impacted by higher rates. One of the best available rates in September 2020 was 1.64% – renewing now means paying interest at a rate of 5.24%. Additionally, 2020 buyers have had two fewer years to make payments towards their principal, meaning there’s greater interest on top of the larger percentage of the original home price. The average rate in September 2018 was 3.09%, so although rates have increased, the disparity isn’t quite as significant as those that locked in 2020 rates.

Vancouver buyers, for example, may be paying the most out of the 2020 buyers. Anyone who bought a home for the average price in September 2020 of $955,000 may have paid off a little under $100,000 towards the principal, with average monthly mortgage payments of $3,737 for the past three years. Anyone renewing now will be paying an average of $4,946 monthly, nearly $1,200 more, higher than any other city on our list. 2018 Vancouver buyers are the only group on our list paying over $4,000 a month, with an average monthly mortgage payment of $4,839, $324 higher than their original payment of $4,515. 

Toronto is the only other city where 2020 homebuyers will be paying over $4,000 on their average mortgage payments. Payments will now amount to an average of $4,499 a month, $1101 more than their original payments. 2018 buyers will only see an increase of $257 on their average monthly payments, going from $3,516 to $3,773. 

  • Read: This is How Long it Would Take to Save Up a Down Payment in Canada’s Most Affordable Cities

Monthly Mortgage Payments Vary Across Canada

The smaller the mortgage amount, the more affordable the monthly payments are, like for the most affordable cities on our list: Moncton and Saint John. 2020 home buyers in Saint John may see their mortgage payments go from $794 a month to $1,047, an increase of $253. 2018 buyers in the same city may only be paying $55 more on their monthly mortgage payments, going from $828 to $883. 

Moncton homeowners who bought in 2020 may be paying an extra $262, with their monthly mortgage payments now at $1,080, while those who bought in 2018 may only be paying an extra $53, with their monthly payments hitting around $842. Anyone who bought a home in 2018 in Quebec, St. John’s, Winnipeg or Regina may have an increase of less than $100 on their average monthly mortgage payments if they were to renew now. 

Questions about renewals or real estate conditions in your area? Give us a call! Our real estate experts are here to help. 

Planning to move soon?
Sign up for a free Consultation
Previous Post

How investing your savings can help you buy a home sooner

Next Post

Phrogging: What You Need to Know

Daniel Crook

Daniel Crook

Daniel Crook is a Content Marketing Specialist at Zoocasa. Daniel’s insights provide home buyers and sellers with knowledge of local and national markets to aid them in their real estate pursuits. Daniel covers a multitude of topics, ranging from mortgages to local market trends, as well as data-driven reports uncovering national trends. His work has been featured in outlets such as BNN Bloomberg, CTV News, the National Post and the Globe and Mail. You can find all his latest insights on the Zoocasa blog.

Related Posts

Windsor, ON city skyline
Canada

10 Years of Rising Mortgage Payments: The Canadian Cities Hit Hardest

July 9, 2025
Condo balcony overlooking the water
Affordability Reports

Canada’s Hottest Condo Market of the Last Decade Might Surprise You (It’s Not Toronto or Vancouver)

July 7, 2025
A woman sitting in the driver's seat of a car
Affordability

Trade Your New Car Budget for a Down Payment in These Affordable U.S. Cities

July 3, 2025

Blog Search

No Result
View All Result

Newsletter Sign-up

Join a community of 130,000+ subscribers. Don't miss important real estate news, market data, and buying and selling tips.

Recent Articles

toronto skyline from ontario place

6 Ways Toronto Real Estate Transformed Over the Past 10 Years

July 14, 2025

10 Brick Homes Across the U.S. Featuring the Most Popular Brick Colors

July 13, 2025
A lake in Alberta, surrounded by towering mountains and lush pine forests.

6 Lakes Close to Edmonton That Locals Love for Escapes and Retreats 

July 12, 2025
A blue sofa in a room featuring a white wall and blue accent walls, creating a cohesive color scheme.

Design Trends 10 Years Ago: What Defined Mid-2010s Homes 

July 11, 2025

Featured Listings

6 Best Cities for Affordable Luxury Homes in Canada Under $1M

July 10, 2025

5 Canadian Cottage Regions That Make the Perfect U.S. Buyer Getaway 

June 15, 2025

From Skyline Views to Private Escapes: 5 Luxe Calgary Homes for Sale

June 10, 2025

What it Means When a Home is Listed for $1

June 7, 2025
first-time home buyer programs and rebates

Social Media

250 The Esplanade Suite 408 Toronto, ON M5A 4J5

Stay Connected

  • Blog Home
  • For Buyers
  • For Sellers
  • Real Estate News
  • Mortgage News in Canada
  • Free Guides (PDF)
  • Real Estate Infographics
No Result
View All Result

Zoocasa © 2007–2022. The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA.