{"id":37612,"date":"2025-06-03T06:00:00","date_gmt":"2025-06-03T10:00:00","guid":{"rendered":"https:\/\/www.zoocasa.com\/blog\/?p=37612"},"modified":"2025-06-12T08:44:48","modified_gmt":"2025-06-12T12:44:48","slug":"renewing-mortgage-in-2025","status":"publish","type":"post","link":"https:\/\/www.zoocasa.com\/blog\/renewing-mortgage-in-2025\/","title":{"rendered":"Renewing Your Mortgage in 2025: How Much More You\u2019ll Pay, Plus 5 Things to Consider"},"content":{"rendered":"\n

Canada\u2019s housing market is cooling, and for the 6 in 10 homeowners nearing the end of their term, that could spell trouble. Prices are down across major regions like Toronto<\/a>, Vancouver<\/a>, Fraser Valley, and Kitchener-<\/a>Waterloo<\/a>, with Toronto\u2019s MLS Home Price Index falling 4.4% since December and Vancouver down 1.8% year-over-year, as reported by RBC<\/a>. Even Calgary posted its first annual price drop in five years.<\/p>\n\n\n\n

As inventory rises and buyers gain leverage, home values are expected to keep sliding. That\u2019s good news for shoppers, but for current owners, it could mean less equity, tougher refinancing, and limited options when renewing or switching to a new lender. In some cases, homeowners with small down payments could even face negative equity. If your mortgage is due for renewal soon, understanding how your local market has shifted is more important than ever.<\/p>\n\n\n\n

Zoocasa analyzed average home prices from 26 major markets in June 2020 to estimate how much more Canadians would pay when renewing their mortgages at today\u2019s higher interest rates. The comparison uses a 5-year fixed rate of 4.94% from 2020 and a current rate of 6.49%, assuming a 10% down payment with CMHC insurance included. Monthly mortgage payments were calculated using the CMHC Mortgage Calculator, while remaining balances and projected second-term payments were determined with the TD Mortgage Calculator. <\/p>\n\n\n\n

Of the 26 real estate markets analyzed, Fraser Valley saw the most significant jump in mortgage payments at renewal. Despite having a lower average home price than major cities like Toronto or Vancouver, the region is experiencing the most considerable annual increase in mortgage costs. That\u2019s because Fraser Valley started with a lower monthly payment ($4,182), so when rates increased, even a $208 rise per month translated into a nearly 5% increase. Over a year, that\u2019s an extra $2,496 out of pocket.  <\/p>\n\n\n\n

In Greater Vancouver, the average mortgage of $973,808 results in a monthly payment increase of $132, from $5,630 to $5,762, totaling $1,584 more per year. And while the increase isn\u2019t as steep as Fraser Valley\u2019s<\/a>, the higher loan amount means Vancouverites are still carrying over $778,836 in mortgage debt after 10 years.<\/p>\n\n\n