Mortgage Renewals in 2025: Why This Year’s Midpoint Pause Is a Strategic Moment

As the Bank of Canada holds its key interest rate steady at 2.75% in June 2025, many Canadian homeowners find themselves at a crossroads. With more than a million mortgages set to renew this year—and the potential for additional rate cuts looming—this is not the year to auto-renew without asking questions.

If your mortgage is up for renewal in British Columbia or Alberta, here’s why a strategic review of your options could make a significant financial difference.

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What the Rate Pause Really Means for Borrowers

The BoC’s current pause doesn’t mean rates won’t move again. In fact, many economists expect at least one more quarter-point cut before year-end. But for now, the lending environment is stable enough for borrowers to plan—but volatile enough that the wrong decision could cost thousands.

That’s why experts suggest reviewing renewal letters carefully and considering whether a shorter fixed term, a variable rate, or even a mortgage refinance may be more appropriate than simply renewing your existing contract.

If your current rate was locked in during the peak of 2022–2023, this is a moment to explore whether a switch could significantly lower your monthly payments—especially when paired with tools like a mortgage calculator to assess affordability under new terms.

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Renewal vs. Refinance: Know the Difference

At renewal, most borrowers stick with their current lender. But that may not be the best choice—especially if:

• You’ve built significant home equity
• Your credit profile has improved
• You want to consolidate higher-interest debt
• You’re planning renovations or need flexible cash access

In such cases, a mortgage refinance might unlock better rates, extend amortization, or even allow you to access a home equity line of credit.

Even a small rate reduction can save thousands over time—making the math of early switching, even with a penalty, worth a second look.

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For Self-Employed or Non-Traditional Borrowers: You’re Not Stuck

If you're self-employed, gig-based, or report income in a tax-efficient way, traditional lenders may not offer the most competitive terms during renewal.

But that doesn't mean you're without options. Brokers who specialize in private mortgages or self-employed lending can access lenders who understand business income, bank statement deposits, and irregular cash flow patterns—critical for entrepreneurs across BC and Alberta.

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Planning for More Than Just a Renewal

Mortgage renewals can also be part of a broader plan. For example:

• A homeowner in Abbotsford used their renewal to shift into a rental-focused investment property mortgage strategy.
• A family in Surrey bundled high-interest consumer debt into one payment using their renewal moment to restructure.
• A farming household in Calgary leveraged their renewal to transition into a more seasonal farm mortgage repayment plan.

All of these moves were possible by pausing at renewal—not just accepting the status quo.

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Pro Tips for Renewing Smart in 2025

• Start early: Many lenders allow early renewal 120 days before term-end.
• Ask for a rate hold: Secure a rate while shopping alternatives.
• Run the numbers: Use a mortgage affordability calculator or speak to a mortgage broker.
• Consider your goals: Are you downsizing, upsizing, or staying put?
• Don’t ignore private options: These are especially useful in transitional scenarios like credit recovery, divorce, or self-employment.

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The Bottom Line

In a year of cautious optimism and subtle market shifts, the 2025 mortgage renewal window isn’t just a formality—it’s a financial opportunity. With rising home values, lower inflation, and potential rate cuts on the horizon, this is the ideal moment to reassess, restructure, and set up your mortgage to match your life—not just your lender’s offer.

If you’re in British Columbia or Alberta, speak with a broker who understands the evolving landscape—and can offer more than one path forward.

This blog is based on insights from Sandhu & Sran Mortgages, a brokerage helping clients across Abbotsford, Surrey, Edmonton, and beyond find custom mortgage solutions for changing times.