April 22, 2025
Calgary homeowners are heading into a tough mortgage renewal season in 2025. With over $400 billion in Canadian mortgages set to renew this year, many borrowers who locked in at historically low rates in 2020–2021 are now facing the reality of significantly higher payments. For some, this could mean hundreds—if not thousands—more per month, and the banks aren’t offering many breaks. Lenders are stress-testing borrowers at current rates, and if you don't qualify, you could be forced into less favourable terms, or even private lending.
Renewals aren’t automatic rubber stamps anymore. Lenders are scrutinizing debt loads, income stability, and credit scores more than ever. If your financial picture has changed—maybe due to inflation, job shifts, or increased debt—you may not qualify with your current lender. This could put you in the hands of B lenders or private mortgage options, which come with higher rates and fees. Ignoring the renewal process or waiting until the last minute is risky; many borrowers will be caught off guard.
The bottom line: prepare early. Six months out from your renewal, start reviewing your finances. Talk to a broker to see where you stand and what your realistic options are. If you're struggling with affordability, look into debt consolidation or extending your amortization—but know that these are band-aids, not solutions. The landscape has changed, and so must your approach.
Source: Absolute Mortgage Team