More than 1.2 million mortgages in Canada will come to term in 2025 and it’s going to bring about some major surprises for Canadian homeowners. These homeowners have been enjoying the benefits of lower payments since 2020 when they locked in their mortgage at historically low rates during COVID, but the ride will be coming to an end at some point this calendar year. When it stops, they’ll not only be disappointed the ride is over, but they’ll also be surprised, and in some cases, scrambling to adjust to their new mortgage rate and payment amounts. 

It's not just people’s mortgage payment that’s going up since 2020, it’s their property taxes, increased costs of food and fuel and overall rise in the costs of living. The increases directly impact a families bottom line and some families will be in a position to make tough decisions about whether they’ll be staying in their current home or needing to pack things up and find a new home where the costs will be more manageable and less stressful.

85% of the mortgages coming to term this year were contracted when interest rates were at or below 1%. This means more than 1 million Canadian homeowners will face significantly higher interest rates despite the consistent rate cuts the Bank of Canada has been making since spring of 2024. 

The payment shock that’s waiting for Canadians will be challenging for a lot of families and creative solutions will be needed given people’s monthly mortgage costs will increase by hundreds and possibly thousands of dollars depending on the value of their mortgage. 

So what options do you have? The first thing to consider is meeting with your mortgage advisor, broker or financial partner. From there you’ll have valuable information and possible solutions like extending your amortization or changing your payment schedule. 

Next would be to consider if selling your home and downsizing is in your best interests for the sake of your overall well-being and peace of mind. We’ve helped many families navigate this decision and can relate to how tough it is because we downsized ourselves due to increased living costs and needing to give ourselves some breathing room. 

Nobody likes a bad surprise but the reality is there will be a lot of surprises this year for Canadian homeowners. We’re here to help you navigate the changes and work with you so you feel heard and understood. We’re on your team. 

People First. Homes Second.

Team Zimmerman

Garrett & Chelsea Zimmerman

(403) 506-5795