Stress Test Your next mortgage renewal could be a shocker. Here’s what to do
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Nov 12, 2025 Victor Tran, a Toronto-based licensed mortgage agent, shares insights on navigating today's challenging mortgage landscape. With rising interest rates, he discusses strategies for renewing mortgages and the importance of comparing lenders to avoid shocking payment increases. He emphasizes the trend of first-time buyers opting for fixed rates to maintain budget stability. Additionally, Tran advises homeowners to start shopping well ahead of their renewal dates and warns against the pitfalls of procrastination in this crucial financial decision.
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Millennial Buyer Who Rented Out Her Condo
- Mary bought a 700 sq ft condo in 2020 with a 20% down payment and a 2.05% five-year fixed mortgage.
- Her monthly carrying costs were about $3,200 including condo fees, and renting it out left her running a $600 monthly deficit.
Renting Out Changed The Return And Outlook
- After COVID Mary rented the condo for $2,600 and felt the financial and emotional strain of subsidizing tenants.
- She’s now facing a renewal that could raise her mortgage by about $700 a month and is considering selling or switching to a variable term.
Current Rate Range Is Tight And Uncertain
- Victor notes fixed and variable mortgage rates are currently mostly in the low- to mid-4% range, with some high-3% offers that carry conditions.
- He cautions rates are higher than pandemic lows but lower than recent peaks, creating uncertainty for renewals.