Press ReleaseDate: February 19, 2025
Location: North Vancouver, British Columbia, Canada
Contact: Kevin Lynch, Realtor,
604-307-9448
North Vancouver, BC – In 2025, more than 1.2 million Canadian homeowners are set to renew their mortgages, navigating a dynamic financial environment influenced by recent interest rate adjustments and evolving housing market conditions. By end of 2026, there are over 4 million mortgages coming due.
According to the Canada Mortgage and Housing Corporation (CMHC), these renewals represent a significant portion of the mortgage market, with many homeowners transitioning from historically low interest rates secured in previous years to the current rates. This shift is anticipated to impact household budgets and the broader economy.
In response to economic indicators, the Bank of Canada has implemented a series of interest rate cuts since June 2024, reducing the benchmark rate to 4.25% as of December 2024. These measures aim to alleviate financial pressures on consumers and stimulate economic growth.
However, despite these reductions, many homeowners will still encounter higher rates upon renewal compared to their original mortgage terms. This is due to the unique structure of Canadian mortgages, which often feature variable rates or fixed terms that adjust every four to five years. Consequently, even with recent rate cuts, renewal rates may remain elevated.
To support homeowners in this transition, Canada's banking regulator has introduced measures to facilitate easier switching between lenders upon mortgage renewal. Effective November 21, 2024, borrowers can transfer their mortgage to a new lender without undergoing the previously mandatory stress test, provided there are no changes to the loan amount or amortization period. This policy change is designed to enhance competition among lenders, potentially leading to more favorable rates and terms for consumers.
Financial experts advise homeowners approaching mortgage renewal to proactively engage with their current lenders and explore alternative options to secure the most advantageous terms. Given the substantial number of renewals anticipated this year, lenders are expected to offer competitive rates to retain and attract clients. Homeowners are encouraged to assess their financial situations carefully, consider consulting mortgage professionals, and stay informed about market trends to make decisions that align with their long-term financial goals.
Financial experts advise homeowners approaching mortgage renewal to proactively engage with their current lenders and explore alternative options to secure the most advantageous terms. Given the substantial number of renewals anticipated this year, lenders are expected to offer competitive rates to retain and attract clients. Homeowners are encouraged to assess their financial situations carefully, consider consulting mortgage professionals, and stay informed about market trends to make decisions that align with their long-term financial goals.
About Kevin Lynch:
Kevin Lynch is a leader in the real estate industry with over 35 years of experience. Kevin has extensive experience in the residential sector in Vancouver and the North Shore. He is a great interview and has been featured on many media outlets including TV News (CBC), radio stations, print media, nation wide and local. He is well known in the media for his efforts make a positive impact inside his industry and beyond.
For media inquiries, please contact:
Kevin Lynch, Remax Crest Realty
www.UpperLonsdale.ca
604-307-9448
Note: The information provided in this press release is based on data available as of February 19, 2025. Homeowners are encouraged to consult with financial advisors or mortgage professionals for personalized advice.