Posted On Jun 04, 2024

Is Your Mortgage Renewing Soon? Here's What You Need To Know:

Are you ready for higher mortgage payments if your mortgage is renewing this year or next? Let’s break it down with a simple scenario to help you understand what to expect.

Scenario: 

Original Mortgage Details (2019):
Mortgage Amount: $400,000
Interest Rate: 3% (5-year fixed rate)
Amortization Period: 25 years
Monthly Payment: Approx. $1,893

Current Mortgage Details (2024):
Remaining Mortgage Balance: $342,000
Interest Rate: 5% (5-year fixed rate)
Remaining Amortization Period: 20 years
Monthly Payment: Approx. $2,247

That’s $354 (almost 20%) increase in your monthly payments, rising from $1,893 to $2,247. With the overall cost of living also on the rise, managing your cash flow is more important than ever.

Why Are Payments Increasing?:

Interest rates have gone up in recent years. When your mortgage term ends, you need to renew at the current market rates, leading to higher monthly payments.

Take Control of Your Mortgage Renewal:

Don’t worry, we have options to help you. Don’t wait until the last minute. Contact me to find a solution that fits your financial situation. Remember, cash flow is king, and we’re here to help you manage it.


Danny Bell, AMP
Mortgage Broker
ON Lic #M13001996 | NS Lic #2023-3000662
P. 289-200-9061
W. www.strictly-business.ca 
The Mortgage Centre
Durhammortgage.com Ltd. | Reg #10231