Renewing your mortgage in 2022 or 2023

By Connie Graham and Briana Hennigan |

Best Mortgage Broker Edmonton

If you have a mortgage renewal coming up in 2022 or 2023, you should be prepared to renew at a higher interest rate and higher mortgage payment than you may be currently paying.

Here are some options for you to consider:

Remember that Edmonton boasts some of the most affordable living costs in all of Canada.  It is still going to hurt when your interest rate on your mortgage increases, but if you plan ahead, it may hurt a little less.

At ETown Mortgage we can help you to plan ahead.  Book a Call

  1. Increase your current mortgage payment now to reflect what your new payment will be based on current rates.

    Your new payment will be based on your remaining amortization and your mortgage balance.  An easy way to estimate* this increase is your payment will increase by approximately $52 per 1.00% increase in interest rate per $100,000 of the mortgage balance you owe. For Example:

    • $400,000 mortgage balance

    • The current rate is 2.59% and your new mortgage rate at renewal will be 4.59% (a difference of 2.00%)

    • $52 x 2 (% increase) x 4 (per $100,000 mortgage owed) = *$416 per month.

  2. Think very carefully about taking on any new debt.  Consider postponing that new car purchase or taking that big vacation.  You may regret having an $800/month vehicle payment when your mortgage payment increases.
  3. Focus on paying down any current debt, now.  Don’t wait.
  4. If you have already paid off your debt - good job!  Now you should prioritize and amp up your savings by using your TFSA and automatic transfers.  You may need your savings in the future to supplement your income OR to pay additional lump sum payments on your mortgage.