03/18/2026
If your mortgage renewal is coming up, you might be expecting a payment shock.
Many people are renewing mortgages that were originally around 1.75% and are now closer to 4%.
So the assumption is:
“My payment has to go up.”
But that isn’t always the case.
One thing most people overlook is amortization.
FOR EXAMPLE:
A mortgage with 20 years remaining might have a payment around $2,530/month.
Extend the amortization to 30 years, and the payment could drop to roughly $2,040/month.
That’s nearly $500 per month in relief.
But here’s the key part many homeowners don’t realize:
Extending amortization doesn’t have to be permanent.
Some people extend it simply to create breathing room for a year or two.
Then later, they increase their payments or make lump sum payments to bring the amortization back down quickly.
In other words, amortization can be a temporary tool for managing cash flow.
Check out my recent blogcast for more details.
Mortgage renewal Canada: Higher interest rates don’t always mean higher payments. Discover the overlooked factor that can reduce your mortgage payment.
