Renewals · October 31, 2026
By James Park · Verico Paragon MortgagePal Inc. · 5 min read
If you locked in your mortgage five years ago, your renewal letter may show a payment that’s noticeably higher. That jump has a name, payment shock, and the time to deal with it is before the letter arrives, not after.
Here’s the plan I walk Metro Vancouver homeowners through.
Day 120: know your real numbers
- Find your maturity date, remaining balance and remaining amortization on your latest statement.
- Write down your current payment and what your budget can comfortably carry each month.
- Note any changes since you last qualified: new income, a new car loan, a growing family.
Day 90: get the options side by side
Your lender’s renewal offer is an opening offer, not the only one. At maturity, many borrowers can move to another lender without a prepayment penalty, though legal or appraisal costs can apply.
- Compare term lengths, fixed versus variable, and prepayment privileges, not just the headline rate.
- Ask whether a longer amortization is available at renewal and what it costs over time.
Day 60: stress-test your budget
- Run the new payment through the renewal calculator.
- Ask: if the payment rose again at the next renewal, would we still be comfortable?
- If the number is tight, it’s far easier to plan changes now than three days before maturity.
Day 30: decide calmly
A renewal signed in a hurry is usually the most expensive one. With your numbers and options in front of you, the decision becomes a choice rather than a reaction.
Why I like starting early in BC
Metro Vancouver balances are larger than in most of Canada, so even a small change in rate or amortization moves the monthly payment a lot. Starting early gives you room to compare, and it gives me time to look at your whole file.
Your next step
If you’d like this applied to your own numbers, start with the renewal check. It takes a few minutes, then a short Form 1A from me as a licensed broker, and I review your file myself.
Frequently Asked Questions
When should I start looking at my renewal?
About four months before your maturity date. Many lenders can hold a rate for a period before closing.
Will moving lenders at renewal cost me a penalty?
At maturity there is usually no prepayment penalty, though legal, appraisal or discharge costs can apply depending on the lenders involved.
Can I change my amortization at renewal?
Sometimes. It depends on the lender, your equity and your file. I can look at it once you’ve completed Form 1A.
Sources
- Renewing your mortgage, Financial Consumer Agency of Canada
- Payment Shock 2026 (idea source), Breaking Bank
James Park, Mortgage Broker · Verico Paragon MortgagePal Inc. · Licence MB503774. General information only; not advice for your situation. Advice is provided only after a short Form 1A and a full application. Any rate is quoted with its APR, term and date, OAC and subject to change.