Christopher Liew (CTV News) recently flagged something most Canadians aren’t prepared for, and it’s worth paying attention to.

This year roughly one million mortgages will come up for renewal. Many of those homeowners locked in rates during COVID when borrowing was cheap. Now they’re facing payments that could jump 15% to 20%, even with rates below their 2023 peaks.

The timing couldn’t be worse.

Canada’s average retirement age is projected to hit 65.4 in 2027. That means more Canadians are entering retirement still carrying mortgage debt. The old assumption, that you’d own your home free and clear before you stopped working, no longer holds.

I’ve worked with Atlantic Canadian homeowners for over 18 years. I’ve seen what happens when someone hits renewal without a plan. The stress is real, the options feel limited, and the stakes are even higher when retirement is close.

The Numbers Tell a Hard Story

The data paints a clear picture.

Canadian household debt hit 174.9% of disposable income by Q2 2025. For every dollar you earn, you owe $1.75. That’s the second-highest debt load among 34 OECD countries.

Savings are down. Debt is up. And now mortgage payments are climbing.

Bank of Canada analysis shows that homeowners with five-year fixed-rate contracts renewing in 2025 or 2026 are looking at payment increases of 15% to 20%. At $2,000 a month, that’s an extra $300 to $400 every month.

On a fixed income or close to retirement, that kind of increase changes your whole financial picture.

Why This Hits Near-Retirees Harder

You bought your home when rates were low, qualified at those rates, and the stress test added a 2% buffer to ensure you could handle an increase.

That buffer worked. You can still afford your home.

What the stress test didn’t account for is that everything else went up too.

Insurance premiums, property taxes, groceries, gas. If you’re carrying other debt, those payments stayed the same or grew.

Now your mortgage renews at a higher rate and that buffer feels thin.

Retirement compounds the pressure. Income drops, flexibility shrinks, and the margin for error nearly disappears.

The Decisions You Made During Low Rates

When rates were at historic lows, many homeowners made financial moves that made complete sense at the time.

You bought a vehicle, took on a line of credit, helped a kid through school, renovated the kitchen.

None of those decisions were wrong. But they added to your monthly obligations.

Here’s a number worth knowing: every $500 in monthly debt payments reduces your mortgage approval power by $80,000 to $100,000. That math works in reverse when you’re managing cash flow in retirement.

A $500 car loan plus $300 in credit card payments is $800 a month that isn’t going toward your mortgage or retirement savings.

What Liew Got Right: Test Your New Payment Against Retirement Income

Liew’s advice is straightforward: before your renewal hits, run the numbers.

Take your new mortgage payment and stack it against your projected retirement income, not your current salary, but what you’ll actually bring in after you stop working.

If it eats up more than 35% of your gross income, you’re in tight territory. Past 40%, you need a different plan.

This isn’t about fear. It’s about clarity.

At 60 days before renewal, your options are already narrowing. At four months out, you still have room to move.

Your Options When the Payment Doesn’t Fit

If the new payment doesn’t fit your retirement budget, three options are worth considering.

Option 1: Extend Your Timeline

Spreading your mortgage over a longer period, from 20 years to 25 or 30, lowers your monthly payment.

You’ll pay more interest over the life of the loan. But if the goal is to stay in your home through retirement without financial strain, the breathing room is worth it.

Option 2: Pay Down the Balance Aggressively

If you have savings or investments outside your retirement accounts, a lump-sum payment toward your principal can meaningfully lower your monthly costs.

Reducing your balance by $50,000 or $100,000 makes a real dent. You trade some liquidity for stability.

Option 3: Consolidate Other Debt

High-interest credit card or line of credit debt can be rolled into your mortgage, freeing up monthly cash flow.

Your mortgage rate is lower than your credit card rate. One consolidated payment at a lower rate simplifies your budget and reduces what you owe each month.

The Proactive Move Most People Skip

The advice I give every client facing renewal is simple: don’t wait for the bank’s letter.

Banks send renewal offers 30 to 60 days before your term ends. At that point, your timeline is tight. You take what they offer or scramble to find something better.

Four months before renewal, you can lock in a rate and shop the full lending market, comparing 20-plus lenders, negotiating terms, and structuring the deal around your retirement plan.

I’ve watched clients save thousands by moving early. I’ve also watched people lose good options because they waited too long.

Why This Matters Beyond Your Mortgage

The mortgage renewal wave isn’t a housing issue. It’s a retirement security issue.

When near-retirees carry mortgage debt into their 60s and 70s, retirement looks different. Some delay it. Some return to work part-time. Some lean more heavily on government programs.

Those effects ripple outward to families, labor markets, and the broader economy.

This isn’t about blame. People made reasonable decisions with the information they had. Rates were low, borrowing was cheap, and homeownership was the goal.

The environment shifted, and the strategy has to shift with it.

What You Can Do Right Now

If you’re within two years of retirement and a mortgage renewal is coming in the next 12 to 24 months, here’s a clear action plan.

Step 1: Calculate Your New Payment

Find out exactly what your payment will be at current rates. Don’t estimate. Get the actual number.

Step 2: Compare It to Your Retirement Income

Map your pension, CPP, OAS, and any other retirement income against the new payment. Does it fit?

Step 3: Review Your Other Debt

List every monthly payment you’re carrying: car loans, credit cards, lines of credit. Total it up.

Step 4: Talk to a Mortgage Broker

Reach out four months before renewal. A good broker will lock in rates, shop multiple lenders, and surface options you didn’t know existed.

Step 5: Make a Decision

Extend your timeline, pay down the balance, consolidate debt, or hold your current course. Whatever you choose, make it a deliberate decision, not a default.

The Reality Check

Most people can’t say with confidence exactly when they’ll retire or how much income they’ll have.

That uncertainty gets harder to manage when your mortgage payment spikes right as you’re planning to leave the workforce.

The renewal wave is real. The squeeze on near-retirees is real. The good news is the solutions are real too.

You just have to act before that letter arrives.

If you have a renewal coming in the next year and aren’t sure how it fits your retirement plan, let’s talk. We’ll run the numbers, look at your options, and build a plan that works for your timeline.

Retiring with a mortgage doesn’t have to mean retiring with stress.