Do you have a mortgage renewing this year? If so, get ready! As the old saying goes; nothing lasts forever. At our Mortgage Architects office in Hamilton, Ontario, we are seeing this with our own eyes. In 1999 when I first started in the mortgage industry, a five year fixed mortgage was at 11.75%! Rates have been tumbling during my entire mortgage career. In fact, if we only look one year ago, a five year fixed mortgage was at 2.49%. Needless to say, Canadian homeowners have been spoiled and have never encountered a higher rate on renewal.

The good news is that the rate to renew your mortgage is still well below average at between 3.29% and 3.69%. As well if you are just renewing your mortgage you do not have to endure the stress test. It is a straight renewal and you just pick your new mortgage rate.

My concern is for Canadian homeowners who already struggle with cash flow problems and have outside debt. Due to the new mortgage rules, they are at the greatest risk. Not only are mortgage rates higher but they must refinance at the higher 5.14% rate.