Renewing in 2027? Here’s What Saskatchewan Homeowners Need to Know
Homeowners looking ahead to 2027 renewals should begin planning early. The Bank of Canada recently raised its policy rate for the first time since 2023, and additional rate hikes are possible. Fixed rates had already started creeping up before this and may maintain an upward trajectory heading into next year.
A wave of Canadian mortgages is set to renew over the next year and the homeowners who will fare best will be those who plan ahead and review their options instead of simply signing their renewal when it arrives.
Where rates stand heading into 2027
Homeowners who secured low interest rate mortgages in 2022 may face much higher payments when their term expires. Even a relatively small increase in interest rates can affect monthly payments, especially for homeowners with larger mortgages.
The Bank of Canada’s increase in October 2026 was driven by inflation and higher energy prices. The Bank also raised its inflation outlook for 2027, expecting inflation of around 3% throughout most of 2027. This could lead to additional increases to the policy rate and variable rate mortgages.
No one can predict exactly where rates will be at the time of renewal. However, understanding the trend could help homeowners save dramatically over their next term.
What homeowners should know about renewing
Homeowners are not required to renew with their current lenders, especially if the rates or terms are not competitive.
Mortgage rates, terms, prepayment privileges, and other mortgage features vary between lenders and products. Shopping around provides a better opportunity to review options and determine which lender would be the best fit.
An experienced mortgage broker is a great resource for a renewing homeowner. They can help explore multiple lender options, compare mortgage products and understand the potential benefits and costs of switching. Even homeowners who are happy with their current lender may find it useful to speak with a mortgage broker before signing a renewal, to ensure they are aware of all the opportunities.
Mortgage renewal preparation can begin around 120 days (4 months) in advance of the end of the mortgage term. Waiting until the renewal letter arrives can limit the time available to explore other options.
What this means for Saskatoon homeowners
With Saskatchewan’s housing market holding steady compared with other markets in Canada, prices have continued to climb over the past couple years. For homeowners, this steady growth could mean additional equity and more options, such as:
- Qualifying for better rates or more lenders
- Consolidating higher-interest debts into the mortgage using a refinance
- Adjusting the amortization to manage payments
These options may come with trade-offs, such as requalifying or paying more interest over time, but could help homeowners budget more effectively with higher interest rates.
Mortgage renewal is an opportunity to revisit financial goals
There are a lot of changes that can happen over the term of a mortgage. Households may have changes to income, additional family members, new expenses or different priorities. Mortgage renewal provides an opportunity to review whether the existing mortgage structure still works to meet the family’s needs.
Some changes, like refinancing or extending the amortization period, may increase the overall borrowing costs and require additional qualifications. Homeowners planning to move, renovate or pay their mortgage down faster should also consider penalties and portability when reviewing their goals and mortgage options.
Common renewal mistakes to avoid
Don’t sign the first offer. It is not always the most competitive.
Don’t wait for the renewal letter to come before starting to look at options.
Don’t try to time the market for the perfect rate. Locking in early with a rate hold can protect the homeowner either way, but requires planning ahead.
Don’t just look at the rate. Mortgages have a lot of terms and can have high penalties. Make sure to review all aspects of a mortgage offer to make sure it is fully understood.
Don’t ignore the bigger picture. Renewals are a great time to review the full financial picture without penalty, so it is worth asking if the current structure still fits.
Planning now with confidence
Mortgage renewals don’t have to be stressful or complicated. For homeowners approaching renewal in 2027, taking time to understand their options ahead of time can lead to better financial decisions and more confidence moving forward.
Starting the process early allows homeowners to prepare for potential payment increases, compare competitive rates and terms and consider which structure would best suit their current financial needs.
Reaching out to speak with a knowledgeable mortgage broker can help homeowners gain confidence and understanding of what a 2027 mortgage renewal could look like for them.
Have a mortgage renewal coming up in 2027? Get in touch with our team to review your options well before your renewal letter arrives.
