Mortgage Shock For Oshawa Homeowners : How Rising Renewals Will be Challenging

David Jeffrey
Published: March 17, 2025
Last Updated: March 16, 2025

David Jeffrey
Published: March 17, 2025

Mortgage Shock For Oshawa Homeowners : How Rising Renewals Will be Challenging

As 2025 unfolds, homeowners in Oshawa and the Durham Region are facing a financial reckoning due to upcoming mortgage renewals and refinancing. Many who secured ultra-low rates in the past few years are now seeing dramatic increases in their payments, leading to financial stress and tough decisions.

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Why Mortgage Renewals Are More Expensive in 2025

Interest rates have climbed significantly compared to 2020-2021, when many homeowners secured fixed-rate mortgages at historic lows. Now, as these mortgages come up for renewal, borrowers are encountering rates 2 to 4 percentage points higher than before.

A recent Royal LePage survey found that:

57% of Canadians renewing this year expect their payments to increase.
22% predict a significant jump in payments that could strain their finances.
81% of those expecting higher payments say it will cause financial stress.

Example of a Mortgage Payment Increase

Let’s say a homeowner in Oshawa took out a $434,000 mortgage in 2020 at 2.5% interest with a 25-year amortization:

Their monthly payment was $1,944.
At renewal in 2025, if their new rate is 4.44%, their remaining balance would be around $367,000.
Their new monthly payment would jump to $2,411—a $468 increase per month.

This kind of financial strain is forcing homeowners to reconsider their budgets, refinance strategically, or even sell their homes.

How the Durham Region Housing Market Affects Refinancing

The housing market in Oshawa and Durham Region is shifting. In January 2025, the average home price in Oshawa was $779,868, down 1.2% year-over-year.

Detached homes fell 5.7%, averaging $827,223.
Townhouses rose 3.4%, averaging $765,400.

For homeowners looking to refinance, a declining home value can limit borrowing options. If a home’s market value has dropped, homeowners may not have enough equity to qualify for a favorable refinancing deal. This means some may be forced into higher payments or seek alternative financing solutions.

How to Handle a Costly Mortgage Renewal

With higher rates and home value fluctuations, homeowners need to take proactive steps to manage their mortgage renewals. Here are some key strategies:

1. Work with a Mortgage Broker

Instead of simply accepting your lender’s renewal offer, compare rates and negotiate. A mortgage broker can:

Shop multiple lenders for the best rates.
Help extend the amortization period to lower payments.
Find alternative lenders if traditional banks reject your refinancing application.

Companies like Lendtoday offer mortgage services in Oshawa, providing homeowners with competitive rate comparisons and refinancing solutions.

2. Explore Legal and Refinancing Assistance

Mortgage refinancing often involves legal considerations. Law firms in Durham Region specialize in helping homeowners navigate refinancing documents and ensure they understand their options.

3. Compare Current Mortgage Rates

Before renewing, check the latest rates from different lenders. Mortgage professionals allow homeowners to compare the best mortgage rates available in Oshawa and Durham Region, helping them make an informed decision.

4. Assess Financial Impact and Adjust Your Budget

If your mortgage payment is increasing by hundreds of dollars per month, you may need to make lifestyle adjustments to absorb the cost. Consider:

Cutting unnecessary expenses (subscriptions, dining out, etc.).
Exploring rental income opportunities (renting a basement apartment or spare room).
Paying off other high-interest debts to free up monthly cash flow.

5. Consider a Fixed vs. Variable Rate Strategy

If interest rates continue to rise, locking in a fixed rate now may provide security. However, if rates are expected to drop, a shorter fixed term or a variable rate mortgage could be a better long-term option. Consulting a mortgage expert can help determine the best strategy based on market trends.

Final Thoughts: Stay Proactive to Avoid Mortgage Shock

The rising cost of mortgage renewals is putting pressure on homeowners in Oshawa and Durham Region, but there are ways to minimize financial strain. By working with professionals, comparing options, and adjusting financial habits, homeowners can navigate these challenges and stay financially secure.

If your mortgage is up for renewal in 2025, start planning now to avoid unnecessary stress and secure the best deal possible.

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David Jeffrey

Hi there, I’m one of the founding members of Lendtoday.ca. Our journey to start this business began with friendship and a belief we could help people solve their mortgage problems. We wanted to provide a safe space for people to be heard and not judged. I’ve spent many years in the accounting and financial industry and heard the same thing repeatedly from friends and colleagues. “When we try to get anything done, we’re treated like a number and not a person". To me this made no sense. Taking the human and personal connection away removed an important piece of the relationship. Hearing what people needed was really the fastest way to solve their problems. I felt that my experience in working closely with people would be well suited for an industry that is slowly moving away from personal interactions.