Hey, my name’s Josh and I’m a mortgage broker here in Alberta. I help homeowners and new Canadians navigate big financial decisions like mortgage renewals. With a major wave of renewals across Canada in 2026 on the horizon, I want to share simple advice to help you make the best choices for your family and your budget.

News reports show that mortgage renewal is one of the biggest financial pivots homeowners face — and it can significantly affect your monthly payments.

What is a Mortgage Renewal?

In Canada, a mortgage is broken up into terms (often 5  years) and when one term ends you need to renew your mortgage. You can either do that with your current lender (they’ll send you a renewal offer a few weeks ahead of time) or switch to a new one.

About 60 per cent of all outstanding mortgages in Canada are up for renewal in 2025 and 2026. Many homeowners will face higher payments because the rates are higher now than they were when homeowners locked in 5 years ago. Here are a few things to consider as you prepare for your renewal:

1. Remaining Mortgage Balance. Know how much you still owe. Your renewal is a chance to review your progress and consider extra payments or refinancing to reach your goals faster.

2. Interest Rate. Your new rate may differ from your original one. Even small changes can affect monthly payments and total cost. Explore whether a fixed or variable rate suits your financial goals.

3. Payment Frequency. Switching to bi-weekly or accelerated payments can help you pay off your mortgage faster and save interest.

4. Term Length. Longer terms offer stability; shorter terms provide flexibility to take advantage of rate changes sooner.

5. Charges or Fees. Be aware of any renewal fees, prepayment penalties, or administrative costs. Knowing these ahead of time helps you budget and avoid surprises.

Family Loans Can Complicate Your Renewal

Using family money to pay down a mortgage seems smart, but stricter anti-money laundering rules and lender audits mean family loans can sometimes complicate things.

For example, a homeowner with a $280,000 balance planned to pay $200,000 from a parent’s loan. The bank refused. Federally regulated lenders treat family loans as debt, not extra security. Any large deposit must be reviewed for source, control, and repayment expectations. Legal documentation confirms a loan but doesn’t remove the lender’s concerns.

True gifts from family are generally acceptable if properly documented with a gift letter confirming they’re non-repayable. The key takeaway: intent isn’t enough — classification is necessary.

Renew With Confidence

Mortgage renewal doesn’t have to be stressful. Understanding key factors, planning ahead, and handling family funds carefully helps protect your financial future. If your renewal is coming up or you’re thinking about using family assistance to pay down your mortgage, reach out. Early planning often makes the difference between a smooth renewal and a stalled transaction.

Frequently Asked Questions About Mortgage Renewal and Family Funds

Can my parents loan me money to pay down my mortgage?
Yes, but any family loan is treated as debt. Lenders must include it in your borrowing capacity, which could affect your renewal or refinancing options.

Are gifts from family always acceptable?
Generally, yes — as long as the funds are truly non-repayable and you provide a signed gift letter and proof of the source of funds. Any expectation of repayment changes the classification to a loan.

Does using a lawyer make it easier to use family funds?
Legal documents clarify that funds are a loan, but they don’t remove the lender’s requirement to treat it as debt. This can still affect your renewal.

Can I wait until after renewal to make a large payment from family funds?
Possibly, but lenders may still review large deposits near the renewal date. Timing alone does not remove scrutiny.

What should I do before using family money?
Seek advice first. Transparent planning and early discussion with your broker or lender often make the difference between a smooth renewal and a stalled transaction.