Your Mortgage Is Renewing. Is Your Financial Plan?

I was recently introduced to an interesting statistic and thought it was worth sharing.

In July 2025, the Bank of Canada estimated that approximately 60% of all outstanding Canadian mortgages would renew in 2025 or 2026. That means millions of homeowners are reviewing their mortgages and, in many cases, adjusting to different interest rates and payments. (Bank of Canada).

Of course, getting a competitive interest rate is important. But a mortgage renewal can also be a good opportunity to step back and look at your broader financial picture.

Has your income changed? Has your family grown? Are you carrying other debts? Are you approaching retirement? Most importantly, if something unexpected happened, would your family have enough financial flexibility to make the choices that are right for them?

Start with the family, not the mortgage

Most homeowners ask: “Will my mortgage be paid off if I die?”

Obviously, an important question, but maybe consider:

“Will my family have choices if I’m no longer here?”

A mortgage may be the largest debt a family carries, but it is rarely the only financial responsibility. If something happened to you tomorrow, your family might also need money for:

• Everyday living expenses
• Childcare
• Education costs
• Household bills
• Other outstanding debts
• Time away from work
• Future financial goals

Paying off the mortgage could certainly provide peace of mind, but would that be the only priority?

Many homeowners are offered mortgage life insurance through their lender. It can provide valuable protection, but it is important to understand how it works.

With lender-held mortgage life insurance, the lender is the beneficiary. If an eligible claim is approved, the benefit is used to pay the outstanding mortgage balance. Your family does not receive the money directly, and the coverage generally decreases as the mortgage is paid down. It can be more expensive than conventional term insurance as well.

With an individual term or permanent life insurance policy, you choose the amount of coverage and name the beneficiary. Your beneficiary can then decide how best to use the proceeds, whether that means paying off the mortgage, covering monthly expenses, helping with education costs or setting money aside for the future.

As you prepare for your mortgage renewal, consider:

“If my family received a lump sum tomorrow, what would be most important for them to do with it?”

The answer may be paying off the mortgage. It may also be keeping the monthly payments manageable while preserving money for everyday life. Every family is different, which is why protection planning should be based on your family’s complete needs rather than one specific loan.

A mortgage renewal is not just about choosing a term and negotiating a rate. It can also be a natural time to review your cash flow, debts, insurance coverage, retirement plans and the people who depend on you.

The goal is not simply to leave your family with a mortgage-free home but with choices.

If your mortgage is coming up for renewal, we would be happy to help you look at how it fits into your overall financial plan and whether your current protection still reflects your family’s needs.

This information has been prepared by Laura Chanin who is an Investment Advisor for iA Private Wealth Inc. and does not necessarily reflect the opinion of iA Private Wealth. The information contained in this newsletter comes from sources we believe reliable, but we cannot guarantee its accuracy or reliability. The opinions expressed are based on an analysis and interpretation dating from the date of publication and are subject to change without notice. Furthermore, they do not constitute an offer or solicitation to buy or sell any of the securities mentioned. The information contained herein may not apply to all types of investors. The Investment Advisor and Portfolio Manager can open accounts only in the provinces in which they are registered.

iA Private Wealth Inc. is a member of the Canadian Investor Protection Fund and the Canadian Investment Regulatory Organization. iA Private Wealth is a trademark and a business name under which iA Private Wealth Inc. operate