5 Smart Mortgage Moves to Start the Year Strong

January 19, 2026 | Posted by: Erin Finlayson

5 Smart Mortgage Moves to Start the Year Strong

The start of a new year is the perfect time to take a step back and look at your mortgage. Whether you’re a homeowner, approaching a renewal, or just getting organized, a few simple actions now can save you thousands and set you up for a financially strong 2026. Here are five smart mortgage moves to consider.

1. Review Your Budget and Cash Flow

Before making any big mortgage decisions, take a close look at your monthly income and expenses:

• Are there areas where you could free up extra cash for mortgage payments or prepayments?

• Do you have a realistic view of your household spending, including discretionary and seasonal costs?

Why it matters:
Understanding your cash flow helps you decide if increasing payments, making a lump-sum prepayment, or switching payment frequency is realistic — without stretching your budget.

2. Check Your Amortization

Amortization is the total length of your mortgage — and it impacts how much interest you pay over time.

• If you’re early in your mortgage, a slightly shorter amortization can save thousands in interest.

• If your payments feel tight, lengthening your amortization (carefully) may lower monthly payments without renegotiating rates.

Tip: Your lender or mortgage broker can run scenarios to show the impact of changing amortization on your mortgage balance and interest.

3. Make a Plan for Prepayments

Most Canadian mortgages allow annual lump sums, extra payments, or increased monthly amounts.

• Even a small extra payment each month or a lump sum once a year can cut years off your mortgage and save you money in interest.

• Prepayments are especially valuable early in your term, when more of your payments go toward interest.

Action: Decide on a target amount you can comfortably add this year — and treat it as a part of your financial plan.

4. Prepare for Upcoming Renewals

If your mortgage is coming up for renewal in 2026, now is the time to prepare:

• Review your current interest rate and payment structure.

• Compare renewal rates to current market rates — sometimes switching lenders or renegotiating terms can save you thousands.

• Factor in any life changes that might affect your mortgage strategy.

Pro tip: Lenders like borrowers who plan ahead. Being proactive gives you better options and negotiating power.

5. Reassess Your Long-Term Goals

Your mortgage should support your financial life, not limit it.

Ask yourself:

• Are you planning renovations, a move, or debt consolidation this year?

• Does your mortgage structure align with these goals?

• Do you need more flexibility in your payment schedule or term?

Why it matters: A mortgage isn’t just a loan — it’s a tool to help you reach your financial and lifestyle goals.

Final Thoughts

Starting the year with a clear mortgage plan can save you money, reduce stress, and help you feel in control of your financial future.

Even small steps — budgeting, prepayments, or a renewal check — can make a big difference.

If you want a personalized review of your mortgage for 2026, let’s connect. We can look at your budget, payment options, and strategies to make your mortgage work harder for you this year.

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