How to Prepare Your Mortgage Strategy During the Holiday Spending Season
November 20, 2025 | Posted by: Keith Leighton
How to Prepare Your Mortgage Strategy
During the Holiday Spending Season
The holiday season is a time for family, celebration, and, let’s be honest, extra spending. Between gifts, travel, food, and winter bills, it is easy for financial stress to creep in. But this time of year can also be the perfect moment to take a step back and review your mortgage strategy before heading into the new year.
Whether you are facing higher payments, a renewal in 2026, or simply trying to keep your budget under control, here is how to stay financially grounded during the holidays while planning smart for your mortgage.
1. Revisit Your Monthly Budget Before Holiday Costs Ramp Up
Holiday expenses tend to sneak up quickly. Before they do, review your current monthly cash flow:
• What are your fixed expenses such as mortgage, utilities, insurance, and car payments?
• Are there variable expenses you can temporarily scale back?
• How much do you realistically expect to spend this holiday season?
Knowing your financial baseline makes it easier to avoid relying on credit and keeps your mortgage payments on track, especially if you have experienced rate increases in 2024 and 2025.
Pro tip: Set a holiday spending limit and stick to it. A bit of upfront planning can prevent January credit card shock.
2. If Your Mortgage Is Renewing in 2025 or 2026, Start Planning Now
The holiday season may not feel like the right time to think about mortgage renewal, but it is actually ideal. Lenders get busier in spring, and rates can move quickly. Early preparation gives you more options:
• Better offers
• More time to compare lenders
• Less pressure when your renewal date arrives
Most lenders allow you to secure a rate 120 days before renewal. Locking in early can protect you if rates rise again.
3. Assess Whether a Refinance Could Ease Holiday and Winter Cash Flow
If your payments have increased because of recent rate hikes, you may be feeling the holiday season even more. In some cases, a refinance can:
• Lower your monthly payment
• Consolidate high interest debt
• Free up cash for essential expenses
• Reduce overall financial stress heading into 2026
A refinance is not always the right move, but this time of year is a good opportunity to run the numbers and see whether it would help you meet your financial goals.
4. Explore Prepayment Options Before Year End
If you have had a strong financial year, you may be able to use a portion of your holiday bonus or year end savings to reduce your mortgage balance. Common prepayment options include:
• Making a lump sum payment
• Increasing your regular payment amount
• Switching to accelerated payments
Even a small lump sum can reduce years of interest costs. If cash is tight, skip this step and focus on stability. The goal is financial health, not strain.
5. Review Your Emergency Fund Before Winter Hits
Winter brings higher heating bills, unpredictable weather, and potential job slowdowns. During the holiday season, make sure your emergency fund is still intact.
Experts often recommend three to six months of essential expenses. If yours has dipped, set a small goal to rebuild it in early 2026. A solid emergency fund protects your mortgage even during unexpected events.
6. Do Not Let Holiday Promotions Distract You From Long Term Goals
Retail deals and flashy financing offers for furniture, vehicles, and electronics are everywhere. It is easy to get swept up in the idea of a discount. Many of these purchases take up credit room or add new payments, which can affect your mortgage options next year.
Before buying, ask yourself:
• Will this affect my ability to qualify for a renewal or refinance?
• Is this a need or a want?
• Will the monthly payments add stress after the holidays?
Protecting your mortgage affordability should remain a priority.
7. Talk to a Mortgage Broker Before the New Year
A quick year end review with a mortgage professional can help you:
• Understand how holiday spending may impact your borrowing power
• Compare renewal options early
• Decide whether refinancing makes sense
• Create a personalized mortgage plan for 2026
• Identify strategies that reduce payment stress
This is especially helpful if you have experienced higher variable rate payments or payment shock at renewal.
Final Thoughts
The holidays should be enjoyable, not financially overwhelming. With a clear mortgage strategy, you can enter the season with confidence while setting yourself up for a stronger financial year ahead.
A little planning now can help ensure your mortgage, budget, and stress levels stay under control throughout the holidays and into 2026.
Contact your Ideal Mortgage professional today!
