Mortgage Planning for Next Steps

Tracy Head • June 28, 2024

While working with my clients I take the time to understand not only what they are hoping to accomplish right now but also where they see themselves headed in the future.


Why is this important?


Sometimes clients have a short-term goal of getting into the housing market and planning to upgrade within the next few years. Sometimes clients are relocating but are nearing retirement so will be looking to downsize soon. Others may be in it for the long haul – starting their families and buying a home they intend to raise their children in.


Qualifying what comes next to say that the best laid plans can often go awry. Rate is not always the deciding factor. When I am choosing a lender for my clients, knowing what their longer-term plans are may steer me one direction or another.


For example, if I know that my clients may potentially make a move and upsize in the next few years I will most likely choose a lender that has favorable policies around porting their mortgages and that offers a blend and extend option.


If my clients express the intention that they will be downsizing in the next few years, and potentially into an age-restricted complex, I will likely choose a different lender. If my clients feel that they will be staying put for the long haul I may well look at yet a different lender.


Why might I look at one lender over another?


As an example, certain lenders will not offer mortgages in age-restricted complexes. Some lenders have very restrictive policies around how they offer clients the option to port their mortgage from one home to the next.


Lenders can have different geographical lending areas, so we also consider that if a client tells us they may be wanting to move to a more rural area. Some lenders are far more aggressive at renewal with respect to what they will offer their clients in terms of a rate for their next term.


I also consider the client service provided by lenders after the mortgage has been advanced.


There are a few lenders that I will not place clients with because of the experience I or other clients have had with them in the past. These particular lenders often have the lowest of the low rates but in this case you get what you pay for.


In my earlier days brokering I used the tagline “creating clients for life”. That was of course interpreted by some as meaning clients would have mortgages for life – this was not what I meant. The intent behind the phrase was that I aim to build relationships with my clients to make future moves and changes to their mortgages much smoother for them.


Quick reminder: if you haven’t already claimed your Home Owner Grant – do it sooner rather than later!


Happy Canada Day all.

Tracy Head

Mortgage Broker

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Mortgage Crisis

By Tracy Head • September 5, 2025
A wise broker friend of mine once told me there is no such thing as a mortgage emergency. I think this may depend on whose perspective this is. I’ve thought about her statement over the years. I think what constitutes a mortgage emergency really depends which end of the transaction you are on. One situation I run into regularly is clients who have left dealing with their mortgage renewal until the bitter end. This doesn’t necessarily constitute a mortgage emergency if you are not planning to make any changes to your mortgage and you intend to stay with the same lender. However, if you are in a private mortgage that was intended to be a short-term solution leaving your renewal until the bitter end can put you in a precarious position. Not all private lenders automatically offer renewals. Some charge a significant fee to renew for another term. Some will renew but dramatically increase your rate. If your plan was to move to a traditional lender once your private mortgage comes up for renewal this process can take weeks and in some case months. Depending on your situation a refinance to pay out your private mortgage can be very challenging right now with stricter qualifying guidelines and higher interest rates. Sometimes clients are proactive with their plan to move from a private mortgage and we run into problems and additional document requests from the new lender or challenges like delays in getting appraisals done. Whether you are in a private mortgage or your mortgage is with a traditional lender I suggest you start looking into renewal options about six months ahead of your maturity (renewal) date. We can lock down an interest rate hold for you four months ahead of your maturity date but I love to have a conversation with my clients about six months prior so we can develop a plan as to how we will handle their upcoming renewal. Not all lenders offer an open mortgage at renewal so if you dawdle too long you may end up locked in with your current lender for a bit longer. If you have left your mortgage renewal until it is right around the corner don’t panic. Many lenders do offer an open mortgage so you can opt for this to buy yourself some time if you are planning to make any changes to your mortgage. Take some time to evaluate your options. Small tweaks can potentially make a significant difference to your bottom line so it is key to work with a professional that has your best interests at heart.

Early Renewal

By Tracy Head • August 27, 2025
Does an early renewal make sense? 2020 was a very busy year for home buying and mortgages. This means that 2025 is and has been a busy year for mortgage renewals as the majority of clients seemed to choose five year terms in 2020. I’ve had lots of conversations with my own and new clients about whether it makes sense to renew early. Each conversation is slightly different based on client needs and their individual circumstances. Most of the time I suggest that clients stay with their current lenders until their renewal dates because their current interest rates are anywhere between 1.6 per cent and 2.79 per cent. If you don’t need to make any immediate changes it makes the most financial sense to stay put until your term runs out. We can start the process of either switching or refinancing mortgages four months ahead of your renewal date and lock in a rate for you. As a generalization, when people ask about doing a straight switch (not adding any money to their mortgage) I will do a survey of what interest rates are available so they can go back to their lender to try to negotiate a great rate. Time and time again I’ve worked with clients on switches for them to cancel at the last minute as their current lender finally sharpens the pencil rather than lose the client. This is why I always try to help people negotiate with their current lender rather than put everyone through the work of having a new mortgage approved. If clients are wanting to add money to their mortgage to pay out consumer debt or pay for home renovations that changes things a bit. Some lenders are more aggressive with their refinance rates so it makes sense to make a move. Another situation has popped up this week that has had me crunching numbers for multiple clients. One of my favorite lenders came out with a quick-close rate special that is pretty hard to pass up. The fine print is that the new mortgage has to finalize within thirty days. I have been working on a refinance at renewal for clients that is set to close at the beginning of November. I took a look at how their current lender calculates the payout penalty when they are this close to renewal. It turns out they charge daily interest instead of a three-month interest penalty or interest rate differential. So I did the math. If we pay out early to take advantage of this great interest rate their payout penalty is around the $1000 mark. Over the term of the new mortgage they will save approximately $5500 in interest cost and their monthly payment will be about $85 per month less. Even after they pay out the penalty to move a bit early they will still be $4500 ahead over the term of their mortgage. This is one of the few times I’ve recommended that it makes sense to move forward ahead of the renewal date.  If you have a renewal coming up over the next few months I’d say it’s a good idea to connect with your mortgage person to look at what rates are available now and figure out whether it makes sense to consider making a move sooner rather than later. Lenders will pop up with rate specials from time to time so it is worth having your mortgage professional keep an eye open for you as your renewal date comes closer. It may just save you a significant amount of money.