Mortgage Renewal Homework

Tracy Head • July 15, 2024

Unprecedented activity five years ago means that there are now a significant number of mortgages up for renewal.

Most clients initially sign a five-year mortgage term. That means that at the end of the five years their mortgages come up for renewal. 


Statistics that I’ve seen from several different sources indicate that approximately two out of three Canadians break their mortgages early.


What do I mean by break?


What I mean by break is that if at some point during the five years they move, sell their home, or refinance their original mortgage they have broken their mortgage.


If you have not made any changes to your mortgage, at the end of the five-year term your mortgage comes up for renewal.

Lenders handle renewals differently. Some start aggressively offering renewal options to their clients at least six months ahead of time. Others send renewal offers at the three-month mark. Some follow up repeatedly with phone calls; others wait for the client to reach out to them.


A significant number of lenders offer a 120 day rate guarantee for clients that are approaching their renewal date.

If your mortgage is coming up for renewal it is important that you do your homework to make sure you are being offered a competitive rate.


A client that had just received a renewal offer in the mail from her financial institution called me last week to talk about the rate the bank was offering her. She felt it was much higher than what she was seeing advertised online.


I reviewed my rates. The same lender was offering new clients in the door a rate that was almost one per cent lower. 

My suggestion to her was to go call the lender and see if they were able to offer a lower rate. Less than five minutes on the phone with the lender’s customer relations team and they had reduced the rate to match what was currently available for new clients.


In some cases lenders are not offering competitive rates. If so, you are able to switch your mortgage to a new lender at the maturity date.


Many lenders review their clients’ financial situations before offering renewal rates. If there have been significant changes, they may offer a higher rate to account for (perceived) higher risk. As an example, if the client’s credit score has dropped considerably or if there is a great deal of new debt they may not be offered the lowest rates available.


In some cases, clients who do have multiple loans and credit cards outstanding may find that renewal is a good time to refinance and consolidate their consumer debt. A consolidation may help reduce their monthly expenses and will over time help bring their credit score back up.


Whether your mortgage is coming up for renewal, you are initially purchasing your home, or you are restructuring down the road, it is important to spend some time looking into your options. 


We are happy to discuss current rates with you if your mortgage is coming up for renewal. In most cases it makes sense to stay with your lender as they will most often match rates available with other lenders. In others, it makes sense to look at switching to a new lender if the rate you are being offered is not competitive.



Take a few minutes and do your homework. An informed decision can save you thousands of dollars in the long run! 

Tracy Head

Mortgage Broker

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Changes Affecting Financing

By Tracy Head • November 14, 2025
I consider myself a lifelong learner, which is part of the reason I love my work. Every day there is something new and exciting to learn, or in some cases re-learn. When I first came back to the mortgage world a more seasoned broker gave me a copy of a handout she used with clients. It talked about the ten most important things NOT to do between removing your financing subject and finalizing the purchase of your home. At the time I remember thinking that the handout sounded patronizing and I assumed clients just understood they shouldn’t do any of the ten things. You know what they say about assuming things. Once or twice my clients have made decisions that have almost jeopardized their financing. The reason this came up for me right now is that I am working my way through a training course which is geared towards helping me re-design my team and my workflow, with the ultimate goal of providing even better support to my clients. One of the changes I am going to implement is adding a list very similar to the original ten things not to do list to my signing packages so that we are all on the same page and avoid any potential challenges down the road. What are the ten things? I won’t go over all of them, but here are a few of the things that have surfaced recently: If you change the closing date on your purchase or if you receive the Notice of Completion on a newly built home, advise your mortgage person right away. Never assume your realtor will do this for you. Do not go out and finance anything without checking with your mortgage person. If you are pushing the upper limit of your buying power even a small loan for furniture might put your financing at risk. Many lenders pull your credit again shortly before your mortgage finalizes. Along the same lines, make sure all of your payments are made on time. Do not co-sign a loan for anyone. Do not quit your job or change employers without talking to your mortgage person ahead of time. Do not spend any of the money you have tucked away for your down payment. If you have money sitting in higher-risk investment better to move them to something more stable in case of market fluctuations. Most people think that once they get the ok to remove their financing subject that their mortgage is a done deal. The small print on every mortgage commitment includes a clause that says something along the lines of “Your financing is based on your current situation. Material changes to your situation prior to the funding of your mortgage may affect your approval.” I’m currently working with a young lady that decided to purchase a boat between the time we had our pre-approval conversation and the day she wrote her offer to purchase. She had decided not to buy a home then found her dream property. We’ve had to look at a few options as the boat payment threw her ratios out of line. She is fortunate that her parents are very supportive and are going to gift her the money to pay off the boat loan, but if she didn’t have that back up plan the new loan would have reduced her borrowing power by over $100,000. The reason I added the comment “without checking with your mortgage person” in the bullets above is that every client’s situation is unique and some of those changes might be just fine. Some might not, and the last thing you want to do is find yourself scrambling to figure out a Plan B shortly before closing.  Best to have the conversation and be certain.

Mortgage Options

By Tracy Head • November 1, 2025
In past columns I’ve covered when no means no and when no means maybe there’s another option. There are many aspects of my work that I love. One is that I learn something new each and every day. No two clients are the same and no two applications are the same. Some are easier than others to put together. Another thing I love is that we have so many options to consider when working on our files. I do find immense satisfaction when I tackle a complicated file and find a great solution for my clients. I am working with an amazing young couple as they build their portfolio of rental properties. They are relatively young but both work incredibly hard and really have their ducks in a row. The plot twist they have is that they both transitioned from salaried positions to being self-employed over the last year. Their credit scores are both in the high 800s (900 is a perfect score), they are both making substantial income, and they have saved over $100,000 for their down payment.  Seems like a slam dunk right? Because they don’t have two years of filed tax returns as self-employed business people our options are a bit limited. There is a program we use in this situation but their scenario does not fit within the guidelines. Their dream home just came on the market so they are wanting to buy and convert their current home to a rental property. This particular home came up in the neighborhood they really want to be in, and homes don’t come up very often. It is immaculate and has a legal suite. They had originally approached their bank and been told it was a hard no. I work with their realtor fairly often and she suggested they give me a call. Within 24 hours we had the approval in place for them. We ended up taking the application to an alternative lender for a two-year term. The interest rate is about .5 per cent higher than a chartered back and there is a 1 per cent fee charged. We weighed out the pros and cons of going this route versus holding off until their next tax returns are filed before purchasing another property. After chatting with their financial advisor and accountant they felt it was worth the slightly higher interest rate to be able to buy the home now. I will say I love straightforward simple applications but in reality those are few and far between. Most of the applications I work on these days seem to have some sort of plot twist like this one so I am very grateful there are so many options available to help clients who may fall a little outside of the standard lending guidelines.