Read Your Mortgage Renewal Offer

Tracy Head • April 20, 2023

Twice over the last week I’ve had conversations with clients regarding their mortgage renewal offers that have really concerned me.


If you are new to the mortgage world, when you first get a mortgage you choose a term of anywhere from 6 months to ten years. Your interest rate (if fixed) is locked in for this period of time. At the end of whichever term you chose, your mortgage is up for renewal. You can choose to stay with your same lender or look for another lender.


As a rule, when I am working with my clients leading up to their renewal date I research to see what is available for them in terms of options. If they are planning to renew their mortgage without making any changes the first place I check is their current lender. Signing a renewal offer is pretty straightforward. You consider the options presented by your current lender, select your preferred choice, and sign on the dotted line.


If clients are planning on going this route I offer guidance and support to try to get them the best rate possible with their current lender. Unless there is a dramatically better offer with another lender this is the path of least resistance for you. For my own clients, I selected their original lender for a combination of reasons so it often makes sense for them to stay put.


If clients are wanting to pull equity from their home or add a credit line to their current mortgage then we look a little further afield. The two conversations that concerned me this week were with clients planning to stay the course with their current lender. Both clients were with the same lender.


Their renewal offers arrived with the rate of 6.14 per cent for a five-year term. In one case the clients had an insured mortgage, and in the other the client owed less than fifty per cent of the value of his home.


For perspective, most lenders are offering around 4.64 per cent for insured mortgages right now. Several lenders, including the one both of these clients are with, are offering the same rate for clients who have more than 35 per cent equity in their homes. After several back and forth requests with the lender, both of these clients signed their renewals at 4.64 per cent.


For the larger of these two mortgages, the interest difference between the two rates amounted to a savings of $26,673 over the next five years. Better yet, the difference in the monthly payment was $328.94. With costs soaring across the board $328.94 a month goes a long ways towards covering other expenses.


What was particularly concerning for me was a comment from one of these clients. She said “If you hadn’t reached out to help us with our renewal we would have just signed off thinking that was the best rate they would offer us”. I cannot stress enough how important it is to connect with a mortgage professional to look into your mortgage renewal options. Have your mortgage balance at renewal available, as well as the value of your home. It is also important to know if your mortgage is insured (when you purchased you had less than 20 per cent down payment).



Having this information handy when you reach out to your mortgage professional will help them narrow

down the best options for you.

Tracy Head

Mortgage Broker

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Purchase Checklist

By Tracy Head • August 11, 2025
Last week was a vivid reminder of the importance of finalizing your home insurance as soon as you are within thirty days of your closing date on a home purchase. I had three clients with purchases closing on the Friday after the fire broke out in Peachland. All three had to push their closing dates back because they couldn’t get their insurance in place due to an active fire. Thinking about this led me to consider a few of the key steps involved when purchasing a home. I’ve written about this in prior columns but I feel a reminder is never a bad idea. There are a few areas of crossover between the guidance your realtor gives you and the advice you receive from your mortgage person. When your realtor writes your purchase contract there are some standard conditions that are added to the agreement. You will generally see the following: Subject to the purchaser obtaining satisfactory mortgage financing Subject to the purchaser having a home inspection conducted Subject to the purchaser arranging home insurance Subject to review of strata documents if applicable Subject to the sale of the purchasers’ current home if applicable The financing end is obviously our responsibility. I do double-check with my clients that they have taken care of the other conditions. Most realtors are great at offering support to their clients with respect to addressing the relevant conditions. In some cases I feel like realtors tell clients the steps they need to take but my guess is that the whole process can feel or become overwhelming. Before I give my clients the ok to remove their financing subject I confirm that they have taken care of the home insurance as this is one piece they sometimes miss.  If you are going through the process of purchasing a home my suggestion is keep a notebook (aging myself by suggesting a paper version) or a list on your phone to keep track of your must-do tasks as you go through the process. I have a checklist that I’m happy to share if you would like a copy.

What does your mortgage broker bring to the table

By Tracy Head • August 2, 2025
What does your mortgage broker bring to the table? I love what I do. Every day I learn something new. I meet amazing people. Each day is different and knowing that what I do is important is good for my soul. I had someone call the other day to ask some questions about a pre-approval and he finished up the call with a genuine question. Why would he want to work with a mortgage broker instead of his bank? There are many ways to answer that question. This isn’t intended to be a sales job about working with me but rather with mortgage professionals in general. Before you read any further understand that working with your bank may be the easiest solution for you. There are some amazing employees within the branch system so this is not intended in any way to make light of the work they do. As licensed professionals we work with mortgages every day. Most of us seem to live and breathe mortgages all the time including evenings and weekends. For many of us our families are annoyed by the constant distraction of our work. Boundaries are important of course and some brokers work a strict schedule. Many of us do make ourselves available evenings and weekends to help our clients because not everyone has the flexibility in their workday to deal with their mortgage. We work for you rather than one specific lender or financial institution so are looking for options that fit your situation rather than making your mortgage fit within one product. One of the most important differences between working with your bank and working with a mortgage professional is options. Not every client fits a cookie cutter approach. There are some situations where clients’ income doesn’t support their application in the traditional lending world. Sometimes clients have credit challenges. Sometimes clients are looking at a unique property. Mortgage professionals have access to a wide range of lenders, some of whom offer specialty products not available at your bank. Product knowledge and expertise can be another difference. As an example I work with many clients who are self-employed. There are mortgages specifically geared for self-employed clients that are available at banks as well but often the employees are unaware of these options.  For me, the relationship I build with my clients is the main differentiator about why I say clients should work with a mortgage professional rather than their bank. I take the time to get to know my clients and their situations and longer-term goals. I will still be here when their mortgage comes up for renewal and am able to answer questions in the meantime. I’ve had many clients comment over the years how much they appreciate the personal approach rather than feeling like a number at their bank - having to start from scratch with someone new each time they need help.