Renewal Options

Tracy Head • January 26, 2024

It feels like I’m harping on the subject of mortgage renewals, and that may well be the case.


Many of my conversations with clients right now are deep dives into renewal options.


One of my calls this week really struck me. I was talking to Jim (name changed of course), a new client whose mortgage is currently with one of the big banks.


After we worked through the initial questions I start with, he shared that the renewal department of his current bank had started calling him in December. His mother had just had a stroke and he was at the hospital with her.


He tried to tell the renewal officer that it was a bad time. The person calling kept pushing him to commit to locking into a 5 year fixed term for his renewal and told him this ”great rate” would not be available if he didn’t commit that day.


He hung up. The renewal officer called repeatedly, sometimes up to three times per day.


Once I had a better idea of Jim’s situation and plans for the future we chatted about options for him.


As it turns out, he is on the home stretch towards having his mortgage paid out. More important is his plan to retire in three years, sell this home, and move to a smaller home that he already owns in the Oliver area.


He had no idea that he could even choose a three-year term. He has always gone with a five-year term thinking that was his only option.


We played with some figures to see how he could pay his mortgage off within his three-year plan. In his case, he will be staying with his current lender because that makes the most sense given his timeframe to retire and sell his home.


The eye-opening takeaway for me was the high-pressure sales tactic used by the renewal officer. Not all banks nor renewal officers operate the same way, but they often don’t take the time to get to know the clients they are working with never mind offer them options and solutions with the clients’ needs in mind.


If you have a mortgage renewal coming up over the next few months I encourage you to reach out to a mortgage professional to look into your options. Your renewal is the best time to make changes to your mortgage so it is important to invest some time to make sure you make the decision that is best for you, not your bank.

Tracy Head

Mortgage Broker

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