What Do I Do With My Mortgage?

Tracy Head • July 14, 2023

The question I am fielding most often right now is “what do I do with my mortgage?”. Clients with mortgages coming up for renewal are seeing rates almost triple what they were paying at their last renewal.


Prime went up another .25 per cent this week which puts it at 7.2 per cent now. Clients who are sitting in variable mortgages (including myself) are continually questioning whether they should stay the course or be looking to lock into a fixed rate mortgage.


Clients who have mortgages coming up for renewal are understandably concerned about what type of rate they will be renewing into and what their payments will look like. Clients are still purchasing homes. Many seem to have confidence that rates will start trending down soon. I’m seeing more clients opt for two or three year terms as compared to automatically choosing a five year term. What has changed for clients that are purchasing is their maximum purchase price.


By raising interest rates the government is trying to slow inflation. In May we saw the annual inflation rate drop to 3.4 per cent, down from 4.4 per cent in April. This is the lowest it's been since June 2021. Many people took a deep breath and felt that maybe things were turning and we were done with rate hikes for a bit.


This has proven not to be the case.


If you are currently shopping for a home based on a rate hold or calculations from several months ago, I encourage you to double-check with your mortgage person to make sure you still qualify for the same size mortgage. Rate holds are generally good for either 90 or 120 days and your new mortgage needs to finalize within that time frame. Some clients think they just need to have an accepted offer to purchase within the rate hold period and may get caught not qualifying for the same amount now.


For people in a variable rate mortgage who are debating locking in to a fixed rate, remember that you will have to choose a term that has the same amount of time outstanding as is left on your current mortgage (or longer), so please take the time to have a thorough discussion with your mortgage person to make sure this is a wise decision for you.


The mortgage world is definitely challenging for many right now. My hope is that you make thoughtful, educated decisions as opposed to knee-jerk reactions. The right decision for you is based on your financial situation and future plans. This may mean locking in for some stability with a guaranteed rate, or it may mean staying flexible if you have plans to sell or move over the next few years.

Tracy Head

Mortgage Broker

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I know this is a dumb question but

By Tracy Head • May 19, 2025
I know this is a dumb question but ….  I should probably know this already …. I’m sorry to ask so many questions but …. So many times clients start out with one of these statements. They feel like they should have a better understanding of the mortgage process or terminology. The truth is that buying a home is not a simple journey. Applying for a mortgage is not a cake walk. And even if you’ve been through the process in the past the goal posts seem to move faster than you can keep up. One of the reasons I love (most days) my work is that I am able to spend as much time as I need with my clients helping them understand their financing. When I worked for one of the chartered banks in a previous life I was so tightly scheduled that when our time was up that was it. Someone else had an appointment that I needed to be on time for. Clients have different learning and communication styles. Some come well-versed and understand the mortgage process; others have not done any research and need a lot of hand-holding. My goal is to make sure that by the time they are signing their legal paperwork in front of their lawyer my clients understand the decisions they have made and the rationale behind them. Whether it is the first time you are buying a home or you are looking to refinance your current mortgage it is important that you find a professional to work with that is patient and non-judgmental. In a beautiful world you connect with someone that has bought and sold a few of their own homes and has been working in the mortgage world for a while. It can feel very intimidating to bare your soul to a complete stranger. We often don’t share details of our finances with anyone except our banker / spouse and in some cases I find clients may feel embarrassed about the state of their finances. We see via social media others living lavish lifestyles and somehow feel we should be doing the same. The bottom line is that whether this is your first plunge into the homeownership pool or you are a veteran in the market, it is so important to connect with someone that takes the time to understand your situation and your goals. Knowing your long-term plan and how you handle your finances can help your mortgage professional set you up for success. Please please please make sure you ask all of the questions, even if you think you should know that answers. Guessing that you understand something or bluffing without listening to your mortgage professional’s advice can cause unnecessary grief down the road.

Conditions of Mortgage Financing

By Tracy Head • May 5, 2025
When I work with clients that say they are writing an offer on a private sale I always talk about the benefits of working with a realtor. Realtors do so much legwork that happens behind the scenes that clients aren’t even aware of. Most times it is challenging on my end when clients try to tackle the process of writing an offer on a private sale themselves. I joke and say I am going to charge them an extra fee because of the additional work it creates on our end. I don’t actually charge a fee to be clear but I am only half kidding. When you start down the road of buying a home there are many new and unfamiliar terms you may hear. Whether you are working with a realtor or not, arguably some of the most important things you need to learn about are the “subject to” conditions to include in your offer to purchase. When you write an offer to purchase a home, your realtor will offer guidance as to the conditions you include. Common conditions you will see are:  Subject to arranging suitable financing  Subject to a satisfactory home inspection  Subject to arranging home insurance  Subject to review of strata documents  Subject to the sale of your current home If you are purchasing a rural property or are in a unique situation you may also see:  Subject to a water potability test  Subject to an inspection of the septic system  Subject to the seller finding a suitable home to purchase These lists are not all-encompassing by any means. The purpose of adding conditions to your offer is to protect you in case there are any issues with the home you are looking to purchase. In previous columns I’ve written about the potential dangers of writing a subject-free offer. The high- level, quick position is that if you write a subject-free offer you’d better have cash on hand to buy the home. I have worked with several clients over the last few months that have written private offers. We do absolutely everything ahead of time to try to ensure they will be successful with their financing. These files stress clients more than you can imagine. They have to either find templates to fill out or pay a lawyer or notary to prepare the documents for them. Either way they need to quickly learn about the conditions I listed above and understand key dates involved in the buying process. The clients need to deal directly with the sellers on any issues that may arise. When you are working with a realtor they handle these issues on your behalf. A knowledgeable realtor also helps avoid issues by taking any of the personal contact and emotions out of any potential areas of conflict. Make sure you do your due diligence and have your ducks in a row as you move forward with an offer to purchase whether writing an offer with a realtor or on your own. Now that the sun has come out and the election is over I’ve seen my clients more actively shopping which is encouraging. As always, my advice is to work with a realtor that you are comfortable with and who knows your area well.