Is your Mortgage Coming up for Renewal?
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According to Mortgage Professionals Canada, 23% of Canadian mortgage holders will renew their mortgage within the next year, and 50% will renew within two years.
If you’re among them — or soon will be — it’s time to start thinking about your mortgage renewal options. Whether you want to reduce monthly payments, access home equity, or explore new mortgage trends, being prepared can help you make the most of your renewal. Here are some tips to put yourself in the best position possible:
- Start early
Reach out 4-6 months before your renewal date. Together, we can review your current mortgage and explore options. Securing a 120-day rate hold now protects you from potential rate increases, giving us time to find the best deal or consider new solutions tailored to your financial goals. - Review your financial goals
Has anything changed since your last mortgage negotiation? Whether you want to pay off your mortgage faster or access equity for renovations or investments, now is the time to align your mortgage with your current priorities. - Consider variable rates
With recent rate cuts from the Bank of Canada, variable-rate mortgages are gaining popularity again. If you’ve been in a fixed-rate mortgage, it might be worth discussing a switch to variable at renewal for potential cost savings. - Leverage your home equity
If you’ve built up equity, you can tap into it to consolidate debt, invest, or fund big expenses like home renovations. We can explore options to access equity while keeping payments manageable. Note that this option is also available outside of renewal time. - Shop around for the best rate
Don’t assume your current lender offers the best deal. Shopping around can help secure a better rate or terms. I can compare multiple lenders and options for you, saving you time and money. - Get pre-approved
If you’re thinking about switching lenders, getting pre-approved can lock in a rate and protect you from increases, ensuring you’re ready when it’s time to renew. - Plan for the future
Renewal is a great time to reassess your plans. Do you need a mortgage with flexible prepayment options, or is paying off the mortgage quickly your main goal? Consider both your short-term needs and long-term goals to choose the best fit.
With a little preparation, your mortgage renewal can open doors to new opportunities and help you build a stronger financial future.