Four Things You Need to Know Before You Renew Your Mortgage

Marci • May 26, 2014

When it comes time to renew your mortgage, there is more involved than might first meet the eye. What might seem like a simple trip to your bank to sign a few documents – though it can sometimes be that simple – can often be much more complex. You should make sure that you clearly understand what goes into your mortgage renewal before you head to the bank, especially when looking at the opportunity for a change and potentially greater savings.

The Posted Rate Isn’t the Best Rate

Understanding that the posted rate at your bank isn’t the best rate they can offer is key to obtaining a better interest rate when renewing your mortgage. There certainly isn’t anything wrong with asking for a better rate either, and shopping around to see what other banks and institutions can offer you is also recommended. Make sure to do your research and shop around before you start to negotiate your rate with your bank.

Being Loyal May Make No Difference

Contrary to common belief, being a loyal customer to a bank and renewing with your existing institution will likely make no difference as to the interest rate you are offered. On the contrary: often you can actually obtain a better rate if you move to a new bank or institution to renew your mortgage as a new customer. Every bank and institution wants to attract new clients, and one of the common advantages of being a new customer is getting a better rate on your mortgage renewal. So when it comes to banking and finances, be loyal to yourself, not your bank.

Read the Fine Print

It can be easy to become careless when renewing your mortgage simply because you’ve been through the process before, but you should be wary of this. Make sure you read the fine print, and understand that the cheapest mortgage isn’t always the best one. Make sure that you clearly understand the penalties involved with the mortgage, and ensure that you have the ability to pay extra on your mortgage should you wish to do so. Before you sign anything, check the terms carefully.

A Broker Can Likely Offer You Better

Mortgage Brokers can more often than not offer better rates and options to their clients than banks can because brokers have the ability to connect with various institutions and credit unions in order to “shop around” the client’s file and achieve the best option for them. Banks, on the other hand, are much more limited with rules and regulations, and can thereby generally offer only their posted rate with some exceptions for preferred clients. Using a broker also means that you can obtain longer amortization periods on mortgages, which can significantly reduce your monthly payments and help your monthly cash flow.

Even if you’ve been happy with your mortgage over your previous term, you should still consider what your other options are. More likely than not, things in the mortgage and real estate market worlds have changed since you last renewed your mortgage, and there might just be something better out there for you. So get in touch with a mortgage professional directly! You can reach me by email with any of your questions.

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Bank of Canada Holds Rate at 2.25% — March 18, 2026

By Marci Deane • March 18, 2026
The Bank of Canada announced today that it is holding its target for the overnight rate at 2.25%, with the Bank Rate at 2.5% and the deposit rate at 2.20%. For anyone watching the mortgage market — whether you're renewing, purchasing, or simply keeping an eye on borrowing costs — here's a breakdown of what was announced and what it may mean for you.

Is Now the Right Time to Buy? A Look at Canada's 2026 Housing Market

By Marci Deane • March 17, 2026
For many Canadians, the dream of homeownership has felt like a moving target. After years of market volatility, shifting interest rates, and economic uncertainty, you might be wondering: is 2026 finally the year to make a move?

Everything You Should Know Before Buying a Home

By Marci Deane • March 11, 2026
Thinking About Buying a Home? Here’s What to Know Before You Start Whether you're buying your very first home or preparing for your next move, the process can feel overwhelming—especially with so many unknowns. But it doesn’t have to be. With the right guidance and preparation, you can approach your home purchase with clarity and confidence. This article will walk you through a high-level overview of what lenders look for and what you’ll need to consider in the early stages of buying a home. Once you’re ready to move forward with a pre-approval, we’ll dive into the details together. 1. Are You Credit-Ready? One of the first things a lender will evaluate is your credit history. Your credit profile helps determine your risk level—and whether you're likely to repay your mortgage as agreed. To be considered “established,” you’ll need: At least two active credit accounts (like credit cards, loans, or lines of credit) Each with a minimum limit of $2,500 Reporting for at least two years Just as important: your repayment history. Make all your payments on time, every time. A missed payment won’t usually impact your credit unless you’re 30 days or more past due—but even one slip can lower your score. 2. Is Your Income Reliable? Lenders are trusting you with hundreds of thousands of dollars, so they want to be confident that your income is stable enough to support regular mortgage payments. Salaried employees in permanent positions generally have the easiest time qualifying. If you’re self-employed, or your income includes commission, overtime, or bonuses, expect to provide at least two years’ worth of income documentation. The more predictable your income, the easier it is to qualify. 3. What’s Your Down Payment Plan? Every mortgage requires some amount of money upfront. In Canada, the minimum down payment is: 5% on the first $500,000 of the purchase price 10% on the portion above $500,000 20% for homes over $1 million You’ll also need to show proof of at least 1.5% of the purchase price for closing costs (think legal fees, appraisals, and taxes). The best source of a down payment is your own savings, supported by a 90-day history in your bank account. But gifted funds from immediate family and proceeds from a property sale are also acceptable. 4. How Much Can You Actually Afford? There’s a big difference between what you feel you can afford and what you can prove you can afford. Lenders base your approval on verifiable documentation—not assumptions. Your approval amount depends on a variety of factors, including: Income and employment history Existing debts Credit score Down payment amount Property taxes and heating costs for the home All of these factors are used to calculate your debt service ratios—a key indicator of whether your mortgage is affordable. Start Early, Plan Smart Even if you’re months (or more) away from buying, the best time to start planning is now. When you work with an independent mortgage professional, you get access to expert advice at no cost to you. We can: Review your credit profile Help you understand how lenders view your income Guide your down payment planning Determine how much you can qualify to borrow Build a roadmap if your finances need some fine-tuning If you're ready to start mapping out your home buying plan or want to know where you stand today, let’s talk. It would be a pleasure to help you get mortgage-ready.