Renewals · refinances · using your home equity
Whether your renewal is coming up soon, or you're thinking about tapping into your home equity to pay off debt, fund a renovation, or plan for a future purchase, the most important thing you can do before signing anything is understand your full range of options.
Here's something to know about how I work: not every conversation ends with me doing your mortgage. I'm the type of broker who will tell you to go back to your bank if that's what's going to give you the best outcome. Sometimes the best advice I can give you is to take the market data we've reviewed and use it to negotiate harder where you already are. That's still a win in my books.
My approach is advice first. I'm here to give you honest market context, help you compare what you've been offered to what's actually available to you, and make sure the decision you make is the right one for your full financial picture, not just the mortgage in isolation.
If working with me turns out to be the right move, great. If you walk away with the information you need to push back with your bank, also great. Either way, you leave the conversation more informed than when you started.
Your renewal is coming up and you've received a rate offer from your bank.
You want to know if it's competitive before you sign on the dotted line. Maybe your bank is the right answer. Maybe it isn't. Either way, you deserve to compare what they've offered to what's available in the market. Sometimes a 15 minute conversation gives you the leverage you need to negotiate a better deal where you already are. Sometimes it reveals a better option somewhere else.
You have equity in your home and you want to use it wisely.
Maybe you've got high interest debt you want to consolidate into your mortgage. Maybe you're planning a renovation. Maybe you want to set yourself up to buy another property in the next few years. Any time you're tapping home equity, the strategy matters. The right structure can save you thousands of dollars and put you in a stronger long term financial position. The wrong structure can be expensive.
You're not sure if a refinance even makes sense for you.
You've heard about people consolidating debt or pulling out equity, but you don't know if it would actually work for your numbers. Let's run the math together and figure it out honestly. If it makes sense, we'll map out how to make it happen. If it doesn't, you'll walk away knowing exactly why.
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I recommend starting about 6 months ahead of your renewal date. We can lock in a rate up to 4 months before your renewal, but sometimes there's prep work that needs to happen before we even submit the application. Anywhere between 4 and 6 months out is ideal, and ideally no later than 1 month before your renewal so we have enough time to do the work properly.The actual refinance or transfer process itself usually takes 30 to 45 days once we submit, depending on the lender, your situation, and how quickly we can get the necessary documents together. I'll keep you informed every step of the way.The worst case scenario is being blindsided at the last minute because the renewal snuck up on you. If we ever do need a little more time, many lenders will let you renew into an open term, which keeps things flexible while we finish the transaction with a new lender.
It depends on what we're doing. A straight transfer with no additional funds is usually the cheapest option, with minimal costs. A refinance is more involved because there are title changes happening, so you can expect legal fees, an appraisal, and a few other items.The fees that apply to your specific transaction are discussed up front so there are no surprises later.
Generally no. Adding new funds to your mortgage is treated as a refinance, not a renewal.A renewal means no new funds and you keep the same contractual amortization. For example, if you bought 5 years ago on a 25 year amortization, you now have 20 years left at renewal, and that 20 year amortization carries forward.A refinance gives you more flexibility. You can access new funds and you can change the terms of your mortgage. That same 20 year amortization could potentially be stretched back out to 25 or 30 years to ease your monthly cash flow.
Refinances in Canada are capped at 80% of your property's value. So you can do some quick math at home to see where you stand.Start by estimating what your home would sell for today. A rough estimate is fine here, just be honest with yourself. Multiply that number by 80%. That gives you the maximum mortgage amount you could potentially access through a refinance.Then subtract what you currently owe on your mortgage (including any second mortgages, lines of credit, or other financing tied to your home). If there's a gap between what you owe and what you could potentially access, this is a case where a refinance might be worth exploring.
This is very different depending on the type of rate that you selected at the time you obtained your mortgage. If you currently have a variable rate, your penalty is usually 3 months interest. If you have a fixed rate, the penalty can range much more widely depending on your lender and how long is left on your term.The best way to find out is to contact your lender directly and ask "If I were to pay off my mortgage today, what would my penalty be?" That's a great place to start, and from there we can figure out whether breaking early makes financial sense.
The short answer is yes, provided you have enough equity in your home and you otherwise qualify. There are usually multiple ways to structure this, and it's not one size fits all. The right structure depends on your overall financial picture, what debts you're consolidating, and what your goals are afterward.
Refinancing may cause a slight dip in your credit score due to the hard inquiry when you apply for a new loan. This is true for any type of credit you apply for, there will always be a small impact temporarily to your credit score.
However, if you manage your finances responsibly afterward, such as making timely payments on your new mortgage, your score can recover and often will improve beyond where it started before the refinance was done.
Two ways to begin. Pick what feels right for where you're at.
Book a 30 minute call. If you're not sure what path makes sense, this is the best first step.
Start your application directly. We'll set up the call from there.
Either way, we'll end up having that conversation. It's just a question of which one comes first.