lenders Archives - Janice Leffler

When it comes to renewing your mortgage, many Canadians simply sign their renewal letter without asking any questions, and that can be a costly mistake. As a trusted REALTOR® in the Comox Valley with Royal LePage, Janice Leffler encourages homeowners to take the time to review their options and make lenders compete for their business. By understanding your choices and preparing early, you could save thousands of dollars and secure a mortgage that truly fits your needs.

In this article, Janice outlines the key things to consider before renewing your mortgage.

1. Put a Plan in Place

Don’t wait until the last minute to think about your mortgage renewal. The Canadian Real Estate Association (CREA) recommends reviewing your needs at least four months before your renewal date. Early preparation allows you to compare rates, products, and lenders so you can make an informed decision.

When planning ahead:

Research current market trends, interest rates, and lender products.
Learn about available options, including reverse mortgages.
Assess your financial goals, such as savings, education, or debt consolidation.

The more you know in advance, the better positioned you’ll be to negotiate favourable terms.

2. Do Your Research

Before renewing, take time to understand the various products, features, and rates offered by lenders. Compare both fixed and variable rates and learn how current market conditions may affect your decision.

The Financial Consumer Agency of Canada offers an excellent online resource for up-to-date information about mortgage renewals and common questions.

Your REALTOR® can also provide insight into how your mortgage choices align with your real estate goals, whether you’re staying in your current home or planning a move.

3. Request a Lower Rate

Never assume the rate listed in your renewal letter is the best one available. By law, lenders must send a renewal notice at least 21 days before your term ends — but that doesn’t mean you can’t negotiate.

Ask your current lender for a lower rate or improved terms. Mention any offers from other lenders or mortgage brokers to encourage competition. Lenders often have flexibility, but they won’t offer discounts unless you ask.

4. Consider This a Fresh Start

Your financial situation and the market may have changed significantly since you first secured your mortgage. Job changes, children leaving home, or shifting interest rates can all affect your needs.

Mortgage renewals are a chance to reassess your goals and adjust your mortgage to better suit your current lifestyle. Don’t feel obligated to accept the same product — this is your opportunity to reset and save.

5. Expand Your Horizon

Lenders frequently introduce new mortgage products and incentives that could benefit you, such as:

Better prepayment privileges
Cash back programs
Flexible amortization schedules
Accelerated payment options

Exploring new products can open the door to long-term savings and more financial freedom.

6. You Don’t Have to Renew with the Same Lender

Once your mortgage term expires, you’re under no obligation to stay with your existing lender. Shop around and compare offers — other banks or mortgage brokers may offer lower rates or better terms.

Start looking at your options well before your renewal date, so you’re not pressured to accept a less favourable deal at the last minute.

7. Consider Refinancing

Your renewal date can be the perfect time to refinance and access your home’s equity — without paying early repayment penalties.

You might consider refinancing to:

Consolidate high-interest debt
Fund home renovations
Invest in property or other ventures
Support a child’s education

Refinancing strategically can help improve your overall financial position and save on interest long-term.

8. Don’t Be Intimidated by Fees

Switching lenders may involve some additional costs, such as:

Mortgage discharge and registration fees
Transfer or reassignment fees
Appraisal costs (if required)

Be upfront with your new lender about any fees — many will cover part or all of the expenses to earn your business.

Even if some costs apply, the long-term savings in interest often outweigh the short-term fees. Always ask before assuming a fee will apply.

9. Be Prepared for a Bit More Work

Renewing with a new lender is considered a new mortgage, which means you’ll need to complete an application, verify your income, and undergo a credit check. While it requires a bit more effort, the potential savings and improved terms can make it worthwhile.

10. Keep Your Payments the Same

If your previous monthly payments were comfortable, consider keeping them at the same amount after renewal — even if you qualify for a lower rate. This strategy helps you pay off your mortgage faster and build long-term financial security.

Remember: letting your mortgage renew automatically without reviewing your options can cost you thousands. Be proactive, plan early, and take control of your renewal process.

Ready to Discuss Your Mortgage Renewal?

Whether you’re renewing, refinancing, or buying your next home in the Comox Valley, Janice Leffler of Royal LePage can help connect you with trusted mortgage professionals and guide you toward the best decision for your situation.

Reach out to Janice today for expert real estate advice and personalized support throughout your homeownership journey.

Recent changes in the housing market present exciting opportunities for homebuyers. As your Comox REALTOR®, I can guide you through these updates. A mortgage broker can help you build effective plans to achieve homeownership goals. In this way, you can establish what you are able to afford. This is one way to streamline your search for a property.

Knowing these new rules and guidelines will help with strategy and future goals of climbing the “real estate ladder.”

Expanded amortizations for first-time homebuyers

Starting December 15, first-time homebuyers will have access to 30-year amortizations. This change can be of benefit in two significant ways:

Lower income requirement. By extending the amortization period, the income required to qualify for a home purchase decreases. This means more buyers can meet the necessary criteria.
Reduced monthly payments. A decrease in monthly payments will make homeownership more financially manageable. For instance, on a $600,000 purchase, the monthly payment could drop by approximately $250, providing greater flexibility in budgeting.

Increased insured mortgage cap to $1.5 million

High income, but difficulty saving for a down payment? An increase in the insured mortgage cap to $1.5 million can accelerate your path to homeownership. Previously, purchasing a $1.4 million home required a down payment of $280,000. Now, as of December, clients can potentially purchase the same property with a down payment of about $115,000. This will save a whopping $165,000.00 in upfront requirements.

This change is also advantageous for “right-sizers” who want to downsize. It allows the buyer to allocate more funds from the sale of their larger home toward retirement. Then you can put less down on a new, smaller property. However, you should keep in mind that closing costs, typically between 2 and 4 percent of the purchase price, need to be accounted for in each scenario.

For a $600,000 purchase price, anticipate that clients will need an annual income of approximately $150,000 to meet today’s stress-test requirements.

Switching lenders at renewal: A business opportunity awaits from mortgage changes in BC real estate

While you may not initially think about how switching lenders can benefit you, it’s essential to understand that mortgages encompass more than just interest rates. The Canadian Mortgage Charter now allows insured mortgage holders to switch lenders at renewal without undergoing a stress test. This change opens up opportunities for borrowers to shop around for better rates and terms, potentially saving thousands of dollars.

Tax-efficient savings strategies around mortgage changes in BC real estate

As well, two important tax-efficient savings methods have emerged that can empower you on your journey to homeownership:

RRSP withdrawal limit increase. The amount that can be withdrawn from an RRSP has increased from $35,000 to $60,000 per borrower. This change provides additional funds for you to put toward your down payment.
First-time home saver account. Introduced in 2023, this account allows you to save $8,000 per year in contribution room, which reduces your taxable income.

Unlike RRSP withdrawals, funds from this account do not need to be repaid and any gains earned within it are tax-free. This account, however, has a sunset clause in 2028, making it vital for clients to act quickly to maximize its benefits.

These recent changes create valuable opportunities for purchasers. Make informed decisions on your path to homeownership. Speak to your mortgage broker about the implications and opportunities surrounding expanded amortizations, increased mortgage caps, flexible lender options, and tax-efficient savings strategies.

Call me if you would like to connect with a competent, knowledgeable, and experienced mortgage broker.

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Things to Consider Before Renewing Your Mortgage