If you’re getting ready for mortgage renewal, the current housing landscape may feel unsettling. Home prices are dropping in major cities like Toronto, Vancouver, and Kitchener-Waterloo, with Toronto’s MLS Home Price Index down 4.4% since December. As inventory rises and buyer demand slows, home values are expected to keep slipping—great for buyers, but potentially problematic for homeowners nearing the end of their mortgage term.
For the 6 in 10 Canadians facing renewal in the next year or two, this shift could mean higher interest rates, tighter refinancing rules, and less equity to work with. If you locked in during the low-rate pandemic window, your monthly payments could jump significantly. Now more than ever, understanding your options—and planning ahead—is the key to protecting your finances.
So what can you do to get a better renewal rate and set yourself up for success?
5 Things You Can Do Right Now to Be Ready For Mortgage Renewal
Check your credit score. Your credit score plays a major role in the rate you’re offered. If it’s lower than you’d like, take time to pay down balances, make payments on time, and avoid new debt. A higher score can help you qualify for better terms.
Review your current mortgage statement. Take stock of your remaining balance, interest rate, and amortization period. Knowing where you stand helps you make informed decisions when comparing new offers.
Reduce your debt load. Lenders will look at your debt-to-income ratio when assessing your renewal. If you can, start chipping away at credit card balances, lines of credit, or car loans to improve your borrowing profile.
Gather your financial documents early. Start collecting your income statements, tax returns, and any documents related to your property. Having this ready will speed up the process if you decide to switch lenders or refinance.
Connect with a mortgage broker now. Even if your renewal date isn’t for a few months, speaking to a broker early gives you time to explore your options, understand your market, and lock in a rate if the timing is right.
How a Mortgage Broker Can Help You Get a Better Renewal Rate
Compare more lenders—beyond your bank. When you renew directly with your bank, you’re often presented with posted rates that aren’t always the best available. A mortgage broker has access to a wide range of lenders, including alternative lenders and credit unions, which may offer more competitive rates or flexible terms.
Negotiate on your behalf. Mortgage brokers are skilled negotiators. They can use their market insight—and your borrowing history—to push for better deals. Whether it’s a lower interest rate, better amortization options, or reduced fees, a broker works in your best interest and gets you ready for mortgage renewal.
Find the right product for your new reality. Maybe your income has changed. Maybe your home value has dipped. A broker will assess your full financial picture and help you find a mortgage that aligns with your current situation—not the one you were in five years ago.
Help you switch lenders smoothly. If your current lender isn’t offering favourable terms, a broker can walk you through switching to a new one. They’ll break down the costs, benefits, and steps involved, so you’re not left guessing.
Offer strategic timing advice. With rates and home values constantly shifting, timing your renewal or early refinancing can make a difference. A broker can help you decide whether it’s worth locking in early or riding out a few more months.
Explore alternative financing if your lender rejects your renewal. If your financial situation has changed significantly or your property value has dropped, your current lender may choose not to renew your mortgage. A mortgage broker can step in to help you secure financing through an alternative lender. These lenders are often more flexible in their approval criteria and may be open to working with borrowers who don’t qualify through traditional banks.
Be Ready For Your Mortgage Renewal. Give Me A Call To Get The Best Rates and The Ideal Options For You.
In a market like today’s, doing nothing could cost you thousands. Be ready for your mortgage renewal by working with a certified mortgage broker who’ll give you a clear strategy and a better chance at securing a rate that protects your home and your financial health.
As an experienced mortgage broker in Simcoe County, I can guide you through your options and help you find the best mortgage rates for your renewal. Ready to talk options? Give me a call at 705-315-0516 or book a free consultation today.