Your Mortgage Renewal Is Coming: 7 Moves to Make Before You Sign

For years, Canadians were warned about the mortgage renewal wave.

Now, for many homeowners, that wave has arrived.

Millions of Canadian mortgages have been renewing after borrowers locked in historically low rates in 2020 and 2021. For homeowners coming off rates below 2%, even a relatively modest increase in their mortgage rate can create a meaningful change in their monthly payment.

But here’s the mistake we see too often:

Treating renewal as a paperwork exercise instead of a financial planning opportunity.

When your mortgage comes up for renewal, you aren’t simply choosing a new interest rate.

You’re deciding how your mortgage fits into the next few years of your financial life.

Here are seven things to consider before signing your renewal offer.

Why Your Mortgage Should Be Built Backward From Your Exit Strategy

Most people choose a mortgage by looking at what works today.

What rate can I get?

What payment can I afford?

How much will the bank approve?

Those questions matter. But they’re only part of the mortgage decision.

A mortgage is rarely going to stay exactly the same for the next 25 or 30 years. You may sell your home, move, refinance, access equity, buy an investment property, receive a large increase in income, or approach retirement.

So instead of asking only:

“What’s the best mortgage for me today?”

A better question is:

“Where am I likely going, and how should my mortgage be structured to help me get there?”

That’s what we mean by building a mortgage backward from the exit.

The Burn Your Mortgage Podcast: Rent to Own – Making the Dream of Homeownership Come True in Today’s Real Estate Market with Alfonso Salemi

In my interview with Alfonso, we discuss what is Rent to Own (Rent to Home), why Rent to Own is more relevant now than ever before, and how to earn a great ROI by investing in Rent to Own.