Tips on Renewing Your Mortgage

Tips on Renewing Your MortgagePurple Interest Rate Image

Excellent article in the January 12, 2024 Calgary Herald, written by Joel Schlesinger. This is paraphrased from his article. Here is the link (

An RBC report says six in 10 mortgages with major banks are due in 2024 and 2025. Are homeowners positioned to weather the higher rates upon renewal? Here are some tips to navigate your renewal:

  1. Uninsured (CMHC-insured) mortgages can get better rates than originally negotiated.
  2. No stress test required upon renewal. If you renew with the same lender, then you don’t need to demonstrate you can support a mortgage 2% higher than the offered rate.
  3. Extend the amortization. Rather than paying higher amounts monthly based on a 25-year loan period, try for a longer amortization, such 30 years. This will make your monthly payment smaller and more manageable.
  4. Get a shorter term. If the short to mid term looks like rates will finally go down, try a 2 or three year term and anticipate rates dropping. Also, a 5 year rate may be higher than a shorter term currently.

These are tips only and you should talk to your lender or a qualified mortgage broker before deciding. Read the article to get the full picture.

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