A significant percentage of Canadian mortgages are coming up for renewal in 2024.

Tracy Head • November 17, 2023

A significant percentage of Canadian mortgages are coming up for renewal in 2024. Considering the low rates we’ve enjoyed for the last few years clients are in for a bit of shock with where mortgage rates are now.


Although the Bank of Canada held prime steady with the last rate announcement, we are starting to see fixed rates trend down which is a relief. A significant change has been rolled out with how lenders are qualifying clients who are doing switches

at renewal (no new funds added). With the implementation of the stress test in 2016 we had to start qualifying clients at their contract rate (the interest rate the lender was offering) plus two per cent, or the Bank of Canada Benchmark rate, whichever was higher. When mortgages that were in place prior to the new rules came up for renewal we could qualify them at the contract rate or the Benchmark rate, whichever was higher.


Mortgages put in place after 2016 have all been coming up for renewal for two years now and these clients have been disadvantaged by the stress test calculation for switches at renewal. Many lenders have now adopted the recent change to the policy and we are now able to qualify clients at their contract rate or the Benchmark rate, whichever is higher, without adding the two per cent buffer to the contract rate.


Several clients I chatted with prior to this change were essentially stuck with what their current lender offered them for their renewal because they did not qualify anywhere else when we used current rates plus the two percent calculation.

And another positive note is what we are seeing with the fixed rate mortgage products.


Traditionally I see lenders offering rate specials through November and December during the slightly slower winter months, then popping rates up a bit as we start the new year. This year seems no different. Over the last two weeks I have seen rate reductions almost every day.


As a broker, one of the things I do for my clients is watch what interest rates are doing. When I am working with clients who are purchasing a home or refinancing, I choose lenders that are willing to continue to reduce my clients’ interest rates up until (shortly before) their closing date if the lenders drop their posted rates.


What can this mean in dollars and sense?


Two years ago some of my favorite clients were upsizing and buy a new home in Kelowna. Their mortgage new mortgage was going to be $700,000. Three weeks before their closing date rates started to drop. Three times the lender reduced their rate so that at closing time they were .25 per cent lower than the contract they originally signed.


The lower rate meant a savings to them of $7900 over their five year term.


If you have a renewal coming up over the next four months, I’d suggest looking into your options before we move into the new year. You should be able to have an interest rate held for 120 days which will provide some stability should rates trend up again once we are into the new year.

Tracy Head

Mortgage Broker

GET STARTED

Marital Breakdown

By Tracy Head • October 18, 2025
One topic I haven’t tackled for a long time is marital breakdowns. When you are working your way through what is arguably one of the most difficult times of your adult life it’s important to know that you have options. There is a program available for refinancing your home specifically for spousal buyouts. Under this program we can refinance your home back up to 95 per cent of the value of the home and use the new funds to pay out your ex-partner and pay out marital debts (provided this is written into your separation agreement). Qualifying this to say that we can refinance to 95 per cent if the value of your home is under $500,000. If the value of your home is over $500,000 we need to ensure you have 5 per cent of the first $500,000 and 10 per cent of any value over the $500,000 left as equity in your home. It’s a small distinction but in the Okanagan the second calculation is the one I see the most. With recent changes to the First Time Home Buyer’s program we can now extend the amortization out as far as 30 years if needed to make the numbers work. It is important to note that this program is an insured program meaning that a premium is added to your mortgage so its important that you work with someone who is familiar with this program. You will require a finalized separation agreement to refinance to pay out the other party.  If you have significant equity in your home and we can make the numbers work a traditional refinance is also an option. In this case we can only increase your mortgage to 80 per cent of the value of your home but there is no default insurance premium required so this is usually the preferable option. A question to ask yourself is whether it makes sense to refinance your current home or to sell and buy a new home. The list of pros and cons will be different for each person, but one of the most important things to consider is whether or not you can afford the higher mortgage payment on your own to stay put. Also key to consider is whether or not you need the same space or whether downsizing might be another option. Do you have children that you want to keep in the same area and same school? Is your current home in a convenient location for work, school, and social activities? Or are you needing a fresh start somewhere new? If you find yourself in this situation and are considering your options with respect to refinancing your home I encourage you to reach out to a professional that can help you take a good hard look at your situation. Doing a bit of legwork upfront may help relieve at least one part of the mental load as you work your way through a separation or divorce.

Is this the right time to buy a home?

By Tracy Head • October 4, 2025
Is this the right time to buy a home? Who has your best interests at heart? Buying a home can be either an incredibly exciting experience or a very stressful time. Or it can be a combination of both. Part of the challenge can be committing to the decision to move forward with buying a home. How do you know if you are ready? How do you know if this is the right time to buy? I love working with first-time home buyers. I particularly love when they reach out well ahead of time to do their research and get their ducks in a row. I have been working with one such young lady. She has been watching for the right home to pop up. She fell in love with one of the listings that she viewed and moved forward with an offer. She reached out to her investment advisor to make arrangements to move the funds she needed for her deposit from her investments to her bank account. Oddly he did not reply to her three phone calls nor multiple emails. She was forced to walk into his office to deal with this. When she got there he essentially told her she was foolish for buying a home. She should leave her funds in her investments and continue to save with him. She agonized for a few days and ultimately collapsed her offer. He told her that this house, over the long run, was going to cost her $1,000,000. The purchase price was $650,000. The total of the purchase price plus interest over the long run seemed like an astronomical sum. He persuaded her that she would be better off continuing to rent and that at the end of the same time period she would have over $1,000,000 in her investment account. That’s all well and good in theory. In the meantime she still needs a place to live. And there are no guarantees as to what investments will do over time, nor what property values will do. I did some math to see what this actually looked like long term. We have to make some assumptions that the financial advisor is good at what he does and that her investments will do well over the long term. As a rule real estate appreciates over time and rent increases over time. That being said, here is the math I did. Making some assumptions that the mortgage rate stays the same and your rent never increases: $2400 rent per month x 360 months (30 years) = $864,000 $2833 per month mortgage payment x 360 months = 1,019,880 (monthly payments / I suggest you go bi-weekly to pay off quicker) At the end of 30 years renting you have nothing to show for the $864,000 you’ve paid out. At the end of 30 years paying your mortgage you will have a home free and clear – normally real estate increases in value over time so in theory it will be worth way more than what you’ve paid. If you wait another year to buy $2400 x 12 = $28,800 towards someone else’s mortgage. Here’s the wild card. If you choose to rent and choose to invest in a portfolio instead of buying, even if your portfolio is worth $1,000,000 at the end of the same time frame you need to subtract the $864,000 you paid in rent. This leaves you with a net gain of $136,000. If you had purchased a home, your payments of $1,019,880 would be offset by the value of the home you purchased. In this case, assuming no change in value, you now have a home worth $650,000 paid off. The wild card to run these comparisons is how much you need to invest monthly to accumulate the $1,000,000. Either way, you are making this payment on top of your rent payment. Another wild card of course is what property values and investment portfolios do over time. We know rent will continue to increase and mortgage rates will change but I think it warrants looking at this from another perspective. I am not a proponent of aggressive scare tactics so was disappointed in how this advisor handled his conversation with her.  Some people are more cautious with their financial plans and I appreciate that. Being certain about your long-term goals will help you navigate the path forward that suits your own situation. Make sure you have trusted people in your corner as you make these big life decisions.