The changing mortgage world

Tracy Head • September 13, 2022

One night last week, I met with several other brokers after a learning session we attended. The group included brokers from B.C., Alberta and Ontario.


Our evening included a great discussion about the changes we are seeing in our mortgage applications these days.


It is rare for most of us to see a straightforward application where all of the pieces line up. The common theme around the table was how more often than not, our clients are having to consider different ways to qualify for their mortgages.

What do I mean by all of the pieces lining up?


In an ideal world, clients will have squeaky-clean credit with limited consumer debt, have stable employment and have the appropriate down payment saved and ready to go.


For bonus points, they are able to find a home they love in their price range and preferred neighbourhood and negotiate an accepted offer.


More often than not, we are finding that some or most of the pieces don’t line up at first glance.


I am seeing more families buying homes together – several generations contributing to the down payment and coming together so that they have enough income to qualify for the home they want to purchase.


COVID-19 affected many peoples’ finances. Some took advantage of payment deferral options even if they didn’t need to, and that has been questioned by lenders. By virtue of their type of work, many clients went weeks or even months with reduced or no income, which led to bumps in their credit.


With interest rates rising the goal post has been moved a little further away so either more income or a larger down payment is needed to qualify for the same mortgage amount.


Our conversation turned to financial management and savings habits. We talked about different ways to build your savings and the importance of having a safety net set aside for the unexpected things life throws at us.


We then shifted into different options for helping clients qualify for the mortgages they need. What was particularly interesting to me was that regardless of the province or city we are working in, these brokers are all experiencing a sense of frustration with how clients seem to be facing more and more barriers to entering the housing market.


I was grateful for this conversation as it reinforced that, as brokers, we do have many tools and products available to help our clients get into their new homes.


Although interest rates are rising, housing prices are dropping in many markets. Even with higher rates, based on lower purchase prices we are starting to see the scale levelling out a little with monthly payments.


If you have been concerned about affordability with rates on the move it is a great idea to reach out to your mortgage person to see what you qualify for before you head out shopping.

Tracy Head

Mortgage Broker

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Mortgage Crisis

By Tracy Head • September 5, 2025
A wise broker friend of mine once told me there is no such thing as a mortgage emergency. I think this may depend on whose perspective this is. I’ve thought about her statement over the years. I think what constitutes a mortgage emergency really depends which end of the transaction you are on. One situation I run into regularly is clients who have left dealing with their mortgage renewal until the bitter end. This doesn’t necessarily constitute a mortgage emergency if you are not planning to make any changes to your mortgage and you intend to stay with the same lender. However, if you are in a private mortgage that was intended to be a short-term solution leaving your renewal until the bitter end can put you in a precarious position. Not all private lenders automatically offer renewals. Some charge a significant fee to renew for another term. Some will renew but dramatically increase your rate. If your plan was to move to a traditional lender once your private mortgage comes up for renewal this process can take weeks and in some case months. Depending on your situation a refinance to pay out your private mortgage can be very challenging right now with stricter qualifying guidelines and higher interest rates. Sometimes clients are proactive with their plan to move from a private mortgage and we run into problems and additional document requests from the new lender or challenges like delays in getting appraisals done. Whether you are in a private mortgage or your mortgage is with a traditional lender I suggest you start looking into renewal options about six months ahead of your maturity (renewal) date. We can lock down an interest rate hold for you four months ahead of your maturity date but I love to have a conversation with my clients about six months prior so we can develop a plan as to how we will handle their upcoming renewal. Not all lenders offer an open mortgage at renewal so if you dawdle too long you may end up locked in with your current lender for a bit longer. If you have left your mortgage renewal until it is right around the corner don’t panic. Many lenders do offer an open mortgage so you can opt for this to buy yourself some time if you are planning to make any changes to your mortgage. Take some time to evaluate your options. Small tweaks can potentially make a significant difference to your bottom line so it is key to work with a professional that has your best interests at heart.

Early Renewal

By Tracy Head • August 27, 2025
Does an early renewal make sense? 2020 was a very busy year for home buying and mortgages. This means that 2025 is and has been a busy year for mortgage renewals as the majority of clients seemed to choose five year terms in 2020. I’ve had lots of conversations with my own and new clients about whether it makes sense to renew early. Each conversation is slightly different based on client needs and their individual circumstances. Most of the time I suggest that clients stay with their current lenders until their renewal dates because their current interest rates are anywhere between 1.6 per cent and 2.79 per cent. If you don’t need to make any immediate changes it makes the most financial sense to stay put until your term runs out. We can start the process of either switching or refinancing mortgages four months ahead of your renewal date and lock in a rate for you. As a generalization, when people ask about doing a straight switch (not adding any money to their mortgage) I will do a survey of what interest rates are available so they can go back to their lender to try to negotiate a great rate. Time and time again I’ve worked with clients on switches for them to cancel at the last minute as their current lender finally sharpens the pencil rather than lose the client. This is why I always try to help people negotiate with their current lender rather than put everyone through the work of having a new mortgage approved. If clients are wanting to add money to their mortgage to pay out consumer debt or pay for home renovations that changes things a bit. Some lenders are more aggressive with their refinance rates so it makes sense to make a move. Another situation has popped up this week that has had me crunching numbers for multiple clients. One of my favorite lenders came out with a quick-close rate special that is pretty hard to pass up. The fine print is that the new mortgage has to finalize within thirty days. I have been working on a refinance at renewal for clients that is set to close at the beginning of November. I took a look at how their current lender calculates the payout penalty when they are this close to renewal. It turns out they charge daily interest instead of a three-month interest penalty or interest rate differential. So I did the math. If we pay out early to take advantage of this great interest rate their payout penalty is around the $1000 mark. Over the term of the new mortgage they will save approximately $5500 in interest cost and their monthly payment will be about $85 per month less. Even after they pay out the penalty to move a bit early they will still be $4500 ahead over the term of their mortgage. This is one of the few times I’ve recommended that it makes sense to move forward ahead of the renewal date.  If you have a renewal coming up over the next few months I’d say it’s a good idea to connect with your mortgage person to look at what rates are available now and figure out whether it makes sense to consider making a move sooner rather than later. Lenders will pop up with rate specials from time to time so it is worth having your mortgage professional keep an eye open for you as your renewal date comes closer. It may just save you a significant amount of money.