What Do I Do With My Mortgage?

Tracy Head • July 14, 2023

The question I am fielding most often right now is “what do I do with my mortgage?”. Clients with mortgages coming up for renewal are seeing rates almost triple what they were paying at their last renewal.


Prime went up another .25 per cent this week which puts it at 7.2 per cent now. Clients who are sitting in variable mortgages (including myself) are continually questioning whether they should stay the course or be looking to lock into a fixed rate mortgage.


Clients who have mortgages coming up for renewal are understandably concerned about what type of rate they will be renewing into and what their payments will look like. Clients are still purchasing homes. Many seem to have confidence that rates will start trending down soon. I’m seeing more clients opt for two or three year terms as compared to automatically choosing a five year term. What has changed for clients that are purchasing is their maximum purchase price.


By raising interest rates the government is trying to slow inflation. In May we saw the annual inflation rate drop to 3.4 per cent, down from 4.4 per cent in April. This is the lowest it's been since June 2021. Many people took a deep breath and felt that maybe things were turning and we were done with rate hikes for a bit.


This has proven not to be the case.


If you are currently shopping for a home based on a rate hold or calculations from several months ago, I encourage you to double-check with your mortgage person to make sure you still qualify for the same size mortgage. Rate holds are generally good for either 90 or 120 days and your new mortgage needs to finalize within that time frame. Some clients think they just need to have an accepted offer to purchase within the rate hold period and may get caught not qualifying for the same amount now.


For people in a variable rate mortgage who are debating locking in to a fixed rate, remember that you will have to choose a term that has the same amount of time outstanding as is left on your current mortgage (or longer), so please take the time to have a thorough discussion with your mortgage person to make sure this is a wise decision for you.


The mortgage world is definitely challenging for many right now. My hope is that you make thoughtful, educated decisions as opposed to knee-jerk reactions. The right decision for you is based on your financial situation and future plans. This may mean locking in for some stability with a guaranteed rate, or it may mean staying flexible if you have plans to sell or move over the next few years.

Tracy Head

Mortgage Broker

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Conditions of Mortgage Financing

By Tracy Head • May 5, 2025
When I work with clients that say they are writing an offer on a private sale I always talk about the benefits of working with a realtor. Realtors do so much legwork that happens behind the scenes that clients aren’t even aware of. Most times it is challenging on my end when clients try to tackle the process of writing an offer on a private sale themselves. I joke and say I am going to charge them an extra fee because of the additional work it creates on our end. I don’t actually charge a fee to be clear but I am only half kidding. When you start down the road of buying a home there are many new and unfamiliar terms you may hear. Whether you are working with a realtor or not, arguably some of the most important things you need to learn about are the “subject to” conditions to include in your offer to purchase. When you write an offer to purchase a home, your realtor will offer guidance as to the conditions you include. Common conditions you will see are:  Subject to arranging suitable financing  Subject to a satisfactory home inspection  Subject to arranging home insurance  Subject to review of strata documents  Subject to the sale of your current home If you are purchasing a rural property or are in a unique situation you may also see:  Subject to a water potability test  Subject to an inspection of the septic system  Subject to the seller finding a suitable home to purchase These lists are not all-encompassing by any means. The purpose of adding conditions to your offer is to protect you in case there are any issues with the home you are looking to purchase. In previous columns I’ve written about the potential dangers of writing a subject-free offer. The high- level, quick position is that if you write a subject-free offer you’d better have cash on hand to buy the home. I have worked with several clients over the last few months that have written private offers. We do absolutely everything ahead of time to try to ensure they will be successful with their financing. These files stress clients more than you can imagine. They have to either find templates to fill out or pay a lawyer or notary to prepare the documents for them. Either way they need to quickly learn about the conditions I listed above and understand key dates involved in the buying process. The clients need to deal directly with the sellers on any issues that may arise. When you are working with a realtor they handle these issues on your behalf. A knowledgeable realtor also helps avoid issues by taking any of the personal contact and emotions out of any potential areas of conflict. Make sure you do your due diligence and have your ducks in a row as you move forward with an offer to purchase whether writing an offer with a realtor or on your own. Now that the sun has come out and the election is over I’ve seen my clients more actively shopping which is encouraging. As always, my advice is to work with a realtor that you are comfortable with and who knows your area well.

Not all lenders are created equal

By Tracy Head • April 21, 2025
Not all lenders are created equal Just as no two clients are the same, not all lenders are created equal. For the majority of clients getting the best interest rate is their primary concern. For me as a broker it is as important to find a lender that provides a smooth process from start to finish and excellent customer service once a mortgage has finalized. What do I mean by this? When new lenders pop into the mortgage market they often offer low interest rates or better compensation to encourage mortgage brokers to send files their way. Sometimes these new lenders are amazing, and sometimes not as much. Once in a while more established lenders will offer brilliant rates in order to increase the number of mortgages they have on the go. We see lenders float in and out of the competitive rate market based on how much money they have available to lend at any given time. While this can be great for clients, it can also be a nightmare. If a lender does offer rates much lower than other lenders they end up flooded with applications. They may or may not have the staff / staff with expertise to handle larger volumes and increased time pressures. If we are working on a refinance with flexible dates this isn’t necessarily a problem. If we are working on a purchase application with deadlines this can become stressful for all involved. On top of that lenders have different processes for handling the legal paperwork that goes to your lawyer’s office. Some lenders handle everything in-house and have very responsive teams to handle getting the documents to your lawyer and addressing any changes that need to be made. Other lenders hire third-party service providers to produce their documents and this adds an extra day or two to the process. As a broker I try to learn about my clients’ longer term plans and find the right fit lender-wise. I look at lenders’ policies for portability, pre-payment options, flexibility with respect to their guidelines, broker support, and equally as important client service experience after the mortgage finalizes. Does the lender have a portal? Will they allow me as a broker to help my clients or do they require clients to work with them directly for any changes? We sent applications to two newer lenders over the last month because they had fantastic rate specials available. Both files ended up being very stressful as we were down to the wire waiting for mortgage instructions to be sent to the clients’ respective lawyers. I prefer not to have to deal with last-minute stress on my files.  Rate is of course incredibly important to your long-term financial health. In my mind a smooth process before and after your purchase or refinance is also important. There are many considerations that go into choosing the right package for our clients. My recommendation one day may change the next depending on both your situation and what I am seeing behind the scenes with various lenders. I hope you had a beautiful Easter weekend!!