FAQs

Self Employed Mortgage

Who is a self-employed borrower?
You! If you’re a contractor, consultant, freelancer or entrepreneur who collects invoices rather than employment pay stubs, you are self-employed. Technically, “self-employed mortgages” don’t exist. You will get approved for the same mortgage as everyone else but, you may have to jump through a few more hoops compared to a payroll employee.
How can I qualify as a self-employed borrower?
The primary difference between self-employed (or commission-based) and salaried employees is that lenders will treat your gross earnings differently. As a rule of thumb, lenders will only use 80% of your gross earnings and the average of last tax year’s income for commissioned sales people, and net income, instead of gross income, for self-employed individuals. `A lender is restricted by Canada Mortgage and Housing Corporation (CMHC) rules to use only the last three years of self-employment income.
What is considered qualifying income?
Self-employed workers typically obtain their mortgage through stated income applications, which require a signed income declaration and proof of self-employment. Stated income is how much you claim to earn. If you keep most of your income inside your company, we can qualify you for a mortgage using the gross deposit of business income over the last 12 months or allowing for retained earnings within your corporation. We can even qualify you with some lenders with as little as six months as business for self.
What income documents will I need?
Lenders will require: Your last two years of full T1 Generals and the associated notices of assessment
  • If incorporated: your whole articles of incorporation
  • If sole proprietor: your business or HST registration
  • Last six months of bank account statements
How long do I need to be in business to qualify for a mortgage?
Most lenders require at least a two-year track record for businesses. Lenders have been known to make exceptions for professionals like doctors and engineers, as well as people starting a new business in an industry where they’ve already had a long career.
If my business produces a seasonal or irregular income, can I still qualify?
Yes, the same income requirements apply as if you earned a full-year income.
Where should I start?
If you are a self-employed individual looking for a mortgage, it would be in your best interest to gather the required income documents and begin a mortgage pre-approval process with us. Contact us to speak with one of our self-employed mortgage specialists to help you organize and obtain the relevant documentation for you. Our digital document collection process simplifies the process, making getting pre-approved as hassle and stress free as possible. Click the "Get Started" button to start your online application.

First-Time Homebuying

Where should I start ?
The best place to start is to determine how much you can afford to borrow. The mortgage amount you qualify for will depend on how much you earn, have saved for a down payment and your outgoing expenses. It's best practice to know how much money you have in your wallet before you start shopping around for properties. You can do this by getting a mortgage pre-approval with us.
Can I really only afford how much online calculators and banks are telling me?
Recent changes to mortgage lending (i.e. the stress test) have made it more difficult to qualify in recent years. But, there’s still hope yet. We use a creative approach to find the solution that’s best for you. As your broker, we have access to a portfolio of over 35 lenders including banks, alternative and private lenders.
Why should I work with a broker vs. a bank?
As your mortgage broker, we represent your interests and take the time to understand your entire story. We’re not tied to one specific lender nor do we have a hidden agenda. We’ll guide you through the homebuying process and give you the advice, strategy and tools you need to succeed as a first time homebuyer. Plus, it’s a service that’s at no cost to you.
What is the minimum down payment?
Minimum down payment for your first home purchase is 5% of the first $500,000 and 10% on anything above that.

Down payments can consist of your savings, RRSP's of up to $35,000 per applicant (first-time homebuyers only or if you've recently separated), gifted down payment, inheritance, and to clarify, can still even be borrowed (i.e from a line of credit or loan).
What is the difference between a deposit and a down payment?
A deposit is a sum of money you pay up front to secure, or commitment to move forward with your accepted purchase and sale agreement. The deposit is typically held in trust by the Buyer's Agent’s real estate office. The down payment is the money that you pay to the seller to be eligible for financing.

The deposit is generally part of the down payment. If the down payment is $40,000 and you give a $20,000 deposit, that $20,000 would count towards the total down payment.
How do I make an offer?
Once you find the house that you want to make home, you’ll work with your realtor to submit your offer to the sellers. With your pre-approval and qualification information you’ll show sellers that you’re serious and confident about your home purchase.
What is a fixed rate mortgage?
A fixed rate mortgage is when the interest rate is set for a predetermined term - usually between 6 months to 25 years. This offers the security of knowing what you will be paying for the term selected.
What is a variable rate mortgage?
A variable rate mortgage is when payments are fixed for a period of one to two years although interest rates may fluctuate from month to month depending on market conditions. If interest rates go down, more of the payment goes towards reducing the principal; if rates go up, a larger portion of the monthly payment goes towards covering the interest.
What is a pre-approved mortgage?
A pre-approved mortgage is an interest rate guarantee from a lender for a specified period of time (usually up to 120 days) and for a set amount of money. The pre-approval is calculated based on information provided by you and is generally subject to certain conditions being met before the mortgage is finalized.

The pre-approval amount is the maximum you may get. It does not guarantee a mortgage for that amount. The approved mortgage amount will depend on the value of the home, your down payment and income information.

Most real estate professionals will want to ensure you have a pre-approved mortgage in place before they take you out looking for a home. This is to ensure that they are showing you property within your affordable price range.
What is the process to get approved?
It’s easy to get started! The first step will be information gathering which will take merely minutes to complete. From there, our team will work hard to underwrite a mortgage pre-approval for you.

We’ll also provide you with an in-depth lender comparison report and discuss every option available to you. You'll also learn about the resources provided and your next steps up to and after your first home purchase.

With our digital mortgage management portal, you can sign-in to your unique profile where you can update your profile, verify information, upload documents, track your loan status and communicate with your advisor, anywhere, anytime.
What are the closing costs?
We will ensure to outline your unique closing costs based on your situation. Some of the associated closing costs may include:

Land Transfer Tax
You will be required to pay a one-time tax based on a percentage of the purchase price of the property and/or mortgage amount. As a first-time homebuyer, you'll enjoy up to a $4,000 land transfer tax credit applied against the total on closing.

If your down payment is less than 20%, then you will need to pay PST on the mortgage default insurance (known as CMHC).

Real Estate Legal Fees, plus Lawyer’s disbursements
These fees will vary from lawyer to lawyer, budget for $2,000 to be conservative.

Home Inspection
$500 to $800. Optional costs but strongly recommended to have it done. It is usually placed as a condition to the Offer to purchase. The inspection may bring to light areas where repairs or maintenance are required. Usually the inspector will provide you with a written report. If they don't, then ask for one.

Appraisal
$300 to $500. An optional cost however some lenders would prefer to appraise the home before granting the loan.
What is mortgage insurance?
Mortgage loan insurance is a type of insurance provided by Canada Mortgage and Housing Corporation (CMHC), a crown corporation, and GE Capital Mortgage Insurance Company, an approved private corporation. This insurance is required by law to insure lenders against default on mortgages with a loan to value ratio greater than 80%. The insurance premiums, ranging from .50% to 3.75%, are paid by the borrower and can be added directly onto the mortgage amount.
How can I get the land transfer tax credit?
First-time homebuyers in Ontario can qualify for a rebate equal to the full amount of their land transfer tax, up to a maximum of $4,000.
Based on the Ontario land transfer tax rates, the rebate will cover the full tax amount up to a maximum home purchase price of $368,333. For homes with purchase prices over $368,333, homebuyers will qualify for the maximum rebate, but will still owe the remainder of their land transfer tax. If you are buying your home with your spouse, but only one of you qualifies for this rebate, you can still receive 50% of the rebate.
What are the qualifications for being considered as a first time home buyer and can I use my RRSPs?
You are considered a first-time homebuyer if you or your spouse or common-law partner have not owned a home in the last for years.

Each applicant can withdraw up to $35,000 from their RRSPs, tax free, to put towards a down payment on your first home. These funds can be used for any homebuying costs including land transfer tax, legal fees, home furnishing, etc.

Your RRSP contributions must stay in the RRSP for at least 90 days before you can withdraw them under the HBP. If this is not the case, the contributions may not be deductible for any year.

You can also withdraw from your RRSP up to 30 days after your home purchase (closing). However, there can only be one withdrawal, whether before or after.

Mortgage Refinance

What is mortgage refinancing?
Mortgage refinancing refers to the replacement of an existing mortgage with a new mortgage. You can use a refinance mortgage to obtain a higher mortgage amount, a different term, a lower mortgage rate, or to change borrowers on the mortgage.
What’s the difference between mortgage renewal and mortgage refinancing?
Mortgage refinancing can be done at any time during your mortgage, whereas a mortgage renewal is when your mortgage term is up for maturity and you need to pick a new mortgage.

Mortgage refinancing allows you to change the term, interest rate, and amount of your existing mortgage. People often refinance to take advantage of a lower interest rate or to take out more cash. A mortgage refinance usually involves a new mortgage application.

A mortgage renewal means you’re selecting a new mortgage. You can reset your interest rate, term, and amount. There is no penalty or cost at the time of renewal. If you are sticking to your existing lender, you do not need any credit application to renew your mortgage.
What are the benefits of mortgage refinancing?
1. Access cash using your home equity
Access up to 80% of your home value. You can use the funds to renovate your home, invest in another property, pay for education, take a vacation or support your business.

2. Lower interest rates
Refinancing into a lower interest rate can reduce the cost of borrowing. We negotiate with over 30 lenders to get the lowest refinance rates.

3. Consolidate debt
Consolidate high interest debts into your refinance mortgage to help lower your monthly payments, pay off debts sooner and improve your credit score.

Mortgages usually have lower rates compared to other credit products, such as personal lines of credit, credit cards, or commercial loans so refinancing your mortgage can be a great way to fund many of your life goals.
When should I refinance my mortgage?
You can refinance at any time. However, before you think about refinancing, you need to ensure you’re the right candidate. If you have less than a year to pay off your mortgage, you shouldn’t. If you’re not offered more favourable terms then opt-out.

Many people choose to refinance at the time of renewal. If you refinance before your current term matures, you may be charged a prepayment penalty. However, if the interest rate saving is greater than the penalty, it may still be worth refinancing even if your mortgage is not up for renewal yet.
How much can you refinance?
How much you can qualify for largely depends on your income and the value of your house, which determines your Loan-to-value (LTV). Estimate how much you can refinance by using our Refinance Calculator. Deciding if mortgage refinancing is right for you can get complicated. We are always happy to help by evaluating your situation and guiding you through the refinancing process.
What are the mortgage refinancing rates?
Refinance interest rates are similar to most conventional mortgage interest rates except that they are usually higher than default insurance mortgage rates. You can get the lowest mortgage refinance rates in under 2 minutes by talking with one of our experienced mortgage advisors. Click Get Started to begin your application or contact us directly.
How much does it cost to refinance?
The main costs for refinancing your mortgage include prepayment penalty/breakage, legal fees, title cost, and appraisal cost. You only need to pay a prepayment penalty if you refinance before your mortgage is up for renewal.

Your refinance may not require a lawyer depending on the complexity of the refinance. Legal costs are typically in the range of $1,000-$2,000. If you do not require a lawyer, there will likely be a “title cost”, which is to change or increase the “lien” the bank has registered on your property.

Second, refinancing requires an updated appraisal report on your property to ensure the value of your home is up-to-date. This is used for the lender to assess your Loan-to-Value. The appraisal report usually costs between $300 to $400 dollars.
Does refinancing impact your credit?
Usually refinancing doesn’t impact your credit. However, if you shop your mortgage rate with too many lenders, your credit file will get “multiple inquiries/hits” from different lenders, which will negatively impact your credit score. That’s why it’s beneficial to use an experienced mortgage broker, who will only check your credit once and then negotiate the best rate with multiple lenders on your behalf. Talk to one of our experienced mortgage advisors today for any questions you may have.

Debt Consolidation

What is Debt Consolidation?
Debt consolidation is debt financing that combines two or more loans into one. A debt consolidation mortgage is a long term loan that gives you access to funds to pay off several debts at once. You’re left with one payment rather than several. It can be a great way to streamline your finances and combat high-interest debt for good.
Why consolidate debt into a mortgage?
Refinancing your existing mortgage into a consolidation loan combines your debts into one payment. If you have high interest loans and you’re only paying the interest rather than the principal this is a great solution to combat debt.

When you refinance, you can get up to a maximum of 80% of the appraised value of your home minus the remaining mortgage. This is equity that you can use towards debt consolidation for example.

Debt consolidation mortgages come with a structured payment plan and an assured pay-off date. Payment schedules vary depending on your agreement: weekly, biweekly, semi-monthly or monthly over a negotiated term. Refinancing fees may apply, such as appraisals, title search, title insurance and legal fees.
Will consolidating my debt improve my credit score?
Definitely. When you have multiple accounts and payments to manage, you are more likely to make a mistake and miss payments. Late or missed payments hurt your credit scores, so consolidating debt into one monthly payment will protect your credit for the future.

By refinancing and complying with the terms of the consolidation plan, your credit score will likely increase significantly within months.
Are there any fees I have to pay for this service?
Typically, the only out of pocket cost associated with this type of service is the appraisal fee, which we can usually avoid.

The appraisal free will cost between $300-500. We'll be seeking approval with an online valuation first at a lower cost. The online valuation is generally accepted; however, if not, a full appraisal is required. Some lenders will reimburse the cost, as well as cover legal fees.

Any other costs such as breakage fee or lawyer fee, if applicable, can come from the process of your refinance (not out of pocket).

Home Equity Line of Credit

What is a HELOC?
HELOC stands for Home Equity Line of Credit. It is a revolving amount of credit that is secured against your home. During the HELOC process, the lender will decide on the amount of your HELOC. Lenders allow total loans (mortgage plus HELOC) of up to 80% of your home’s value. So, if your home is worth $500,000 and your mortgage is $200,000, your HELOC could be as much as $200,000. You can draw from that money at any time, for any reason.
What is the difference between a Home Equity Line of Credit and a Home Equity Loan?
While both a home loan and a home equity line gives you access to the equity in your home, a home equity loan gives you a one-time lump sum of money. Whereas, a home equity line of credit (HELOC) provides convenient, ongoing access to funds when and as you need it. The more equity available in your home the more funds you have available to borrow. A HELOC gives you the freedom and flexibility to use the funds as you need and allows you to repay the line of credit with interest only payments on the funds you actually use.
What can I use a HELOC for?
A HELOC has a unique advantage in that it can be used, repaid, and used again, while only paying interest on the portion of the funds that have been used. A HELOC is a good solution for many funding needs, such as launching or supporting a small business, covering medical and health care expenses, accessing funds for purchasing a second property, financing home renovations, repairs, construction, and all kinds of other household projects.
Is a HELOC or a second mortgage better?
A HELOC is actually a type of second mortgage. The main difference between the two is how you will receive your loan payment. A second mortgage is a lump sum, whereas the HELOC is a line of credit. The HELOC functions like a credit card with a credit limit and minimum monthly payments. You will be required to make fixed-rate payments however, this is typically added to your mortgage principal. For individuals with an existing mortgage, who have good credit and more than 20% equity in their homes, the most affordable second mortgages will be in the form of a home equity line of credit. However, if the homeowner has weaker credit and/or little equity in their property, a second mortgage through a trust company or private lender would be required.
Can I have more than one line of credit?
Yes, you can have multiple home equity lines of credit outstanding, even on the same property, as long as you hold enough equity in your home to meet the lender’s guidelines. If you own multiple properties and have the equity available, you can have as many mortgages and equity lines or loans as you can qualify for. As long as you’re not overleveraged or owe more than your properties are worth, there’s no limit to the number of home equity loans or HELOCs you can have at one time.
How do I qualify for a HELOC
Lender requirements will vary, but here's what you'll generally need to get a HELOC: A debt-to-income ratio that's 40% or less. A credit score of 620 or higher. A home value that’s at least 15% more than you owe. The process of getting a home equity line is similar to any purchase of a refinance mortgage. Here the are the steps we’ll follow: First, we’ll determine whether you have sufficient equity and how much is available for you to borrow. Then, we’ll gather the necessary documentation before you apply to ensure the process goes smoothly. We will present your file to lenders on your behalf and once selected, apply for the HELOC. We will then review the lender’s disclosure statements and begin the underwriting process which can take anywhere from a few hours to a few weeks. The final step is loan closing, when you sign paperwork and the line of credit becomes available. Get started with your mortgage refinance here.

Second Mortgage

What is a second mortgage?
A second mortgage is an additional loan taken out on a property that is already mortgaged. Determination of first, second and third mortgage designation is determined by priority of registration.

What this means is if you have a first and second mortgage on your property and if for some reason you went into default – the mortgage in the first position will recoup their investment first followed by the second mortgage. It’s considered a riskier investment for the lender which is why second mortgages typically have higher interest rates than first mortgages.
How can a second mortgage help me?
Second mortgages are rapidly growing. It’s a great way for homeowners to access equity in your home without being forced to sell or pay a huge penalty when breaking your existing mortgage. Refinancing rules allow you to access up to 80% of the equity in your home.
How can I qualify for a second mortgage?
In order to qualify for a second mortgage in second position, lenders will look at four areas:

Equity. The more equity you have available, the higher your chances of qualifying for a second mortgage will be. If you are purchasing a house, a larger down payment also decreases the risk that a lender takes on.Regular payments towards utilities, telecommunications, insurance, etc, and/or confirmation letter from service provider(s).

Income. Lenders want to verify that you have a dependable source of income, to ensure that you can make payments.

Credit score. The higher your credit score, the lower your interest rates.

Property. Because other factors are risky (i.e. your credit score), lenders need to secure their investment in case you are unable to keep up with mortgage payments.
How does a second mortgage work?
The amount you can borrow will depend on the equity you have in your home. The total of a first and second mortgage can be as much as 80% of your home’s value. Consider you own a property valued at $500,000, and your first mortgage is for $325,000. In this case you’d be able to access $75,000 upon obtaining a second mortgage if approved.

Investment Property

What is an investment property?
An investment or rental property is a residential or commercial property that's leased or rented to a tenant over a set period of time. There are short-term rentals, like vacation rentals, and long-term ones, like those under a one-to-three-year lease.

Residential rental properties are one- to four-family homes, which include:
- single-family homes
- duplexes
- triplexes and
- quadplexes

Types of commercial rental properties include:
- multifamily (apartment complexes)
- industrial (such as a warehouse or self-storage)
- office space
- retail space and
- multi-use

Residential rental properties are more accessible than commercial investments because they’re typically less expensive so less money is required up front, which means that it’s also easier to get financing. Owning and managing an investment property is an active form of real estate investing and can provide positive cash flow and added security for the future.
What is the buying process for an investment property?
First, your realtor will work with you to understand what type of rental may suit your needs and execute the purchase on your behalf. Before seeking out a real estate agent, determine where you want to invest (what is or will be in demand?) and what you want to invest in (the type of property: square footage, number of bedrooms, type of build, amenities and property type).

Second, If you can’t purchase the property all in cash, you’ll need financing. One way to finance an investment property with zero cash savings is by drawing on existing equity available in your home either through a home equity loan, HELOC or cash-out refinance. You may be eligible to borrow up to 80% of the home's equity value to use towards the purchase of a second home.

When it’s for financing a rental property, you’ll find that typical interest rates on a home equity line of credit runs around 3 to 4%, thus making them an affordable option to get started in leveraged real estate investing. However, you still have to be very careful when securing financing for a rental property. Speak to a mortgage professional about which solution will be the best for you.

Next, you may have to make some repairs or renovations to prepare the property for the market. Your property is then marketed, filled with tenants, and actively managed for any ongoing maintenance. How active or passive you are in the day-to-day management of the property is a personal choice. You may decide to manage the rental yourself or hire a property management company to manage it for you.
What is the minimum down payment on an investment property?
The minimum down payment for a rental income property is 20% if you are not occupying a unit in the property as your primary residence.

For up to a duplex while occupying one of the units, the minimum down payment is 5%.

For up to a 3-4 unit rental property while occupying one of the units, the minimum down payment is 10%. Rental income from the non-owner-occupied units can be used as a qualifying income on your mortgage application.
Why is the rate higher on rental properties?
It may come as a surprise that a rental property would yield a higher rate compared to your owner-occupied home. And, the reason is risk exposure. For instance, if you became ill, lost your job or couldn’t work for any reason, you would be less likely to bounce your rental property mortgage over the mortgage of your primary residence.

Most lenders have a 0.25-0.35% rate premium. However, we can amortize up to a 30 year period which yields a lower monthly mortgage payment than a 25 year amortization.
Where should I start?
The first step is to calculate the available equity in your home that we can put towards growing your real estate portfolio, i.e. your net worth.

To calculate, we need a copy of your existing mortgage statement. We'll have one of our real estate experts complete comparable market analysis to confirm the value of your home.

It’s best to start the paperwork and underwriting process as soon you've identified an investment. Not every bank lends to individuals for investment properties so it’s important to secure a lender before the property is under contact.

But, don’t worry about that. All you need to do is click Get Started and we’ll handle the rest.

Home Improvement

What is a HELOC?
HELOC stands for Home Equity Line of Credit. It is a revolving amount of credit that is secured against your home. During the HELOC process, the lender will decide on the amount of your HELOC.

Lenders allow total loans (mortgage plus HELOC) of up to 80% of your home’s value. So, if your home is worth $500,000 and your mortgage is $200,000, your HELOC could be as much as $200,000. You can draw from that money at any time, for any reason.
What is the difference between a Home Equity Line of Credit and a Home Equity Loan?
While both a home loan and a home equity line gives you access to the equity in your home, a home equity loan gives you a one-time lump sum of money. Whereas, a home equity line of credit (HELOC) provides convenient, ongoing access to funds when and as you need it.

The more equity available in your home the more funds you have available to borrow. A HELOC gives you the freedom and flexibility to use the funds as you need and allows you to repay the line of credit with interest only payments on the funds you actually use.
What can I use a HELOC for?
A HELOC has a unique advantage in that it can be used, repaid, and used again, while only paying interest on the portion of the funds that have been used. A HELOC is a good solution for many funding needs, such as launching or supporting a small business, covering medical and health care expenses, accessing funds for purchasing a second property, financing home renovations, repairs, construction, and all kinds of other household projects.
Is a HELOC or a second mortgage better?
A HELOC is actually a type of second mortgage. The main difference between the two is how you will receive your loan payment. A second mortgage is a lump sum, whereas the HELOC is a line of credit. The HELOC functions like a credit card with a credit limit and minimum monthly payments. You will be required to make fixed-rate payments however, this is typically added to your mortgage principal.

For individuals with an existing mortgage, who have good credit and more than 20% equity in their homes, the most affordable second mortgages will be in the form of a home equity line of credit. However, if the homeowner has weaker credit and/or little equity in their property, a second mortgage through a trust company or private lender would be required.
Can I have more than one line of credit?
Yes, you can have multiple home equity lines of credit outstanding, even on the same property, as long as you hold enough equity in your home to meet the lender’s guidelines.
If you own multiple properties and have the equity available, you can have as many mortgages and equity lines or loans as you can qualify for. As long as you’re not overleveraged or owe more than your properties are worth, there’s no limit to the number of home equity loans or HELOCs you can have at one time.
How do I qualify for a HELOC?
Lender requirements will vary, but here's what you'll generally need to get a HELOC:
A debt-to-income ratio that's 40% or less.
A credit score of 620 or higher.
A home value that’s at least 15% more than you owe.


The process of getting a home equity line is similar to any purchase of a refinance mortgage.
Here the are the steps we’ll follow:

1. First, we’ll determine whether you have sufficient equity and how much is available for you to borrow.

2. Then, we’ll gather the necessary documentation before you apply to ensure the process goes smoothly. We will present your file to lenders on your behalf and once selected, apply for the HELOC.

3. We will then review the lender’s disclosure statements and begin the underwriting process which can take anywhere from a few hours to a few weeks.

4. The final step is loan closing, when you sign paperwork and the line of credit becomes available.


Our team of licensed experts are ready to help transform your house into a home.
Click "Get started" to begin your mortgage refinance.

Mortgage Renewal

What is a mortgage renewal?
A mortgage renewal is when your current mortgage term comes to an end and you sign-on for a new term (or pay off your existing mortgage). When you sign for a new term you’re essentially signing a new mortgage for the remaining balance owed. For example, if you have $350,000 remaining on a mortgage that was originally $500,000, your new mortgage will be for $350,000.
How will I know when it’s time to renew my mortgage?
Most lenders are required to provide you with a renewal statement at least three weeks before the end of your term so when your mortgage term is nearing an end, keep an eye on your mailbox or your email inbox for the renewal statement.

Your renewal statement will include information about your mortgage that’s included in your normal statements, such as your current balance, payment amount, payment frequency, etc., as well as a renewal form that you can sign and send back.
Do I have to stick with my current mortgage holder?
No. When it’s time to renew your mortgage, you can go with any lender you choose. In fact, moving your mortgage to a different lender may better suit your needs. Your new lender will need to approve your application just in case the criteria they use for approval differs from your original lender.
Isn’t it easier to just auto-renew?
Yes, it may be easier to simply renew your existing mortgage. However, it may work against you. Ignoring your renewal and re-signing the initial agreement means you forfeit your chance to renegotiate the terms of your mortgage contract, including the length of your next term, your interest rate and even your lender. Being able to change your mortgage at set intervals means that you can also change your mortgage to better align with your needs and what’s happening in the housing market as a whole.
What’s the biggest disadvantage of an automatic renewal?
Most homeowners renew their mortgage with the same lender that holds their current mortgage. It doesn’t seem like a big deal; it’s much easier and more convenient to simply accept the terms, sign the paperwork, and send it back to your lender.

However, by not exploring other options, you could be leaving thousands of dollars on the table. This is your opportunity to explore other options and test the market to see if you can find a better rate and/or more flexible terms elsewhere. And, chances are you probably can. Even if you are happy with your current lender, a mortgage broker can at least check with your current lender to see if they will give you a better deal before taking your mortgage elsewhere.
Why should I work with a broker when it’s time to renew?
Mortgage brokers aren’t just helpful when you get your first mortgage. They’re also able to help you in the same way they did for your first (or second) mortgage: by shopping around for the best rates among multiple lenders who are doing the legwork for you.

Even if your mortgage isn’t up for renewal, don’t wait for your lender to notify you. Contact your broker up to a few months before the end of your term so they can get going on the process for you. A mortgage broker can be extremely helpful during the negotiation process and ensure you get the best terms and rates as possible.