What Is a Mortgage Renewal?

A mortgage renewal is the simple option. Your current term is ending, and you pick a new one. You keep the same mortgage balance — you’re not borrowing more.

You typically renew when:

• You don’t need extra money right now
• You’re okay with your current mortgage amount
• You just want a good rate and to keep things easy
• You’re at the end of your term so there’s no penalty

With a renewal, you can often switch lenders at no penalty if you do it at the end of the term — I can shop the rate for you at that point.

What Is a Mortgage Refinance?

A refinance is the bigger move. You’re not just picking a new rate — you’re changing the mortgage itself.

You refinance when you want to:

• Access equity (renos, investing, helping family)
• Consolidate higher-interest debt into your mortgage
• Lower or change your payment by extending amortization
• Switch lenders mid-term for better options

In BC, most homeowners can refinance up to 80% of their home’s current value.

See full refinance options »

Which One Should You Do?

Here’s the simple way to look at it:

• “I just want a good rate and to keep it simple.” → Renew
• “I need extra money.” → Refinance
• “I want to pay off debt and clean this up.” → Refinance (debt consolidation)
• “I want to buy another property.” → Refinance to invest

If you’re not sure, send me your renewal date and current balance — I’ll tell you if it’s worth doing more than a renewal.

Timing, Penalties, and Switching Lenders

If you refinance before your term is up, your current lender may charge a penalty. Sometimes it’s small, sometimes it’s not — it depends on the lender and the rate you chose.

What I do is:

• Get the actual payout/penalty from your lender
• Compare it to what you’d save or gain by refinancing
• Tell you how long it will take to break even
• If it’s not worth it, we renew now and plan your refi later

At renewal, it’s often the best time to switch lenders because there’s usually no penalty.

Related Refinance Options

Depending on your goals, we may use one of these strategies instead of a basic renewal:

• Refinance to invest in another property
• Refinance to consolidate debt and lower payments
• Full refinance overview

Want me to tell you which one is smarter?

Text me your current lender, mortgage balance, and renewal date — I’ll tell you straight whether you should just renew or if it’s worth doing a full refinance.