My Process for Mortgage Renewals and Refinances

Tim Lyon • August 29, 2024

Whether your mortgage is coming up for renewal or you're considering a refinance, you deserve to know all your options.

Most people simply accept their existing lender's renewal offer without shopping around, often leaving thousands of dollars on the table.


I've designed a straightforward process to analyze your options across 50+ lenders and present clear recommendations so you can make an informed decision.


Here's how it works.


Step 1: The Discovery Call

We start with a conversation where I learn about your current situation and goals.


For Renewals, I'll ask about:
  • When is your renewal date?
  • What rate are you currently paying?
  • What has your existing lender offered your for your renewal options?
  • Have there been changes in your financial situation?
  • Do you want to adjust your payment or amortization?
  • Are you planning to stay in this property long-term?


For Refinances, I'll ask about:
  • What are you looking to accomplish? (Access equity, consolidate debt, renovations, etc.)
  • How much equity do you have?
  • What's your current mortgage balance and rate?
  • What's your timeline?


In both cases, we'll discuss:
  • Your financial goals for the next 3-5 years
  • Your comfort level with different payment amounts
  • Whether you want fixed or variable rate options


What to expect: 30 to 45 minutes. Bring details on income, debts, current mortgage, and goals.


Step 2: Application and Documentation

After our call, I'll send you a secure link to complete your application, along with a tailored document request list.


The Application

Many questions will seem familiar from our call. This redundancy is intentional and helps me catch any discrepancies.


The Documents

Typical items for renewals and refinances:

  • Government ID
  • Income verification
  • Recent mortgage statement and current property tax bill
  • Home insurance details
  • Void cheque or PAD form

·      If refinancing: Details on any debts you're consolidating


You can review my general document checklists below:


Critical rule: Do not edit, adjust, or redact any documents. Lenders need to see everything in its original form.


Step 3: Analysis and Options Review

Once I have your application and documents, I'll analyze your situation in detail.

After my analysis, I'll send you a personalized video walkthrough that outlines:

  • All your options clearly explained
  • Pros and cons of each option
  • My recommendations
  • Next steps if you want to proceed

I typically present 3-5 options to keep it clear and digestible.

After you review the video and initial options we can schedule another call to go through any questions you might have or I can evaluate any other options you would like to consider.


Step 4: You Decide and We Move Forward

After reviewing your options, you decide how to proceed.


You might choose to:

  • Accept your current lender's renewal offer
  • Switch to a new lender for better rates or terms
  • Proceed with a refinance
  • Wait and revisit closer to your renewal date


There's no pressure. My job is to provide complete information so you can make the best decision.


Once you decide, I handle everything: negotiating with lenders, managing paperwork, coordinating with your lawyer/notary, and ensuring everything closes smoothly.


What Makes My Approach Different

  • Full underwriting up front: fewer surprises, faster approvals.
  • 50+ lenders: competitive pricing and better fit on policy and features.
  • Numbers you can trust: complete cost and savings analysis, not just the rate.
  • Clear recommendation: I explain trade-offs so you can choose with confidence.


Timeline Expectations

For Renewals:
  • Start 4-6 months before your renewal date
  • Switching lenders takes 4-6 weeks
  • Staying with your current lender can be done in days


For Refinances:
  • Typically 4-6 weeks from start to finish


Common Questions

When should I start the renewal process?

Start 4-6 months before your maturity date. This gives time to compare options and ensure a smooth transition.


What if I want to stay with my current lender?

That's fine! At least you'll know their offer is competitive.


How much does refinancing cost?

Typical costs include legal fees ($1,200-$1,800), appraisal if required ($300-$500), and potentially a discharge fee ($300-$400). Many costs can be rolled into the new mortgage.


Can I refinance if I'm self-employed?

Yes, though documentation requirements may be more extensive. I work with many self-employed clients and understand how to present income effectively.


Quick Summary

My process for renewals and refinances:

  1. Discovery Call: Discuss your current mortgage, goals, and financial situation
  2. Application & Documents: Complete application and provide supporting documents
  3. Analysis & Options Review: Receive clear video breakdown with recommendations
  4. You Decide: Choose how to proceed; I handle all the details


Result: A clean, numbers-driven decision that improves your mortgage, your cash flow, or both.


Next Steps

Ready to review your renewal or explore a refinance? Let’s talk.

Book a consultation or call  778-988-8409.


Glossary

Equity: The difference between your home's current value and what you owe on your mortgage.


Lender: A financial institution that provides mortgage financing. This can be a bank, credit union, monoline lender, or other regulated lending institution.



Mortgage Renewal: Setting up a new term when your current term expires. Your balance continues, but you negotiate a new rate and term.


Mortgage Refinance: Replacing your existing mortgage with a new one, often to access equity or consolidate debt.


Maturity Date: The date your current mortgage term ends and renewal is required.


Penalty: A fee charged if you pay off your mortgage before the term ends.

Tim Lyon

Mortgage Consultant

Credit and Mortgage Financing

By Tim Lyon • October 9, 2025
Credit. The ability of a customer to obtain goods or services before payment, based on the trust that you will make payments in the future. When you borrow money to buy a property, you’ll be required to prove that you have a good history of managing your credit. That is, making good on all your payments. But what exactly is a “good history of managing credit”? What are lenders looking at when they assess your credit report? If you’re new to managing your credit, an easy way to remember the minimum credit requirements for mortgage financing is the 2/2/2 rule. Two active trade lines established over a minimum period of two years, with a minimum limit of two thousand dollars, is what lenders are looking for. A trade line could be a credit card, an instalment loan, a car loan, or a line of credit; basically, anytime a lender extends credit to you. Your repayment history is kept on your credit report and generates a credit score. For a tradeline to be considered active, you must have used it for at least one month and then once every three months. To build a good credit history, both of your tradelines need to be used for at least two years. This history gives the lender confidence that you’ve established good credit habits over a decent length of time. Two thousand dollars is the bare minimum limit required on your trade lines. So if you have a credit card with a $1000 limit and a line of credit with a $2500 limit, you would be okay as your limit would be $3500. If you’re managing your credit well, chances are you will be offered a limit increase. It’s a good idea to take it. Mortgage Lenders want to know that you can handle borrowing money. Now, don’t confuse the limit with the balance. You don’t have to carry a balance on your trade lines for them to be considered active. To build credit, it’s best to use your tradelines but pay them off in full every month in the case of credit cards and make all your loan payments on time. A great way to use your credit is to pay your bills via direct withdrawal from your credit card, then set up a regular transfer from your bank account to pay off the credit card in full every month. Automation becomes your best friend. Just make sure you keep on top of your banking to ensure everything works as it should. Now, you might be thinking, what about my credit score, isn’t that important when talking about building a credit profile to secure a mortgage? Well, your credit score is important, but if you have two tradelines, reporting for two years, with a minimum limit of two thousand dollars, without missing any payments, your credit score will take care of itself, and you should have no worries. With that said, it never hurts to take a look at your credit every once and a while to ensure no errors are reported on your credit bureau. So, if you’re thinking about buying a property in the next couple of years and want to make sure that you have good enough credit to qualify, let’s talk. Connect anytime; it would be a pleasure to work with you and help you to understand better how your credit impacts mortgage qualification.

How Mortgage Rates Work: Fixed vs. Variable

By Tim Lyon • September 26, 2025
What affects mortgage rates? Does the Bank of Canada rate affect fixed-rate mortgages? These are questions that come up all the time, so in this this post, I’ll explain how fixed and variable rates are determined, why they don’t always move together, and what that means for you as a borrower. But to start with the short answer: While Bank of Canada announcements immediately impact variable rates, fixed rates usually have those expectations already baked in long before the announcement. That’s because fixed rates are forward-looking — they reflect where markets think rates are headed, not just where they are today. What Are Fixed and Variable Rates? Fixed Rate The interest rate stays the same for the entire mortgage term. Payments remain consistent, no matter what happens in the market. Variable Rate The interest rate changes during the mortgage term, moving up or down depending on the lender’s prime rate. Payments may stay the same (VRM) or change (ARM). How Do Fixed Rates Work? When you choose a fixed rate, the lender is guaranteeing your rate for the length of your term . To do this, they need to estimate what a fair rate will be over that time. This makes fixed rates more forward-looking — they often reflect not just today’s conditions, but also what the market expects to happen in the future. Key Points About Fixed Rates Strongly influenced by the Canadian bond market (especially the 5-year government bond yield). Lenders adjust their fixed rates based on investor expectations for inflation and future interest rates. Often, Bank of Canada moves are already baked into fixed rates before they happen. Example If bond yields suggest that rates will rise in the next year, lenders may increase fixed rates now, even if the Bank of Canada hasn’t made a move yet. How Do Variable Rates Work? Variable rates move directly with the Bank of Canada’s overnight rate. When the Bank of Canada raises or lowers its rate, lenders adjust their prime rate accordingly, and variable mortgages follow. For borrowers, the most important detail is the discount from prime , because that sets the actual rate you pay. For example, if prime is 4.95% and your mortgage is Prime – 0.5%, your rate is 4.45%. The discounts lenders offer change over time. In periods of economic uncertainty, lenders usually shrink the discount they offer, which can make new variable mortgages less attractive even if prime is coming down. Key Points About Variable Rates Directly tied to the Bank of Canada’s overnight rate, which is reviewed eight times a year. Banks adjust their prime rate in response to these moves. Your actual rate = Prime – discount (e.g., Prime – 0.5%). Example If prime is 4.95% and your mortgage is Prime – 0.5%, your rate is 4.45%. If the Bank of Canada cuts rates by 0.25%, prime drops to 4.70%, and your rate automatically drops to 4.20%. Why Don’t Fixed and Variable Always Move Together? Fixed rates reflect the bond market, which looks ahead at where rates and inflation may go. Variable rates respond directly to Bank of Canada decisions, reflecting current conditions. This is why fixed rates can fall while variable rates stay flat, or vice versa. Next Steps If you’re deciding between fixed and variable, understanding how each is set is the first step. The next is to match the right mortgage type to your budget and comfort with risk. If you’d like to review which option works best for you, I’d be happy to help. Need help with your mortgage? Book a consultation or call 778-988-8409 . Mortgage Term Glossary Amortization: The total length of time it will take to pay off your mortgage completely (typically 25–30 years in Canada). Bond Yield: The return investors get from government bonds. Used as a benchmark for fixed mortgage rates. Discount (Variable Rate): The amount subtracted from prime to determine your actual mortgage rate. Fixed Rate: An interest rate that stays the same for the entire mortgage term. Mortgage Term: The length of your mortgage contract with your lender (typically 1–5 years), after which you need to renew. Overnight Rate: The interest rate at which major banks borrow and lend money to each other, set by the Bank of Canada. Prime Rate: The interest rate banks use as a baseline for loans, influenced by the Bank of Canada’s overnight rate. Variable Rate: An interest rate that changes during your mortgage term based on lender prime rates.