Mastering Your Mortgage Renewal: Key Strategies for Success

Josh Perez • September 7, 2023

Are you approaching the critical juncture of mortgage renewal? It's a significant financial milestone that demands careful planning and consideration. In this blog post, we'll share essential insights to help you navigate the process and secure the best possible terms for your mortgage.

Don't screw up your mortgage renewal. Here's what you need to know: 'We need more lead time to structure your whole financial picture, so we can avoid payment shock.

So What Can You Do?


Plan Ahead for a Smooth Transition

The first rule of thumb for a successful mortgage renewal is to plan well in advance. Typically, starting the process five to six months before your current mortgage term expires puts you in a strong position to secure favorable rates. However, in today's evolving market, where people are transitioning from interest rates of two and a half to three and a half percent into the high-fives, sixes, and even the 7% range, more lead time is crucial.

Why the extended lead time? To ensure we can structure your entire financial portfolio effectively, minimizing the risk of payment shock. So, start early, assess your financial goals, and align them with your mortgage renewal strategy.


Beware of Lender Bait

When your mortgage renewal date approaches, your existing lender may reach out with a seemingly enticing offer for a longer-term rate. While this might appear attractive at first glance, it's crucial to exercise caution. Accepting this option may lock you into higher rates for an extended period without exploring what else is available in the market.

Consider alternative strategies like a two-step approach with a shorter-term mortgage. This approach could potentially save you more money over the long term. Don't rush into decisions based on a single offer; explore your options and weigh them against your financial goals.


Prepare Your Income Documents

In today's volatile rate environment, securing and holding rate options is vital. To achieve this, you must be prepared to provide your income documents promptly. Mortgage professionals can only secure rates for you once they have your application and updated financial documents in hand.

Gather the necessary paperwork well in advance of your mortgage renewal date. This proactive approach will ensure that you have the flexibility to lock in favorable rates when market conditions are in your favor.


In conclusion, don't underestimate the importance of a well-executed mortgage renewal strategy. Start early, explore all your options, and gather your income documents to secure the best possible terms. By following these key strategies, you can master your mortgage renewal process and achieve financial peace of mind.

Remember, your mortgage renewal is not just a transaction; it's a valuable opportunity to enhance your financial well-being.


Need help with your renewal? Book a call with me today.

Josh Perez
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Bank of Canada Rate Announcement Jul 30th, 2025

By Josh Perez • July 30, 2025
Bank of Canada holds policy rate at 2¾%. FOR IMMEDIATE RELEASE Media Relations Ottawa, Ontario July 30, 2025 The Bank of Canada today maintained its target for the overnight rate at 2.75%, with the Bank Rate at 3% and the deposit rate at 2.70%. While some elements of US trade policy have started to become more concrete in recent weeks, trade negotiations are fluid, threats of new sectoral tariffs continue, and US trade actions remain unpredictable. Against this backdrop, the July Monetary Policy Report (MPR) does not present conventional base case projections for GDP growth and inflation in Canada and globally. Instead, it presents a current tariff scenario based on tariffs in place or agreed as of July 27, and two alternative scenarios—one with an escalation and another with a de-escalation of tariffs. While US tariffs have created volatility in global trade, the global economy has been reasonably resilient. In the United States, the pace of growth moderated in the first half of 2025, but the labour market has remained solid. US CPI inflation ticked up in June with some evidence that tariffs are starting to be passed on to consumer prices. The euro area economy grew modestly in the first half of the year. In China, the decline in exports to the United States has been largely offset by an increase in exports to the rest of the world. Global oil prices are close to their levels in April despite some volatility. Global equity markets have risen, and corporate credit spreads have narrowed. Longer-term government bond yields have moved up. Canada’s exchange rate has appreciated against a broadly weaker US dollar. The current tariff scenario has global growth slowing modestly to around 2½% by the end of 2025 before returning to around 3% over 2026 and 2027. In Canada, US tariffs are disrupting trade but overall, the economy is showing some resilience so far. After robust growth in the first quarter of 2025 due to a pull-forward in exports to get ahead of tariffs, GDP likely declined by about 1.5% in the second quarter. This contraction is mostly due to a sharp reversal in exports following the pull-forward, as well as lower US demand for Canadian goods due to tariffs. Growth in business and household spending is being restrained by uncertainty. Labour market conditions have weakened in sectors affected by trade, but employment has held up in other parts of the economy. The unemployment rate has moved up gradually since the beginning of the year to 6.9% in June and wage growth has continued to ease. A number of economic indicators suggest excess supply in the economy has increased since January. In the current tariff scenario, after contracting in the second quarter, GDP growth picks up to about 1% in the second half of this year as exports stabilize and household spending increases gradually. In this scenario, economic slack persists in 2026 and diminishes as growth picks up to close to 2% in 2027. In the de-escalation scenario, economic growth rebounds faster, while in the escalation scenario, the economy contracts through the rest of this year. CPI inflation was 1.9% in June, up slightly from the previous month. Excluding taxes, inflation rose to 2.5% in June, up from around 2% in the second half of last year. This largely reflects an increase in non-energy goods prices. High shelter price inflation remains the main contributor to overall inflation, but it continues to ease. Based on a range of indicators, underlying inflation is assessed to be around 2½%. In the current tariff scenario, total inflation stays close to 2% over the scenario horizon as the upward and downward pressures on inflation roughly offset. There are risks around this inflation scenario. As the alternative scenarios illustrate, lower tariffs would reduce the direct upward pressure on inflation and higher tariffs would increase it. In addition, many businesses are reporting costs related to sourcing new suppliers and developing new markets. These costs could add upward pressure to consumer prices. With still high uncertainty, the Canadian economy showing some resilience, and ongoing pressures on underlying inflation, Governing Council decided to hold the policy interest rate unchanged. We will continue to assess the timing and strength of both the downward pressures on inflation from a weaker economy and the upward pressures on inflation from higher costs related to tariffs and the reconfiguration of trade. If a weakening economy puts further downward pressure on inflation and the upward price pressures from the trade disruptions are contained, there may be a need for a reduction in the policy interest rate. Governing Council is proceeding carefully, with particular attention to the risks and uncertainties facing the Canadian economy. These include: the extent to which higher US tariffs reduce demand for Canadian exports; how much this spills over into business investment, employment and household spending; how much and how quickly cost increases from tariffs and trade disruptions are passed on to consumer prices; and how inflation expectations evolve. We are focused on ensuring that Canadians continue to have confidence in price stability through this period of global upheaval. We will support economic growth while ensuring inflation remains well controlled. Information note The next scheduled date for announcing the overnight rate target is September 17, 2025. Read the July 30th., 2025 Monetary Report

Exploring Opportunities in Bungalow Conversions Amid Rising Interest Rates

By Josh Perez • July 28, 2025
As interest rates continue to rise, the real estate market is seeing some major shifts. While the rapid growth of property values we saw in 2020 and early 2021 may feel like a distant memory, there are still opportunities for savvy investors to make profitable moves. One strategy I’ve been closely examining involves bungalow conversions, a trend that thrived when interest rates were at historical lows but is still relevant in today’s market with the right approach. The Bungalow Conversion Trend Back in the peak of the market—when interest rates were at rock-bottom levels—investors were purchasing bungalows in the $500,000 to $700,000 range, adding significant renovation costs (sometimes $100,000, $150,000, or even $200,000), and converting them into multi-unit properties. These properties would often see their value skyrocket, with two units bringing in over $1 million on the market. This surge was fueled by the low interest rates, often between 1.5% and 2.5%, which made it easier for investors to carry larger mortgages. With rental income supporting mortgages of $800,000, investors could break even or even cash flow a bit, making the bungalow conversion strategy an attractive option. The Shift: Rising Interest Rates Fast forward to today, and interest rates have climbed significantly, ranging between 5% and 6%. This change in the lending landscape has made it harder for many investors to cash flow properties in the same way they did a few years ago. With higher mortgage payments, properties that once offered positive cash flow are now operating at a loss. But there’s still a way to make this strategy work—by adding more rental income streams. The key is increasing the number of units within the property. Running the Numbers: Maximizing Rental Income Let's break down how adding a third rental unit to a property can still make bungalow conversions profitable in today’s market. Main Floor Unit (3-bedroom) : If this unit rents for around $2,300 per month, that’s a solid start. Basement Unit : Depending on the property and its location, basements can typically rent for $1,600 to $2,000 per month. Let’s take an average of $1,800 for this example. Detached Garage Unit : A separate garage can be converted into a rentable unit, bringing in an additional $1,700 to $1,800 per month. By adding a third unit, the total monthly rental income could reach up to $6,000, or more. This significantly changes the cash flow dynamic. For a property with a mortgage of $800,000 to $900,000 at today’s rates, the added rental income can offset the higher mortgage payments, allowing the property to cash flow positively rather than negatively. The Bottom Line While the rising interest rates have made it more challenging to generate positive cash flow from traditional rental properties, the bungalow conversion strategy remains a powerful tool for investors. By converting a single-family home into a multi-unit property—whether by utilizing basements or adding a detached garage unit—you can create multiple streams of rental income that make the property viable, even in today’s higher-rate environment. In summary, the strategy is still worth exploring. With the right renovations and rental income projections, you can still cash flow and potentially see a great return on investment in today’s market. The key is running the numbers, understanding your rental potential, and adapting to the changing landscape of real estate financing.