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

How Rental Income Impacts Your Mortgage Approval (And Why Lender Choice Matters)

By Tim Lyon • January 20, 2026
If you are buying a home with a suite, keeping your current home as a rental, or already own a rental property, mortgage qualification can get confusing fast. The frustrating part is that you can do everything “right” and still get very different answers depending on which lender you talk to. Here’s a simple breakdown so you understand it and don’t miss out. What are Debt Service Ratios? In Canada, lenders qualify you using two main ratios: Gross Debt Service (GDS) This looks at housing costs only , typically: Mortgage payment Property taxes Heating 50% of strata fees (if applicable) GDS typically needs to be 39% or less of your gross income. Total Debt Service (TDS) This includes everything in GDS , plus other debts like: Car loans Credit cards Lines of credit Student loans TDS typically needs to be 44% or less of your gross income. These ratios are the foundation. If they do not work, the lender will not approve the mortgage, even with strong credit and a solid down payment. How Lenders Treat Rental Income Most people assume lenders look at rental properties based on simple cash flow (rent minus mortgage payment). In reality, most lenders use one of two methods: 1) Addback A percentage of the rental income is added to your gross income for qualification purposes. 2)Offset A percentage of the rental income is subtracted from the mortgage payment tied to the rental property. Different lenders use different percentages and different worksheets. That is why the same borrower can qualify with one lender and fail with another. Benefits of Understanding Lender Methods When you understand how rental income is calculated, you can: Avoid being under-qualified by a lender with conservative rules Get a more accurate picture of your real purchasing power Choose a lender that fits your situation (instead of forcing your situation to fit the lender) Important Considerations A few key points to keep in mind: Rental income is rarely counted at 100% , but some lenders are more generous than others. The method matters just as much as the percentage (addback vs offset). If you own multiple properties, lender worksheets can change the result dramatically. Your lender choice is a strategy decision , not just a rate decision. Real-World Example: Same Clients, Two Very Different Outcomes Here’s an example comparing lenders Scotiabank and Strive, using a fictitious couple: Scenario Household income: $160,000 Existing townhome: $800,000 value with a $525,000 mortgage ( $2,500/month payment) Market rent for the townhome: $3,400/month New purchase: property with a rental suite generating $1,800/month Down payment: 10% Other debts: student loan $165/month , car loan $500/month How Scotiabank viewed it For the townhome rental, they counted half the rent and subtracted the mortgage payment, leaving an $800/month shortfall that gets added into the debt ratios. For the new purchase, 50% of the suite income gets added to income. Max mortgage : $650,700 Max purchase price : $723,000 How Strive viewed it For the townhome rental, Strive used a rental worksheet and calculated $5.20/month of income that can be added to the application. For the new purchase, 100% of the suite income gets added to income, and they did not need to include taxes or heat. Max mortgage : $878,400 Max purchase price : $976,000 The result That’s a $253,000 difference in purchasing power , with the same clients, same income, same debts, and same properties. The difference was lender policy. Quick Summary GDS and TDS ratios are the backbone of mortgage qualification. Rental income is usually counted using Addback or Offset , and each lender handles this differently. Two lenders can produce wildly different results, even with the exact same file. In the example above, lender choice created a $253,000 swing in purchasing power. Next Steps If you are planning to: Buy a home with a suite Keep your current home and convert it to a rental Use rental income to qualify Reach out and I will run the numbers across multiple lenders so you see what you actually qualify for, not just what one lender will allow. Need help with your mortgage? Book a consultation or call 778-988-8409 . Glossary Addback : A method where a lender adds a percentage of rental income to your gross income for qualification. Gross Debt Service (GDS) : The ratio that measures housing costs as a percentage of gross income. Offset : A method where a lender subtracts a percentage of rental income from the rental property’s mortgage payment for qualification. Total Debt Service (TDS) : The ratio that measures housing costs plus other debts as a percentage of gross income.

Mortgage Renewal vs. Refinance: Understanding the Key Differences

By Tim Lyon • November 25, 2025
If you own a property with a mortgage, you've probably heard the terms "renewal" and "refinance" thrown around. While both involve obtaining a new term for your mortgage, there are some important differences to understand. Let's break down what each one means and when you might use them. Understanding Mortgage Basics In Canada, when you take out a mortgage, the payments are typically spread over 25 to 30 years. This period is known as the amortization. However, unlike in the U.S., Canadians do not keep the same interest rate and payment terms for the entire amortization period. Instead, you have an initial term, usually 3 to 5 years, after which you need to renew into a new term. For example, if you have a 25-year mortgage with 5-year terms, you will need to renew your mortgage four times throughout its lifespan. It's also common to have a mix of different term lengths over the course of your mortgage. What is a Mortgage Renewal? A mortgage renewal occurs at the end of your mortgage term. When you renew, you start a new term with a new interest rate while keeping the remaining details of your mortgage the same. The key element here is that the mortgage charge registered on your property's title remains unchanged. A renewal is straightforward and typically does not involve any significant changes to your mortgage agreement other than a new interest rate. Think of it as hitting the "continue" button on your mortgage, but at new rates. What is a Mortgage Refinance? A mortgage refinance is different. When you refinance, you are making changes to your original mortgage agreement. This means paying off your existing mortgage and registering a new one on your property's title. Essentially, you are taking out a completely new mortgage for the same property. People commonly refinance to: Access the equity in their home for investments or major purchases Consolidate high-interest debt into their lower-rate mortgage Extend the amortization period to reduce monthly payments and improve cash flow Make significant changes to their mortgage structure It's important to note that refinancing is not allowed for insured properties (those with less than a 20% down payment at purchase). This means the maximum loan amount in a refinance is 80% of your property value. What About Switching Lenders? If you want to keep everything the same but switch lenders for a better rate, this is known as a transfer. A transfer is a type of renewal where the original mortgage charge is transferred from one lender to another. Depending on the lenders involved, you might be able to make minor changes (like extending the amortization or changing borrowers) without needing a full refinance. Why Timing Matters Your mortgage maturity date is when your current term ends. This is the ideal time to either renew or refinance. If you refinance or switch lenders before the maturity date, you will face a prepayment penalty. If you refinance, renew or transfer at maturity, there is no penalty. Real-World Example A homeowner with a $450,000 mortgage is reaching the end of their 5-year term. Their lender offers a renewal rate, but they also have $40,000 in high-interest credit card debt. Option 1: Renewal They accept the new term. Their mortgage stays the same. Their debt remains separate at high interest rates. Option 2: Refinance at Maturity They consolidate the credit card debt into the new mortgage. Their total monthly payments drop significantly, even after accounting for the new mortgage balance. In this situation, refinancing provides better cash flow and a simpler payment structure. Quick Summary Mortgage Renewal: Starts a new term for your existing mortgage Mortgage charge on your title stays the same Keeps all other terms the same aside from interest rate Can switch lenders at renewal through a transfer No penalty when done at maturity Mortgage Refinance: Pays off current mortgage and creates a new one New mortgage charge registered on your title Often resets the amortization period Can access equity or make structural changes Maximum 80% of property value for uninsured mortgages Incurs penalty if done before maturity Next Steps Understanding the difference between renewal and refinance helps you make informed decisions about managing your mortgage. If you have a renewal coming up or are considering accessing your home equity, now is a good time to explore your options. Whether you're looking to renew, refinance, or switch lenders, I'm here to help you navigate the process and find the best solution for your situation. Need help with your mortgage? Book a consultation or call 778-988-8409 . Glossary Amortization: The total time period over which you'll pay off your mortgage, typically 25-30 years in Canada. Insured Mortgage: A mortgage where the down payment was less than 20%, requiring mortgage default insurance to be added. Maturity Date: The end date of your current mortgage term, when you need to renew or refinance. Mortgage Charge: The legal registration of your mortgage on your property's title. Pre-payment Penalty: A fee charged by your lender if you pay off your mortgage before the end of your term. Refinance: Replacing your existing mortgage with a new mortgage, often with different terms or to access equity. Renewal: Starting a new term for your existing mortgage, typically just updating the interest rate. Term: The length of time your current mortgage contract is in effect, typically 3-5 years in Canada. Transfer: Moving your mortgage from one lender to another at renewal without changing other terms.