Renewing Your Mortgage in 2023

3 minute read

If your mortgage is coming up for renewal this year, it’s likely that you will be facing a rate increase. Interest rates have gone up steadily, and dramatically in the past year, and are predicted to stay high throughout 2023. Coupled with high inflation, this has a lot of homeowners worried. According to FP Canada’s 2022 Financial Stress Index, 19% of Canadians are concerned about rising mortgage rates. If your mortgage is up for renewal in the near future, what should you consider when renewing, so that you can make peace with your mortgage?

Start thinking about your renewal early. You’ll need time to explore your options and consider what has changed since your last mortgage agreement.

What is your priority with your mortgage? Is it to pay down the balance as quickly as possible? Or is to keep your mortgage payment at an amount that works with your monthly budget? With the increase in interest rates throughout 2022, the priority for many folks is to keep their mortgage payment as low as possible.

Think about what you want from your mortgage provider. Sure, you want the lowest mortgage rate possible. But you might want more from your mortgage provider. Perhaps building a personal relationship with them is important to you. Maybe you want to be able to do everything online. On the other hand, maybe you want to be able to visit a branch and speak to someone in person. When you bank with a credit union, you are also an owner. As an owner, the more business you do with the credit union – deposits or loans – the more Profit Shares you receive. Many Kindred members like having their mortgage with a credit union that aligns with their values. Put some thought into whether there are other things to consider when renewing.

Take advantage of helpful tools. Online mortgage calculators can be very handy. You can consider different payment frequency options or amortization periods. Mortgage calculators will never replace personalized borrowing advice, but they can help you play with the numbers to gain some clarity on your mortgage options.

Consider your whole financial picture. Mortgages are a big piece of your financial puzzle, but they aren’t the only piece. They should fit your lifestyle and goals. Are you on track with your retirement savings? Have your income or expenses changed? Do you have a large expense on the horizon such as tuition for a child, a wedding, or a home renovation?

Get professional mortgage advice. Meet with a Kindred Mortgage Expert to see how we can help you find the mortgage solution to best meet your needs. Our Mortgage Experts will outline all your options and give you the tools you need to make the smartest financial decisions. Because there is no better way to make peace with your mortgage.

Paul Arsenault

Paul Aresenault, CFP®, PFP®, RIS, CKA® is Director, Wealth and Investments
Branch Compliance Manager, Qtrade Asset Management Inc.

Paul has a wealth of experience helping members achieve their goals as a CERTIFIED FINANCIAL PLANNER® professional. He coaches Kindred’s Financial Planning Team and acts as our compliance manager for Qtrade Asset Management Inc. In addition, Paul is passionate about sharing his knowledge around RDSPs with members and organizations.

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