Most people treat a mortgage renewal and buying their next home as two separate events. For one Ottawa couple, they were only a few months apart, and telling us about the second one at the start of the first made both go more smoothly.
CLIENT STORY AT A GLANCE
| Client | Ottawa couple, existing homeowners |
| Situation | Mortgage renewal coming up, with plans to sell and buy again within about six months |
| What we did | Handled the renewal, then arranged the financing for the next purchase |
| In their words | “made it look and feel easy and smooth” |
The situation
The couple contacted us because their mortgage was coming up for renewal. During that conversation, they mentioned they were planning to sell in the next six months. That detail matters, because the right renewal depends on what you plan to do next.
What we did
We handled the renewal first, keeping their upcoming move in mind. When they were ready to buy, we arranged the financing for the next home. The second transaction turned out to be more involved, because of a tax rebate whose rules were new and not clear at the time.
“it was a lot more complicated due to a hst rebate not being clear since it was new. But they handle it very well and made it look and feel easy and smooth.”
— Ottawa homeowner, 5-star Google review
“They really do the hard work for you and get you the best deal you can find.”
— Ottawa homeowner, 5-star Google review
What to tell your mortgage agent before you renew
- Say it if you might move. If a sale is possible within the next year or so, that changes which term and product make sense. A break penalty is the risk of picking the wrong one. See how mortgage penalties work.
- Ask about porting. Some mortgages can move with you to the next home. Mortgage porting is worth understanding before you sign a renewal.
- Start early. You can shop a renewal well before the date. Our renewal timeline shows when.
- Confirm rebates with your lawyer. Purchases of new homes can involve GST/HST rebates, and how they are credited changes the numbers at closing. Ask your real estate lawyer early.
Selling and buying at the same time has its own moving parts. See selling your house with a mortgage and why you do not always have to sell first to move up.
Common Questions
Can I renew my mortgage if I plan to sell soon?
Yes. Tell your agent about the plan so the renewal term and product are chosen with a sale in mind. The goal is to avoid a large prepayment penalty if you sell before the term ends.
What happens to my mortgage when I sell?
You can pay it out, which may trigger a penalty depending on your rate type and lender, or in some cases port it to your next home. The right move depends on your mortgage and timing.
Should I choose a shorter term if I might move?
It can reduce the penalty risk, but shorter terms and flexible products can come with different rates. It is worth comparing the actual numbers before you decide.
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About this story: This story is based on a verified 5-star Google review from a TopRankin client. Names and identifying details are left out to protect client privacy. Every mortgage is different, so your rate, approval and timeline will depend on your own file.