How to Prepare For Your Next Mortgage Renewal

General Trish Pigott 14 Apr

If your Mortgage is up for renewal in the next few years, it’s never too early to prepare so that you are sure to get the lowest rate in the market at that time.  Your mortgage rate can be held for up to 120 days prior to the actual maturity date. 

Lenders will not usually waive penalties for early renewal and don’t be fooled if they do.  Chances are that you’re not getting the most competitive rate.  Some lenders also are known to offer clients “posted” rates versus the fully discounted rates that new clients may be getting.  So don’t be fooled and sign on the dotted line without  a second opinion. 

Alot of people will also ask if they can add extra money to their mortgage at renewal time and that usually depends solely on how much equity is in your home.  If you have more than 20% equity in your property then chances are you can.  If you don’t then you will be renewing for the exact mortgage balance you owe at time of renewal. 

Two Key Items to Look at when preparing for Renewal:

1.  Ensure your credit score is strong at renewal time.  Avoid any missed or late payments and do your best to keep your balances less than 75% of the limit amount. 

2.  Ensure your income is in line with what it needs to be to qualify.  If you are newly self employed, this could impact whether you will qualify or not and may be stuck with the same lender at a higher rate if you don’t. 

The best thing to do overall is to call me, I can tell you very quickly what needs to be done, what’s available and the best way to proceed.  And if staying with your existing lender is the best choice….then I will advise you to do that too.  Call me at 604-729-7940 if you need help. 

5 Easy and Effective Ways to Increase Your Credit Score

General Trish Pigott 7 Apr

Most Canadians do not fully understand how credit scores are generated yet they are the most important determining factor when being approved for a mortgage.  If you need to improve your credit score and make a quick impact, here are 5 ways to do it quickly and effectively. 

~Pay All Bills on Time – Late payments are a score killer.

~Keep balances less than 75% of the limit amount (Example; Limit is $1000, keep balance less than $750)

~Do not allow any account to go over limit.  This is a major score killer.

~Limit your enquiries to 5 per year.  Do not let anyone check your credit unless you are certain you need them to or will be buying from them.  

~Do not allow any bills to go to collections.  These kill your score.  And if you have some, pay them off or settle them so it’s noted on your credit report.

I have developed a credit repair program over the years for clients that has proven results.  If you would like more information, contact me directly. 


I’m Back From Vacation, here’s some detail on the ultra low rates that dropped while I was gone…

General Trish Pigott 2 Apr

The first is that the 2.99% BMO five-year mortgage isn’t quite as good as it sounds.  The media blasted the low rate and it triggered home owners and buyers to jump at it.


BMO’s recent move to bring its rate below the psychologically significant 3% mark for fixed-rate five-year mortgages is being treated as a big deal because a similar move a year ago provoked then Finance Minister Jim Flaherty to admonish the bank. Joe Oliver, Flaherty’s successor, is taking a more laissez-faire attitude.


What BMO is offering until April 17th is a competitive rate in a mortgage with uncompetitive terms. Most important, you can’t break this mortgage before it comes up for renewal in five years unless you sell the property, refinance with BMO or do an early renewal into another BMO product. All the usual prepayment penalties would apply in these situations. 







Alot of other questions are coming in regarding the other low rates that have popped up on the rate sites all over the internet. 


Like any other bargain basement product, be aware that these products all come with limitations.  Some of them suit some home owners and some don’t.  The important thing to know is what to ask, as it’s not all about rate.  Contact me directly if you want the nitty gritty on these products.