Page 8 - THE KINGSWAY Lifestyle Magazine Winter 2025

As days pass, it is becoming evident that interest rates are gradually easing for variable-rate and fixed-rate mortgage products - much welcomed by those with existing mortgages, those approaching renewal and those looking to enter the market. e question remains: when will the segment of homeowners who entered the market at substantially lower interest rates, who
have already made lifestyle and spending habit adjustments while enduring the overall cost of living, discover relief?
The Mortgage Corner
Daniel Vyner is principal broker at DV Capital, a mortgage brokerage based in Toronto.
DV Capital
FSRA Lic. 13186
Local: 416-839-5874
Toll Free: 1-866-839-5874
Email: info@dvcapitalcorp.com
Twitter: @DanielVyner dvcapitalcorp.com
A significant change to the mortgage renewal landscape is in the pipeline. Homeowners with uninsured mortgages, mortgages that are default-insured, for example, homebuyers who purchased their homes with a down payment of 20% or more, will no longer need to undergo mortgage stress-testing while switching mortgage lenders at renewal.
This has been a concern for many homeowners who have expressed they’ve been at the mercy of the renewal offer provided to them by their existing lender, specifically those unable to qualify to switch lenders at renewal due to the inability to pass the mortgage stress test. Although the mortgage amount and amortization must remain intact, this policy will support homeowners explore additional mortgage renewal options and increase competitiveness in the mortgage market. Remember that most lenders currently offer renewals to their homeowner borrowers with little to no scrutiny, much less subjecting them to the mortgage stress test at maturity.
For those looking to enter the market, a mortgage professional can assist you in understanding mortgage qualifying power, affordability and product options. Knowing mortgage qualifying ability, ideally in the form of a pre-approval, will help you efficiently focus on and search for viable properties.
For existing homeowners with mortgages approaching maturity, be proactive; contact your mortgage lender to understand your renewal options (i.e. interest rate, term length). Use this information as ammunition with your licensed mortgage professional to help you explore alternative mortgage options. If your mortgage is not yet maturing and you are considering accessing your home equity to consolidate debt, file income taxes, pay an outstanding balance to the CRA, complete home improvements, or inject money into your business (self- employed), there are potential options that will allow you to keep an existing mortgage in priority, or, depending on cost and practicality, re-write and increase an existing mortgage.
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