How many residential mortgages can I have?

The number of mortgages you can have is unlimited. Rather, people are constrained by their capacity to manage several mortgages or their financial status. First and second mortgages are two mortgages that are typically held concurrently on a same property.

What is a second mortgage Canada?

Second mortgage is a second loan or funding you take on your residential property. Interest rates on second mortgages are usually higher than first mortgages and you need to pay both your mortgages at the same time.

What is a conventional mortgage Canada?

A conventional mortgage in Canada is a loan where the down payment is at least 20% of the property's purchase price. This means that the loan amount is 80% or less of the property's value.

How long can you mortgage a home in Canada?

In Canada, you can mortgage a home for 25 years. If you are a first-time buyer or purchasing a new build you can mortgage it for 30 years. These rules took effect on December 15, 2024.

Can I buy a home with less than a 20% down payment?

The minimum amount you need for your down payment depends on the purchase price of the home. If your down payment is less than 20% of the price of your home, you'll typically need to buy mortgage loan insurance. If you're self-employed or have a poor credit history, your lender may require a larger down payment.

Should I choose a fixed rate or variable rate mortgage?

Interest rates either rise or fall. But a study suggests that homeowners with a variable mortgage fair better than a fixed rate one.

Why Mortgage Pre-Approvals Matter More Than Ever This Spring

05 May The Complete Guide to Mortgage Renewal in Abbotsford, Surrey & Nearby Areas

Posted at 14:53h in Mortgage Renewal by Satbir Bhullar

Mortgage renewals are an important financial decision, especially for homeowners in Abbotsford, Surrey, Langley, and surrounding BC communities who are facing higher rates than they originally signed up for. If your mortgage term is ending in 2025 or early 2026, you’re not alone — many Canadians are coming off low fixed rates from 2020–2021 and now entering a completely different lending environment.

Renewing your mortgage is not just a formality. It’s a chance to reassess your financial strategy, reduce your interest costs, and even renegotiate your mortgage terms. But it can also come with pitfalls — especially if you accept your lender’s first offer without shopping around.

In this complete guide, we’ll cover what mortgage renewal means, how it works in BC, and how homeowners can take control of the process to maximize savings and avoid common mistakes.

What Is a Mortgage Renewal?

A mortgage renewal occurs when your current mortgage term (typically 1 to 5 years) ends, but you still have a remaining balance to pay off. At this point, you need to either:

Renew your mortgage with your existing lender
Refinance or switch to a new lender offering better terms

Most Canadians choose 5-year terms, which means many homeowners with mortgages from 2020–2021 are coming up for renewal in 2025. And unlike the historically low rates of that period (some below 2%), today’s rates are between 4.5% and 5.25%, depending on your product type and lender.

For homeowners in Abbotsford and Surrey, where average home prices are still below Metro Vancouver but above national averages, even a 1% rate increase at renewal can translate into hundreds of dollars more per month.

When Should You Start Preparing for Your Mortgage Renewal?

Most lenders send you a renewal offer 30 days before your term expires, but that’s often too late to secure the best deal. Ideally, you should start planning 4 to 6 months in advance.

Many lenders and brokers allow you to:

Hold a rate for up to 120 or 180 days
Renew early without penalties
Explore refinancing or switching options in time

By starting early, you give yourself enough time to compare offers, run calculations, and avoid making a rushed decision. It’s especially important in areas like Clayburn Village (Abbotsford) or Fleetwood (Surrey) where home values can vary — affecting your loan-to-value ratio and renewal terms.

Common Mistake: Automatically Accepting Your Lender’s First Offer

Many homeowners simply sign their renewal letter and move on. But doing so can cost you thousands over the life of your mortgage.

Here’s why:

Lenders often offer posted rates or non-discounted rates in initial renewal notices
They count on your inertia and assume you won’t shop around
Without negotiation, you miss out on broker-only rates, cashback offers, or more flexible terms

This is where a mortgage advisor can step in — helping you negotiate, switch, or even blend and extend your mortgage, depending on your goals.

What to Evaluate Before Renewing

Before signing any renewal, assess your full financial situation:

Has Your Income or Debt Changed?

If your household income has increased or you’ve paid down debts, you may now qualify for a better product or shorter amortization, saving interest.

Do You Want to Change Your Term or Rate Type?

If you were previously on a variable rate, you might want to lock in a fixed rate for peace of mind — or vice versa. This is the ideal time to review your risk tolerance and goals.

Do You Have Equity You’d Like to Access?

Your renewal can be a chance to refinance — for home renovations, debt consolidation, or investing. Even with today’s rates, refinancing can make sense with proper planning.

Mortgage Renewal in the Fraser Valley: Local Context

In Abbotsford, Mission, and Langley, many homeowners are dealing with mortgages originally signed when 5-year fixed rates were below 2.5%. As these expire in 2025, many are facing renewal rates nearly double their current terms.

Meanwhile, home values have either stabilized or modestly increased, especially in family neighbourhoods near schools and commuter routes. This may offer homeowners strong equity positions, even if they’re now borrowing at a higher rate.

In Surrey’s Newton, South Cloverdale, or Panorama Ridge, higher household incomes may help offset rate increases — but only if a proactive renewal strategy is in place.

FAQs: Mortgage Renewal in BC – What Homeowners Need to Know

Q1. Can I negotiate my mortgage renewal?

Yes — and you absolutely should. Most lenders don’t offer their lowest rates upfront. By comparing options or working with a mortgage broker, you can negotiate better rates, terms, and even switch lenders without penalties if done properly.

Q2. Is it worth switching lenders at renewal?

Switching can be worthwhile if another lender offers a lower rate, better prepayment privileges, or terms better suited to your goals. Many lenders will cover some or all transfer fees to earn your business. A mortgage broker can help you evaluate the pros and cons.

Q3. Will I need to requalify when switching lenders?

Yes, unlike renewing with your existing lender, switching typically requires you to requalify under the current mortgage stress test. That’s why it’s best to assess your income, debt, and credit ahead of time — especially in tighter lending environments.

Q4. How do rising rates affect my renewal?

If your previous rate was between 1.5% and 2.5%, you may now face a renewal rate closer to 5%. That can mean significant increases in your monthly payments, particularly for high-ratio borrowers. Planning early allows you to manage the shock and consider options like extended amortization or blended rates.

Q5. Can I refinance instead of renewing?

Yes — and this is the ideal time to do so. You can refinance to:

Consolidate high-interest debt
Fund home improvements
Restructure your mortgage for better cash flow
Refinancing gives you more control but may involve new terms and fees, so it’s important to calculate the long-term benefit.

(Related post: Refinancing Your Mortgage: How to Do It)

Renewal Strategy: How to Maximize Your Outcome

Start Early — 120 Days Before Term Expiry: Most lenders let you renew 4–6 months early. This gives you time to explore offers, avoid stress, and lock in a rate before any potential increases.

Use a Broker to Access Multiple Options: A mortgage broker can compare rates from banks, credit unions, and monoline lenders — saving you time and potentially thousands in interest. They’ll also handle paperwork and guide you through qualification if you decide to switch or refinance.

Know Your Current Terms and Penalties: If you’re considering an early renewal, review your current mortgage terms carefully. Some fixed-rate mortgages include prepayment penalties that may not be worth incurring unless offset by significant rate savings or equity access.

Watch for Promotional Offers: Spring 2025 has already brought lender promotions, especially in Surrey, Abbotsford, and Langley, where competition for renewals is strong. Cashback, reduced fees, or flexible terms may be available if you shop around or switch providers.

Local Insight: Renewal Challenges and Opportunities in BC

Homeowners in Fraser Valley suburbs often carry larger mortgages than the national average, which amplifies the impact of even small rate increases. However, many have also built up significant equity due to home value appreciation over the past five years.

In Clayburn Hills (Abbotsford) or Panorama Ridge (Surrey), long-term homeowners can benefit by reviewing their amortization, considering equity-tapping options, or shortening their term to reduce interest paid.

Planning ahead ensures you’re not caught off guard — especially if you’re juggling other expenses or nearing retirement.

Final Thoughts: Take Control of Your Renewal

Mortgage renewal doesn’t need to be stressful or expensive — but it does require action. With higher rates, tighter lending rules, and changing life priorities, the renewal process is a key financial checkpoint.

Whether you stay with your current lender or switch, the best results come from:

Starting early
Reviewing your financial goals
Exploring all lender options
Asking the right questions

Renewing your mortgage in Surrey, Abbotsford, or anywhere in the Fraser Valley?
Let’s make sure you get the best deal — not just the easiest one.

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