Renewal Strategy

🔓 Need To Make Changes At Renewal?

Use your $1,300 Closing Cost Reward toward appraisal fees, legal costs, and other renewal-related expenses.

Use it anytime within 5 years.

No obligation • Takes about 30 seconds

⚡ In 20 Seconds

A homeowner with a bank mortgage and HELOC used their renewal to:

• consolidate ~$223,000 of debt

• reduce monthly payments by ~$1,406/month

• establish a new ~$180,000 HELOC

• create ~$43,988 in projected long-term savings

💡 Key insight: many homeowners seek these benefits through a refinance. This strategy achieved them while preserving access to lower mortgage rates.

🏠 Real Client Example

Ontario

The Situation

The client had:

• ~$416,000 mortgage balance

• ~15 years remaining

• An existing bank collateral charge mortgage with an attached HELOC

• ~$223,000 of additional debt

The debt included secured debt, unsecured lines of credit, and credit card balances.

Before renewal, the debt was restructured within the existing collateral charge mortgage in preparation for the upcoming renewal.

💡 This restructuring reduced borrowing costs and monthly payments immediately, rather than waiting until renewal.

After restructuring, total monthly debt obligations were approximately:

~$4,958/month

With renewal approaching, the objective was to determine whether monthly payments could be reduced even further while preserving access to lower long-term mortgage rates.

🔍 The Hidden Opportunity

The client already had a bank collateral charge mortgage with an existing HELOC structure.

🧩 The Real Problem

Like many homeowners, the client already had the right products in place. The challenge was that the mortgage, HELOC, lines of credit, and credit cards had never been managed as part of a coordinated financial strategy.

As a result, portions of the client's debt were carrying unnecessarily high borrowing costs despite having access to home equity.

The opportunity was not finding a different mortgage. It was optimizing how the existing structure was being used.

🎯 The Goal

Because the mortgage was approaching renewal, we had a rare opportunity to consolidate debt, reduce monthly payments, improve cash flow, and lower borrowing costs without paying a mortgage penalty.

The challenge was simple:

How do we get the benefits of a refinance while preserving access to lower mortgage rates?

Here's how it was done.

🔄 Step 1 — Repackage The Debt Before Renewal

The objective was to move as much debt as possible into a lower-rate mortgage structure.

The challenge was that the new lender could only accept debt that was already secured against the property.

They could not simply absorb the following debt directly into the new mortgage:

• unsecured lines of credit

• credit card balances

• other unsecured debt

🧩 The Solution

Fortunately, the client already had a bank collateral charge mortgage with an existing HELOC structure.

Because secured borrowing capacity was still available, we were able to use the HELOC to pay off and reposition eligible debt before renewal.

💡 This converted debt that was previously unsecured into debt secured against the property and allowed it to qualify for transfer as part of the renewal strategy.

Without this step, much of the debt would have remained outside the mortgage structure and would not have qualified for lower mortgage rates available through the renewal transfer.

💬 Do You Have Debt Outside Your Mortgage?

You may have opportunities to move higher-cost debt into a lower-rate mortgage structure, reduce monthly payments, and improve cash flow if you currently have:

• a mortgage

• a line of credit or HELOC balance

• credit card debt

💡 The earlier the review takes place, the more opportunities may be available —
and the greater the potential savings may be.

🔄 Step 2 — Consolidate Debt At Lower Mortgage Rates

At renewal, the specialized lender was able to accept the entire secured mortgage structure, including the existing mortgage balance and the debt repositioned before renewal.

⚙️ As part of the transfer:

• additional debt qualified for lower mortgage rates by being moved into the mortgage

• monthly payments were reduced by resetting the amortization from 15 years back to 25 years

• a ~$180,000 HELOC was established for future borrowing flexibility

✅ Immediate Results

Monthly Payments

• Reduced from ~$4,958 → ~$3,552

• ~$1,406/month lower payments

Mortgage Rate

• Reduced from 4.76% → 4.50%

Projected Five-Year Savings

• ~$7,594 projected interest savings

⚠️ The Hidden Cost Most Homeowners Never See

Normally, increasing debt and extending amortization would result in a refinance.

When a mortgage is classified as a refinance, borrowers often face higher mortgage rates than those available through a standard renewal or transfer for the lifetime of the mortgage.

The challenge was achieving the benefits of debt consolidation and lower monthly payments without permanently moving into higher refinance pricing.

🏠 Example Scenario

Example based on a ~$500,000 mortgage and 25-year amortization using First National pricing from May 7, 2026.

Renewal Pricing

• Rate: 4.39%

• Projected Interest Cost: ~$414,000

↓

Refinance Pricing

• Rate: 4.79%

• Projected Interest Cost: ~$454,000

Difference

• ~$40,000 additional interest

💡 Same mortgage. Same amortization. The only difference is the pricing category.

🎯 Final Outcome

💡 ~$43,988 projected long-term savings from avoiding refinance-style mortgage pricing

Monthly Cash Flow

✅ ~$1,406/month lower payments

Borrowing Capacity

✅ ~$180,000 HELOC established

✅ Additional secured borrowing capacity restored

Long-Term Impact

✅ Improved financial flexibility

✅ Avoided higher refinance-style mortgage pricing

👥 Know someone renewing their mortgage?

Share this example with homeowners looking to reduce monthly payments and potentially create significant long-term savings.

🏠 Renewal Costs Covered

While many homeowners focus on the upfront cost of making changes at renewal, the long-term cost of doing nothing can be significantly higher.

Through our reward and recovery programs, approximately ~$1,885 of renewal-related costs were covered, including:

✅ Appraisal ~$295

✅ Per diem interest ~$315

✅ HELOC setup fee ~$510

✅ Legal fees ~$765

Total covered: ~$1,885

🔒 Lock In Your $1,300 Closing Cost Reward

Planning to refinance, renew, or buy a home within the next few years?

Lock in up to $1,300 toward eligible mortgage-related closing costs and use it anytime within the next 5 years.

💡 For many clients, that's enough to cover most legal fees at closing.

Current program available until August 31, 2026. Beginning September 1, 2026, the maximum reward will be up to $1,000, with eligibility reduced to up to 3 years.

No obligation • Takes about 30 seconds

Joel Laceda Mortgage Agent Level 2

BRX Mortgage Inc. FSRA #13463

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