If you’re renewing your mortgage this year, starting your research early can help you get the best possible interest rate, better manage your cash flow and stay on track with your financial plan. Here are five smart strategies for renewing or refinancing your mortgage in 2025.
1. Plan ahead for your mortgage renewal
A little planning goes a long way—especially when it comes to your finances. You may have your mortgage renewal deadline on the calendar, but home owners can typically renew their mortgage up to 120 days in advance. Starting your search early can help you find better rates and allows you to make an unrushed, informed decision.
If you aren’t sure when your mortgage renewal deadline is, contact your lender for details. The more you know about your current mortgage agreement, the better your position will be for comparing rates and terms for renewal. Not all mortgages are created equal.
2. Shop around and consider moving your mortgage
Switching mortgage lenders at renewal can often get home owners access to a lower interest rate, and it never hurts to shop around. Remember, you have more options than just the big banks—credit unions have some of the lowest mortgage rates in Canada.
For example, Cambrian Credit Union, which serves Manitoba residents through its branches in Winnipeg and Selkirk and its Digital Branch, is currently offering a four-year fixed-rate mortgage with an interest rate of 3.94%. Learn more about Cambrian’s special mortgage rates.
Plus, Cambrian offers flexible options like debt consolidation and refinancing. And, in most cases, Cambrian will cover your mortgage transfer fees when switching your mortgage over.
3. Consolidate your loans
It may seem counterintuitive, but adding to your mortgage balance can sometimes save you money. Here’s how it works: if you’re carrying high-interest credit card debt (typically charging annual interest of 20% or more) or you need to borrow funds for home repairs, a new vehicle or another major expense, you can use your home equity to access funds with a lower interest rate.
Let’s say, for example, a home owner has $10,000 in credit card debt and needs $15,000 for a home renovation. When they renew their mortgage, they could borrow another $25,000 to cover these costs. Their mortgage balance will be higher, but consolidating their loans means paying less interest overall.
