Mortgage Blog

How Higher Interest Rates Affect Mortgage Renewals: A Broker's Guide to Saving Money in Burlington and Beyond

September 12, 2025 | Posted by: Matt Shepherd

Imagine receiving your mortgage renewal notice and seeing rates that could add thousands to your annual costs—it's a scenario playing out for many Ontario homeowners right now. But what if you could turn this challenge into an opportunity? Jason Woods, award-winning Principal Broker at Dominion Lending Centres - TLC Mortgage Group, believes that higher interest rates during renewals are precisely why consulting a broker is essential. In this in-depth exploration, we'll break down the effects of rising rates, share broker insights, and provide actionable steps to minimize costs.

The Economics Behind Rising Rates and Renewals

Interest rates set by the Bank of Canada influence everything from variable-rate mortgages to fixed-rate benchmarks. As of 2025, rates remain elevated due to inflation control measures, meaning renewals often come with steeper payments. For a $500,000 mortgage, a 2% rate increase could mean an extra $10,000 annually.

This environment highlights the value of broker services. Unlike banks, brokers like Jason Woods shop across 60+ lenders to find competitive rates, often beating direct offers. Our clients in Halton and Hamilton frequently report savings that offset rate hikes.

Broker Advantages in High-Rate Renewals

What sets a broker apart? It's the breadth of options and personalized advice. For first-time renewers or those with non-traditional income, we offer specialized guidance. Jason's decade-plus experience includes helping clients with bad credit mortgage solutions during renewals.

A client from Burlington shared: 'Despite higher market rates, Jason found a lender that approved my renewal at a rate I could afford—it was professional and reassuring.'

Learn more about our approach on Mortgage Renewals.

Step-by-Step Guide to Optimizing Your Renewal

Follow these steps to navigate higher rates:

1. Assess Your Current Mortgage: Review terms using tools like our Mortgage Calculators.

2. Get Pre-Approved Early: Secure a rate hold via Mortgage Pre-Approval.

3. Evaluate Refinancing: If renewal rates are prohibitive, consider Mortgage Refinancing for cash-out or debt consolidation.

4. Incorporate Equity Lending: Use home equity for better financial flexibility.

5. Compare Fixed and Variable Options:

Case Studies: Real Savings in Action

In one case, a Waterdown family facing a 5.8% renewal rate switched to a 5.1% fixed rate through our network, saving $15,000 over five years. Another in Aldershot combined renewal with debt consolidation, dropping their overall interest burden.

These successes contribute to our 98% recommendation rate—see Testimonials for more.

Addressing Challenges for Specific Clients

• Self-Employed Renewals: We verify income creatively to secure approvals.

• Challenged Credit: Specialized lenders help rebuild while renewing.

• New Immigrants: Tailored programs ease the process.

Future-Proofing Your Mortgage

With rates potentially fluctuating, ongoing broker support ensures adaptability. Our free consultations keep you informed.

Higher interest rates make broker expertise invaluable for renewals. Empower yourself with personalized options from Dominion Lending Centres - TLC Mortgage Group.

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