How Trump's Tariffs Are Affecting Your Mortgage Renewal Options with Kyle Green

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Mortgage Renewal Guide 2025: Expert Strategies for Lower Payments in Vancouver

Key Takeaways:

• The current lending environment features tight qualification criteria, making mortgage renewals often easier than refinancing or switching lenders
• Bank renewal offers have become more competitive recently, but you should always negotiate rather than accepting the first offer
• Fixed rate mortgages (currently around 3.99% for insured mortgages) are becoming increasingly popular due to market uncertainty, but variable rates may still save money with anticipated Bank of Canada rate cuts
• Re-amortizing your mortgage to 30 years and consolidating consumer debt can significantly reduce monthly payments when facing renewal payment shock
• Interest-only mortgage products are becoming more viable options as prime rates drop from the current 4.95%, especially for investment properties

The Current Mortgage Market: Navigating a Challenging Landscape

In a recent episode of the Vancouver Real Estate Podcast, hosts and Realtors Matt Scalena ^ Adam Scalena spoke with Kyle Green, CEO of the Green Mortgage Team and owner of Origin Mortgages, about the current state of the mortgage market and strategies for Metro Vancouver homeowners facing renewal in 2025-2026.

Green, with 18 years of experience as a mortgage broker, offers a unique perspective on the local market. While many in the industry are struggling, Green’s business is thriving—potentially on track for its second-best year ever. The reason? Difficult deals. “If you only specialize in easy deals, then this type of market generally is tougher for you as a broker. If you do the hard stuff, then when the market dries up and gets harder, at least you’re busy,” Green explains.

The market started 2025 with momentum, but tariff talks created uncertainty, particularly affecting first-time buyers who have “tapped the brakes.” However, Green notes that his typical clients—self-employed professionals and higher earners—tend to buy based on their personal circumstances rather than market conditions.

Understanding Mortgage Rates and Market Trends in 2025

The conversation highlighted how bond yields significantly impact fixed mortgage rates. Recent volatility in these yields due to tariff tensions between Canada and the US has created unpredictability in the mortgage market.

“Bond yields is what primarily impacts fixed rates,” Green explains. “If bond yields are going up, then fixed rates are going up. If bond yields are going down, then fixed rates are usually going down.”

Most economists predict the Bank of Canada will likely cut rates by about half a percent further from the current prime rate of 4.95%, benefiting variable-rate mortgage holders. However, on the fixed-rate side, “it’s kind of predicting that we’re already at the bottom and we’re likely to be slowly rising over time.”

This uncertainty has caused a significant shift in borrower behavior in the Metro Vancouver area. “I haven’t seen this many clients take a five-year fixed rate in probably three or four years,” Green notes, attributing this to borrowers not wanting to “gamble” after the painful rate increases many experienced in 2022.

Current Mortgage Rates in BC: What to Expect at Renewal

For homeowners in Metro Vancouver approaching renewal, Green outlines the current rate environment:

• Five-year fixed insured mortgages: around 3.99%
• Five-year fixed conventional mortgages: low 4% range
• Variable rates for conventional mortgages: prime (4.95%) minus 0.4-0.5%
• Variable rates for insured mortgages: prime minus 0.7-0.8%

These rates represent a significant increase from the sub-2% rates many homeowners secured five years ago, making strategic renewal planning essential.

Renewal vs. Refinance: Understanding Your Mortgage Options

One critical distinction Green emphasizes is the difference between renewal and refinance. With a renewal, “you just sign a piece of paper and it’s done.” No re-qualification required.

In contrast, refinancing means reapplying as if buying the home for the first time. This includes passing the stress test and providing full income documentation—what Green colorfully describes as jumping through “a hoop that’s on fire and it’s 10 feet up in the air.”

This difference becomes crucial for homeowners who may have experienced income changes or who are struggling with higher payments. If you can’t qualify for refinancing, renewal with your current lender might be your only option.

When to Start Preparing for Your Mortgage Renewal

Timing is critical for homeowners approaching mortgage renewal. While banks typically reach out about 4 months before your renewal date, you can be more strategic:

• 6-9 months before renewal: Start monitoring bond yields and mortgage rate trends
• 4 months before renewal: You can secure a rate hold with a new lender if rates are favorable
• 3-5 days: The typical period banks will hold special renewal rates

For those concerned about rising rates, Green suggests being proactive: “Get all your documents in, get all the information, updating an application, which then allows you to hold a rate and then you can kind of play that game.” With a 120-day rate hold in place, you can monitor the market and make a decision based on rate movements.

Strategic Approaches to Mortgage Renewal in 2025

For those approaching renewal in Metro Vancouver, Green offers several strategic approaches:

1. Evaluate refinancing vs. renewal options: If you have consumer debt, need access to equity for investments or renovations, or need to re-amortize to lower payments, refinancing might make financial sense despite the qualification hurdles.
2. Always negotiate your renewal rate: “Never take the first offer that the bank gives you,” Green advises. Even if the rate seems competitive, push back and ask for better. “Say, wow, that’s way too high… grind it out, why not?”
3. Compare with a mortgage broker: Take five minutes to email a mortgage broker with your bank’s offer to see if they can beat it. But calculate if the savings justify the effort—for a $200,000 mortgage, saving 0.2% might only be $1,200 over three years, while on a $2 million mortgage, the same rate difference saves $12,000.
4. Consider payment reduction strategies: Re-amortizing to 30 years or exploring interest-only options can significantly reduce monthly payments, especially helpful with rental properties where interest is tax-deductible.

How to Negotiate Your Mortgage Renewal

Green shares his personal approach to mortgage renewal negotiation:

1. Push back on the first offer, regardless of how competitive it seems
2. Tell the bank you know better rates are available elsewhere
3. Ask them to check with their manager for a better rate
4. Set a clear target rate and don’t sign until you get closer to it
5. Request that they hold the improved rate until your renewal date
6. Continue monitoring the market and ask for further improvements if conditions improve

This approach works particularly well in today’s competitive environment where banks are fighting harder to retain existing customers due to the overall slower mortgage market in BC.

Looking Forward: Mortgage Trends for 2025-2026

Looking ahead, Green anticipates a potentially tighter lending environment for homeowners in Metro Vancouver, with some banks already restricting debt service ratios for self-employed borrowers in certain industries including finance and real estate. However, this primarily affects new mortgages and refinances—not renewals.

The consensus appears to be that we won’t return to the ultra-low rates of 2020-2021. As Green puts it, “I think one of the lessons that I’ve learned…is just when you have more going on, you need a bigger nest egg of liquid funds to help weather a storm.”

FAQ: Mortgage Renewal in Vancouver 2025

What’s the difference between a mortgage renewal and refinance?

A renewal simply continues your mortgage with a new rate, requiring only your signature. A refinance requires full requalification including income verification, credit checks, and passing the stress test.

Do I need to pass the stress test for a mortgage renewal?

If you’re simply renewing with your current lender, no stress test is required. If switching lenders, you generally don’t need to stress test if your original mortgage was with a federally regulated lender, unless you’re increasing your loan amount.

When should I start preparing for my mortgage renewal?

While banks typically reach out 4 months before renewal, you can start shopping rates up to 120 days before your term expires. Having your documents ready even earlier can help you lock in rates if favorable opportunities arise.

Are variable rates better than fixed rates right now in BC?

While variable rates may save money with anticipated Bank of Canada rate cuts, fixed rates have become increasingly popular due to market uncertainty. According to Green, “I haven’t seen this many clients take a five-year fixed rate in probably three or four years.”

How much can I expect to save by shopping around for my mortgage renewal?

On a $200,000 mortgage, a 0.2% rate difference saves about $400 per year. On a typical Metro Vancouver mortgage of $1 million or more, the same rate difference could save $2,000+ annually, making it well worth the effort to shop around.

What are my options if I can’t afford the higher payments at renewal?

Consider re-amortizing to 30 years, consolidating consumer debt into your mortgage, or exploring interest-only mortgage products, particularly for investment properties. If these options aren’t viable, speaking with your lender about payment plans may be necessary.

How quickly do mortgage rates change in Canada?

According to Green, lenders typically adjust their rates after bond yields move and stay at a new level for 2-3 days. This means rates don’t change daily but can shift significantly within a week if market conditions change.

Last updated April 28, 2025 by Matt Scalena PREC