Mortgage Renewal Myths: Expert Victor Tran Debunks Common Misconceptions
As mortgage renewal season approaches for many homeowners across Canada, understanding the realities versus the myths can make a significant difference in financial outcomes. Victor Tran, a respected mortgage and real estate expert at Rates.ca, recently sat down with Financial Post journalist Larysa Harapyn to clarify what homeowners should truly expect when their mortgage term concludes.
Navigating the Renewal Process
Mortgage renewal is a critical financial milestone that often comes with misconceptions that could lead to costly decisions. Tran emphasizes that homeowners need to be proactive and well-informed as they approach this juncture. "Many borrowers assume renewal is automatic or that sticking with their current lender is always the best option," Tran notes. This is far from the truth, and exploring alternatives can yield better rates and terms.
Common myths include the belief that interest rates are fixed during renewal or that penalties are negligible. In reality, rates can fluctuate based on market conditions, and switching lenders might involve fees that need careful consideration. Tran advises homeowners to start the renewal process several months in advance to allow time for research and negotiation.
Key Considerations for Homeowners
To avoid pitfalls, Tran outlines several essential steps:
- Review Your Financial Situation: Assess changes in income, credit score, and overall debt since your original mortgage.
- Shop Around: Compare offers from multiple lenders, including banks, credit unions, and mortgage brokers.
- Understand Terms and Conditions: Scrutinize fine print regarding prepayment options, penalties, and rate adjustments.
- Consult a Professional: Seek advice from mortgage experts like those at Rates.ca to navigate complex decisions.
This discussion, originally published on February 26, 2026, highlights the importance of debunking myths to empower homeowners. With housing markets evolving, staying informed is more crucial than ever. Tran's insights serve as a valuable resource for anyone facing mortgage renewal, ensuring they make choices aligned with their long-term financial health.
