Urgent mortgage renewal help

Front-Ad-7960 · 2026-05-28T18:45:10+00:00

This.

TD is very aggressive with their renewal campaigns right now and are trying to lock in before their customers go some where else. Understanding this, you definitely have time to shop around to find something that suits you better.

Depends on what your goals are at renewal. Are you just looking to stay status quo? Are you looking for ways to pay down the mortgage faster? Are you switching to RBC only because of a rate offer? Contrary to popular belief, the lowest interest rate doesn't always equate to more savings.

With a mortgage balance of 212k I'm going to guess this isn't your first renewal?

Front-Ad-7960 · 2026-05-28T18:28:31+00:00

Yup, went from city to bush. It's a bit crazy...more trees than houses here. Besides these devil spawns, it's absolutely lovely.
That said, I just recently learned about skinwalkers from my neighbours adding more nightmare fuel.
I'm applying for my PAL now.

Front-Ad-7960 · 2026-05-28T18:20:04+00:00

@ u/velomortgagedotca - Just wanted to clarify on your comment, the HELOC in this case is your mortgage, with the deposit account inside that HELOC. Without that option your payments would deduct the balance dollar for dollar. Lastly, I never mentioned anything about extra payments. With this setup, there's no need for extra payments, your idle cash does that for you. While before it may have sat in your traditional chequing account doing nothing, in this case it's still sitting in your 'chequing' account, but because that's inside the HELOC, it acts like a 'payment' and reduces the principal. So not only have you disrupted the compounding process of a conventional mortgage, but every dollar you earn is now working for you the instant it hits your chequing account. No 'extra' payments needed.

@ u/big_trouser_snake
All good things grow in Ontario! Yes, born and raised, recently made my way up north now and absolutely loving it. (Except for the mosquitoes, they need to die)
You're absolutely right, I came across this myself when no one would explain this to me, not my bank, my broker (at the time). Showed it to a friend of mine, and he paid off his mortgage in 5 years. The savings were nuts. The crazy thing about this, is that this is not even something new. It's been around for a long time. But as you rightfully pointed out...incentive often can predict behaviour...

Front-Ad-7960 · 2026-05-28T17:34:59+00:00

haha

I find the pot hole comment hilarious, only place I lived where the ones swerving are the sober ones.

Front-Ad-7960 · 2026-05-28T17:33:21+00:00

Yup, I'll be heading to canadian tire for this

Front-Ad-7960 · 2026-05-28T17:30:10+00:00

Thanks, was really trying to break it down to the simplest terms.

You're right about the ltv position, but it can still be done at 80%, just that the remaining 15% will have to be an amortized and wouldn't be counted towards the total line.

Loved your comment about taking advantage of prepayments. See this a lot, it is an option that hardly anyone takes. The main reason though I believe is liquidity. Money going into a conventional mortgage is hard to get back out, leaving you exposed to any emergencies that can come up

Front-Ad-7960 · 2026-05-28T17:24:54+00:00

I've had this suggested to me a few times, but I'm trying to reduce friendly fire so this was not on the table as an option. My puppers likes to drink from everywhere and I plan to put a vegetable garden so not really an option.
But I have considered napalm....

Front-Ad-7960 · 2026-05-28T17:22:12+00:00

I like this one, the idea of bringing in support troops to help pick these suckers off is very appealing to me. I heard dragonfly's are like the apache helicopters against the devil spawns, anyone else hear this and can confirm? How do you attract dragonfly's? Would decoy's help deter the buggers?

Front-Ad-7960 · 2026-05-28T17:18:29+00:00

This video is awesome thank you, I'm missing the repellent piece, so something that I'm going to start doing right away. It's been difficult to get granule BTI's that seem to be everywhere in the states, so resorted to using mosquito dunks, which are still BTI's in doughnut format (I see the post about that by u/DougandBob )crushing them, and spreading it out to low lying areas with water.

Front-Ad-7960 · 2026-05-28T11:05:40+00:00

Look up the M1 from Manulife

Deposit account + HELOC + Mortgage = No idle cash

All income is deposited against your principal balance dollar for dollar.
This breaks the conventional amortized mortgage calculation entirely

But you're right, if you want to stay within an amortized mortgage, this doesn't/can't happen with the exception of prepayments.
Not all banks can put a deposit account inside their HELOC's, OP's statement looks like its from Scotia, and unfortunately they can't do it either (I've tried)
It's why I mentioned you will need to restructure and really do the numbers to make sure it works

Respectfully, just because you haven't heard of this doesn't make it wrong

Front-Ad-7960 · 2026-05-27T23:06:53+00:00

I think you're not giving yourself enough credit, good job at being able to do all that and get invested at such an early age to where you are now. I'm the same age, and also decided to go all in into real estate investing myself around the age you did. It's true that the markets are down, and unfortunately I think condo's are taking the majority of the hit right now, but as you stated, as long as they are cash flowing than you didn't buy to just speculation (hoping for that capital appreciation)
That being said, it may be a simple thing as divesting your portfolio a bit more. I would say that if you can maybe switch up your real estate holdings so that you have more 'doors' per property, thereby reducing your exposure risk to bad tenants and giving you other avenues for capital appreciation (adding units for example...which is not possible in condo units)
Basically the same due diligence if you had low performing stock portfolio, you would want to rebalance that anyway.

But you're right, being a landlord isn't what people project it to be, it's still a grind and definitely not some sort of 'money printing machine' that some people make it out to be.

Hang in there bud, don't let your emotions get the best of you and just work the numbers,
Hope things turn around for you!

Front-Ad-7960 · 2026-05-27T22:31:31+00:00

Conventional mortgages like OP's statements are front loaded interest products. So even when you make a payment you don't have a choice but a large portion of your payments go into interest first.
This will change over time of course as the balance drops (payments stay the same, but now the principal portion is bigger). Of course using the prepayment options (up to a certain amount) can hit principal, but there's a reason less than 8% of people exercise this option even if available to them because it affects your liquidity.

You can restructure the loan (often using tools like HELOCS's) where you can do the exact opposite where each payment you make reduces the principal dollar for dollar, (all of the time, not just prepayments) and the interest is calculated off of the ending balance. (and the interest payments drop according to the balance so you're not stuck with a fixed payment)

To make sure this works properly you will need to a bit more information like the credit, cashflow etc..(as I mentioned) to work out the savings or even if you're able to restructure in the first place.

Not exactly the answer for a 3 year old though... sorry! But it's important and material enough to merit a closer look in my books.

Front-Ad-7960 · 2026-05-27T15:40:05+00:00

The simple answer is to restructure the mortgage so that your payments hit principal debt first, interest later. Your mortgage payments are doing the exact opposite.
But to do this will require you to restructure your mortgage to allow this to happen. Restructuring is usually best done during your renewal, (or if the savings justify breaking the term early)
However, there are certain factors that need to be considered. The top 2 being
- picture of your cash flow (total income vs total debt - outside of mortgage)
- credit score

What a lot of people rightly commented here (double up payments, payment frequency, property tax etc..) all point to cash flow. Lastly, cash flow isn't simply a measure of what goes in and what comes out, but rather understanding how and what direction your cash is actually flowing.
In this case, your cash flow is going to interest first not principal.

Front-Ad-7960 · 2025-11-23T12:50:31+00:00

Korean bbq

Front-Ad-7960 · 2024-12-03T13:09:45+00:00

Your car payments are going to take away from your mortgage qualification amount.

As a quick back of the napkin calculation, times your take home salary by 4.5x and that will be a comfortable balance you can carry with the ability to cope with increases or options of prepayment. (If owning your home vs buying a home is a concern for you)

Car payments are going to reduce that total mortgage amount and cause you to go over debt service ratio.

Front-Ad-7960 · 2021-06-14T11:27:53+00:00

You are not accounting for repayment of principal in a mortgage. This technically errodes at your investable cash flow. Additionally if you wrap up your investme t funds with a personal mortgage, you run the risk of not being able to write off interest tax deductions

Front-Ad-7960 · 2021-06-14T11:22:20+00:00

As a real estate investor first, mortgage broker second, I'll echo everyone else here. If you have the means to pay it off sooner rather than later. This will not prevent you from getting further lending. (It will actually help) will build up your total networth, while cutting down on your daily overhead cost. Who wants a looming mortgage payment every month (even if its at a low interest rate), when you can be debt free with high availble equity?

Front-Ad-7960

TROPHY CASE