Do You Have to Pass the Stress Test to Switch Lenders at Renewal?
When your mortgage renews, you are free to switch to any lender you want. The key question is whether the new lender puts you through the mortgage stress test again. The answer depends on the type of switch. If you make a straight switch, same balance and same amortization, you do not have to pass […]
How Mortgage Penalty Calculations Work at Renewal in Canada
The biggest myth about mortgage penalties: you pay one at renewal. You don’t. When your mortgage reaches maturity, you can walk away, stay with your lender, or switch to another bank without paying a single dollar in penalties. Penalties only bite when you break a closed mortgage before the maturity date arrives. Understanding when you’re […]
Does Breaking Your Mortgage to Buy a Rental Make the Interest Tax-Deductible?
When you borrow money to buy an income-producing asset such as a rental property, the interest on that borrowing is generally tax-deductible under CRA rules. The catch is the cost to access that money. If you break your mortgage mid-term or refinance to fund the rental, the penalty might outweigh the tax benefit. This is […]
Is It Worth Breaking Your Mortgage to Get a Lower Rate?
Breaking your mortgage is worth it when the interest you save over the remaining term is greater than the penalty you pay to break. That is the whole framework. Everything else is just filling in the numbers. Pekoe Mortgages is licensed in Ontario under FSRA Licence #13321 and in Alberta under RECA. We work with […]
Should You Switch Lenders at Mortgage Renewal?
Switching lenders at renewal often saves you money, because your current lender rarely offers its best rate on the renewal letter. Moving your mortgage to a new lender can secure a lower rate, but it comes with its own paperwork and a fresh approval. The right choice depends on the rate gap, any penalties, and […]
Do Mortgage Brokers Charge Fees in Canada?
For most residential mortgages in Canada, the borrower pays nothing to use a mortgage broker. The lender pays the broker a commission when the mortgage funds, so a typical buyer with good credit gets the service at no direct cost. Fees only appear in specific situations, usually private mortgages or difficult credit files. Knowing when […]
How to Make Your Mortgage Tax-Deductible in Canada
In Canada, your home mortgage interest is not tax-deductible by default, but there are legal strategies that convert it into deductible interest. The core idea is simple: the CRA lets you deduct interest on money borrowed to earn business or investment income, so the goal is to link your borrowing to income. Three main routes […]
The Smith Manoeuvre Explained for Canadian Homeowners
The Smith Manoeuvre is a Canadian tax strategy that converts the non-deductible interest on your home mortgage into tax-deductible investment interest. It lets you build an investment portfolio while you pay down your home, using the equity you create with every mortgage payment. The strategy was popularised by Fraser Smith and relies on a specific […]
How to Negotiate Your Mortgage Renewal Rate
You negotiate your mortgage renewal by refusing the first offer and showing your lender a better rate from the market. Lenders keep a lower retention rate in reserve, and they only release it when you signal you are ready to leave. The renewal letter is an opening bid, not a final price. A short, well-timed […]
Bridge Financing Canada: Costs, Lenders, and How It Works
Bridge financing in Canada solves one specific problem: you have bought a new home and your purchase closes before your sale does. The equity in your existing property exists on paper, but you cannot access it until the sale closes. A bridge loan advances that equity to you immediately, so both transactions complete without disruption. […]