A straight renewal scrap with the banks isn’t easy – but brokers have an ace up their sleeve
It’s no secret that major banks are locked in a ferocious war to keep existing customers and snag new business at renewal time, particularly with a recent rule change – the elimination of the stress test for uninsured borrowers when switching at renewal – making it easier for homeowners to change lenders.
For brokers, competing with the banks at renewal time is no easy feat. Still, while a straight renewal scrap might be difficult to win, there’s still a “massive opportunity” facing brokers in their ability to offer a clear value add that others can’t, according to Mortgage Outlet chief operating officer Leah Zlatkin (pictured top).
That’s because brokers’ services are needed more than ever amid turbulent and unpredictable economic times. “If you’ve got a client who you know is having some cashflow issues, maybe a refi to change their amortization; if somebody’s got some credit cards that they need to pay off, maybe a refi to help with that credit card debt,” Zlatkin told Canadian Mortgage Professional.
“There are lots of opportunities to move a renewal to a refi and that’s the game brokers should be playing right now: Number one, do you need more money? And if so, how can I help you restructure this? What can I do to help my existing clients?”
How brokers can tap into their secret weapon
The time for brokers to send a generic, automated letter or email to clients at renewal time has long passed, Zlatkin said, particularly with the banks hungrier than ever to secure that business. Instead, a personalized approach that also highlights the other services brokers can bring to the table should be the name of the game.
“It’s the time to call [clients] and say, ‘Hey, I know a lot of people are dealing with excessive credit card bills right now and are dealing with this, that and the other – do you want to chat about this? Are you having any of these kinds of things arise in your own life? Do you want me to help you with this? Do you want to talk about making sure you’ve got better cashflow, making sure you’ve got this or that?’
“There’s definitely a way to continue to secure your clients’ businesses. A straight renewal, you’re probably going to lose that.”
Canadian borrowers not feeling the strain despite higher rates
Much has been made of the looming wave of mortgage renewals in 2025 and 2026, many of which will see borrowers who secured a deal during the rock-bottom-rate environment of the pandemic face higher costs when they renew.
June and July are expected to be especially prominent months for renewal, with the battle between top banks set to intensify because of sluggish purchase activity in the current market – thanks, in part, to the economic chaos brought about by US president Donald Trump’s tariffs on Canada.
The outlook on the purchase side remains unclear. “Uncertainty leads to cold feet,” Zlatkin said. “Time will tell. The spring market might heat up. It really depends on where rates go right now. A lot of people are looking at uninsurable mortgages but they’re sitting mid-to-high fours right now, and they were high threes two or three weeks ago.
“So it’s a bit of a deterrent, but it’s a buyer’s market. And if you’re going to qualify, it could be a good time for you.”
CIBC sounded a positive note for current homeowners, though, signalling that Canadians who own their home are largely able to keep up with their mortgage payments even in the present volatile landscape.
A CIBC poll reveals that Canadian homeowners are confidently managing economic uncertainty despite rising living costs and fluctuating interest rates. https://t.co/cRX8jsm5pS
— Canadian Mortgage Professional Magazine (@CMPmagazine) March 26, 2025
Two-thirds of homeowners with a variable rate mortgage are unaffected by the prospect of higher payments with little to no impact on their standard of living, a poll by the banking giant recently revealed, while 59% of Canadians facing renewals say they’ll be able to maintain payments without breaking the budget.
Rates are also expected to continue falling, with the Bank of Canada rate projected to dip further in 2025 and potential drops ahead on the fixed side too.
Make sure to get all the latest news to your inbox on Canada’s mortgage and housing markets by signing up for our free daily newsletter here.
