In the Middle of a 10 Year Term? You Have Options!

Lisa Manwaring • February 12, 2020

If you bought a house, or had a mortgage renew roughly five years ago, there's a chance the struggling economy and the relatively low interest rate environment (at the time) influenced you to "play it safe" and lock in a mortgage term for the next ten years. Because, at the time, it seemed like interest rates couldn't go any lower and the difference in the interest rate between the five year fixed term, and the ten year fixed was negligible. Five years extra security made a lot of sense.

Without the benefit of a crystal ball, this looked like a good decision. However, unfortunately as interest rates have dropped even further, you're probably now stuck in a mortgage with a rate that is higher than what is currently being offered on the market. If you are second guessing your original decision. Don't. You made a decision based on the information you had at the time, if rates would've gone up, you'd be in a great place now. But, as that isn't the case, the best we can do is look for a silver lining, and here it is, did you know that there is a mandatory fine print clause in your ten year contract that might help you save money over the next five years?

After the first five years of a ten year term has been completed, the penalty to break the mortgage is three months interest, instead of the interest rate differential penalty. That's a really big deal!

It doesn't matter which lender you are with, this is actually a law in Canada, and not conditional upon the contract you signed with your lender. So, if the thought of an outrageous penalty has been keeping you from looking at all your options, you should really check out what is available on the market today.

Interest rates are really low, so low in fact that there's a chance you can switch out of your ten year rate into another mortgage product at a lower rate and not only cover the cost of the three month interest penalty, but actually be further ahead only a couple years into your new term. The real goal is to save thousands of dollars by switching, and that is very possible!

As each person's financial situation is different, rather than going through a hypothetical situation where we explain how this all works for hypothetical people, if you have made it this far, chances are this applies to you. You should really reach out and contact me to see about all your options, because you have options!.

There's no cost for my services, so let's see how much money you can save over the next five years!

LISA MANWARING

MORTGAGE EXPERT

LET'S TALK

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By Lisa Manwaring • October 15, 2025
Thinking of Buying a Home? Here’s Why Getting Pre-Approved Is Key If you’re ready to buy a home but aren’t sure where to begin, the answer is simple: start with a pre-approval. It’s one of the most important first steps in your home-buying journey—and here's why. Why a Pre-Approval is Crucial Imagine walking into a restaurant, hungry and excited to order, but unsure if your credit card will cover the bill. It’s the same situation with buying a home. You can browse listings online all day, but until you know how much you can afford, you’re just window shopping. Getting pre-approved for a mortgage is like finding out the price range you can comfortably shop within before you start looking at homes with a real estate agent. It sets you up for success and saves you from wasting time on properties that might be out of reach. What Exactly is a Pre-Approval? A pre-approval isn’t a guarantee. It’s not a promise that a lender will give you a mortgage no matter what happens with your finances. It’s more like a preview of your financial health, giving you a clear idea of how much you can borrow, based on the information you provide at the time. Think of it as a roadmap. After going through the pre-approval process, you’ll have a much clearer picture of what you can afford and what you need to do to make the final approval process smoother. What Happens During the Pre-Approval Process? When you apply for a pre-approval, lenders will look at a few key areas: Your income Your credit history Your assets and liabilities The property you’re interested in This comprehensive review will uncover any potential hurdles that could prevent you from securing financing later on. The earlier you identify these challenges, the better. Potential Issues a Pre-Approval Can Reveal Even if you feel confident that your finances are in good shape, a pre-approval might uncover issues you didn’t expect: Recent job changes or probation periods An income that’s heavily commission-based or reliant on extra shifts Errors or collections on your credit report Lack of a well-established credit history Insufficient funds saved for a down payment Existing debt reducing your qualification amount Any other financial blind spots you might not be aware of By addressing these issues early, you give yourself the best chance of securing the mortgage you need. A pre-approval makes sure there are no surprises along the way. Pre-Approval vs. Pre-Qualification: What’s the Difference? It’s important to understand that a pre-approval is more than just a quick online estimate. Unlike pre-qualification—which can sometimes be based on limited information and calculations—a pre-approval involves a thorough review of your finances. This includes looking at your credit report, providing detailed documents, and having a conversation with a mortgage professional about your options. Why Get Pre-Approved Now? The best time to secure a pre-approval is as soon as possible. The process is free and carries no risk—it just gives you a clear path forward. It’s never too early to start, and by doing so, you’ll be in a much stronger position when you're ready to make an offer on your dream home. Let’s Make Your Home Buying Journey Smooth A well-planned mortgage process can make all the difference in securing your home. If you’re ready to get pre-approved or just want to chat about your options, I’d love to help. Let’s make your home-buying experience a smooth and successful one!

Collections Can Prevent Mortgage Financing

By Lisa Manwaring • October 8, 2025
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