Refinancing vs Renewing: How Lisa and Chris Lowered Payments and Upgraded Their Home

Buying a home is one of the biggest financial steps you’ll take – but managing your mortgage over time is just as important. One of the most common points of confusion is the difference between renewing your mortgage and refinancing it. The two may sound similar, but they can lead to very different financial outcomes.

Lisa and Chris’ story

Lisa and Chris bought their home a few years ago when mortgage rates were higher. Over time, they felt the strain of paying more interest than they’d like – and they also dreamed of a much-needed kitchen renovation to make their house feel more like home.

I reached out to them recently to share an opportunity: a lower mortgage rate was available, and refinancing could be the solution. After reviewing the numbers together, they decided to refinance. The outcome was powerful – lower monthly mortgage payments and access to home equity that allowed them to renovate their kitchen.

Now, Lisa and Chris enjoy a beautiful new kitchen space for family gatherings, all while saving money every month.

Renewal vs refinancing – what’s the difference?

Renewing: At the end of your mortgage term, you can renew into a new term, usually with the same lender. The structure of your mortgage doesn’t change – it simply continues with a new rate and term.
Refinancing: This is restructuring your mortgage before or at renewal. It may mean breaking your term (sometimes with a penalty), but it allows you to:

• Secure a lower rate
• Adjust the amortization or term
• Consolidate higher-interest debts
• Access home equity for major expenses or renovations

Why refinancing can make sense

• Lower your payments: Even after a penalty, refinancing into a lower rate can save you more over time.
• Debt consolidation: Credit card or personal loan balances with interest rates above 6% can often be rolled into your mortgage at a much lower rate.
• Tap into equity: Use the value you’ve built in your home for renovations, investments, or other life goals.

The big picture

Refinancing isn’t always the right move – but when it is, it can create both financial savings and lifestyle upgrades. Lisa and Chris’ story shows how proactive advice and clear planning can turn a mortgage decision into a wealth-building tool.

We don’t chase the lowest rate. We build the lowest cost of borrowing. Real estate is about clarity and readiness – being prepared to act when the opportunity makes sense. Support beats stress. Every time.

Book a call at www.mortgagecall.ca or email [email protected]