A Successful Remortgage Story: Navigating Rising Interest Rates

Welcome to Remortgaging.ca! Today, we bring you a heartening tale from our vast collection of homeowner stories. Dive in with us as we trace the journey of the Martins, a Canadian family who successfully navigated the turbulent waters of rising interest rates through remortgaging.


Interest rates – they have the power to dictate the financial landscape, especially for homeowners with mortgages. With whispers of rate hikes around the corner, the Martins faced a situation familiar to many Canadians. This is their story of proactivity, prudence, and timely decision-making.

1. Setting the Scene: The Martin Family’s Initial Mortgage

The Martins, a middle-class family from Toronto, secured a variable-rate mortgage five years ago. At the time, enjoying historically low rates, their monthly payments were comfortably within their budget. Their decision was validated when rates continued to drop. But as all economic cycles go, the descent soon gave way to a climb.

2. The Clouds Gather: BoC Announces Rate Hikes

As the Bank of Canada (BoC) announced impending rate hikes due to a resurgent economy, variable-rate mortgage holders like the Martins faced a potentially significant increase in their monthly payments. It was a wakeup call – were they prepared for the potential financial strain?

3. Considering the Options

Faced with the forecasted rate hikes, the Martins had several options:

  • Stay Put: Continue with their current mortgage and bear the higher costs.
  • Lock-in: Convert their variable-rate mortgage to a fixed-rate one, securing a consistent interest rate for the remainder of their term.
  • Remortgage: Explore the market for better rates or terms.

After meticulous research and consultations with financial advisors, the Martins chose to explore the remortgage option.

4. The Remortgage Process Begins

The Martins initiated the remortgaging process:

  • Equity Evaluation: They discovered they’d built significant equity in their home over the five years.
  • Current Mortgage Review: They analyzed their current mortgage terms, including any penalties for breaking it early.
  • Market Research: They compared current available mortgage offers. Fixed rates, though higher than their initial rate, were still comparatively lower than the projected rates.

5. Enter: The Mortgage Broker

Choosing to work with a mortgage broker was pivotal. Their broker:

  • Assessed their financial situation in detail.
  • Presented various remortgage options tailored to their needs.
  • Negotiated with lenders on their behalf.

6. The Decision: A Fixed-Rate Mortgage

Considering the rising interest rates, the Martins, with their broker’s recommendation, chose a fixed-rate mortgage. This would ensure consistent payments, shielding them from further rate hikes during their mortgage term.

7. Smooth Transition: The Remortgage Success

Successfully remortgaging before significant rate hikes, the Martins:

  • Secured a competitive fixed-rate, ensuring predictable monthly payments.
  • Leveraged their home’s equity, allowing them some additional funds for home improvements.
  • Enjoyed peace of mind, knowing they had preemptively navigated a potential financial strain.

8. The Aftermath: Navigating the New Mortgage

Post-remortgage, the Martins:

  • Adjusted their monthly budget to accommodate the new payment structure.
  • Used the additional funds from their home equity judiciously, investing in energy-efficient home improvements that further reduced their monthly bills.
  • Regularly reviewed their financial health, ensuring they stayed ahead of any potential economic challenges.

9. Lessons from the Martins

The Martins’ story offers valuable lessons for all homeowners:

  • Be Proactive: Stay informed about economic indicators. Anticipate changes rather than merely reacting to them.
  • Educate Yourself: Platforms like Remortgaging.ca offer invaluable insights. The more you know, the better your decisions.
  • Seek Expertise: A mortgage broker can be an essential partner, offering expert advice and facilitating negotiations.

10. A Future-Proof Strategy

While the Martins successfully navigated their immediate challenge, they adopted a future-proof approach:

  • Setting aside a rainy-day fund, preparing for unforeseen financial challenges.
  • Continually staying updated on the mortgage landscape.
  • Engaging in annual financial health check-ups, ensuring they always had a clear view of their position.


The realm of mortgages and remortgages can seem daunting, especially with shifting economic winds. However, as the Martins demonstrated, with proactive decision-making, a thirst for knowledge, and the right partners, it’s possible to navigate challenges successfully.

Stay tuned to Remortgaging.ca for more insights, stories, and expert advice on all things mortgage in Canada. Together, let’s build a financially secure future!

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