Refinancing your mortgage: Building the best mortgage for your needs

If your mortgage is up for renewal this year you’re not alone—and you’re likely facing vastly different financial conditions than when you signed your original contract. The good news? You’ve got options when it comes to mortgage refinancing and renewals. 

At SCU, our mortgages are made for real life.  We simplify the renewal process with flexible terms, competitive rates, and expert guidance, so you can feel confident about your next steps. Our exceptional knowledge of the Manitoba housing market  provides added flexibility, enabling us to create mortgages built around your needs, budget, and goals. 

Best of all, because we’re Manitoba-owned and operated, all financing decisions are made locally so you can count on SCU to build the best mortgage for your life. 

Renewal is a chance to reset your mortgage to fit your life today

A lot can change over a mortgage term. Whether you're navigating higher payments, planning for retirement, or simply rethinking your financial goals, renewal time is an opportunity to make sure your mortgage still fits your life.

Reviewing your options

It might be tempting to sign your renewal offer and move on, but taking time to explore your options could save you money and better align your mortgage with your current needs. Our lending specialists can help you compare rates, terms, and features to make the most of your renewal.

Things to consider at renewal time

Re-evaluate your financial goals

Mortgage renewal is a great time to consider what is on the horizon for you. Are you planning to renovate? Downsize? Start a business? Purchase a rental property? Your mortgage should reflect your future plans, not just your past needs. Consider talking to a lending specialist about the possibility of tapping into your home’s equity to fulfill your financial goals. Wherever you’re going, a lending specialist can help structure your new term around what’s next for you.

Consider switching from variable to fixed 

If you've been riding the wave of variable mortgage rates, renewal may be the right time to lock into a fixed rate. It can provide greater predictability, peace of mind, and potentially lower costs if rates rise again.

Think about prepayment options

Looking to pay off your mortgage faster? With SCU’s 20% prepayment privilege, you have the freedom and flexibility to make lump sum payments or increase monthly payments without penalties.

Review your amortization period

Want to reduce your monthly costs? Extending your amortization could help, though you may pay more interest in the long run. Want to pay off your mortgage faster? Shortening your amortization may increase payments, but save you interest overall.

Thinking bigger? You may want to refinance instead
While renewing typically means signing a new term with your existing lender, you might also consider renegotiating or refinancing your mortgage—especially if you want to:

• Access home equity
• Fund a renovation or large purchase
• Consolidate high-interest debt
• Adjust your monthly payments
• Buy a second property

Two refinancing options to consider

Renegotiating your mortgage contract

This involves breaking your existing contract and replacing it with a new one. If current posted rates are significantly lower than your current rate, this move could save you money, even after considering any fees or prepayment penalties. Our blend and extend option allows you to combine your current rate with today's rates and extend your term, often avoiding the full cost of breaking your mortage. 

Want to keep your existing mortgage intact?

If you have at least 20% equity in your home, our multi-purpose mortgage lets you access funds through a separate loan, giving you flexibility without penalty. 

Use it for:

• Renovations: With the potential to borrow based on your home’s "as completed" value, refinancing can provide a convenient, affordable way to access funds for renovations that increase the value of your home.
• A second property: Use your equity to help fund a down payment.
• Debt consolidation: Combine multiple debts into one lower-rate payment. Wrapping up high-interest debt into one mortgage payment with a lower interest rate can help you save money and manage your finances more effectively. If you’re consolidating debt, it’s important to have a repayment plan in place so you stay on track.

Three expert refinancing tips

Refinancing your mortgage gives you access to home equity at lower interest rates—with the convenience of a single monthly payment. Here are three expert tips from our lending team to help guide your decision:

Choose an amortization schedule that matches your goals

When you refinance, you may have the option to change your amortization schedule. For debt consolidation, we may recommend keeping your current schedule to help you pay off debt faster. But if you’re refinancing to renovate, extending your schedule can lower your monthly payments and give you some breathing room, especially if the renovation adds value to your home.

Focus on high-return upgrades

Some upgrades go further than others in increasing your home’s resale value. Kitchens, bathrooms, and curb appeal improvements often yield the best return. Before committing to a project, consider talking to a realtor or appraiser to make sure your investment is worthwhile. If your home doesn’t have enough equity to cover the renovation, we may be able to base your financing on its estimated value once the work is completed. 

Tap into equity for your next home

Planning to move? Accessing equity from your current home can boost your down payment on a new one, reducing your monthly mortgage payments and helping you avoid mortgage insurance premiums. Our team can help you decide whether to blend rates, switch to a fixed rate, or explore other ways to structure your financing.