I had a client come to me last year who did everything right on paper. They renewed their mortgage at a great rate. Saved money every month. Then 18 months later, they found their dream home.

The mortgage they’d renewed? It became a $40,000 problem.

Their amortization had dropped to 20 years when they renewed. When they tried to port that mortgage to their new property, the lender carried it forward exactly as it was—short amortization, separate rate, locked structure. They needed to borrow more for the bigger home, but that 20-year amortization killed their debt-to-income ratio.

They couldn’t qualify for what they needed.

Breaking the mortgage cost them tens of thousands in penalties because they’d locked into a fixed rate. That penalty ate straight into their down payment and changed their entire budget.

The rate they saved 0.15% on? It cost them their upgrade.

The Lender Policy Minefield Most Homeowners Never See

When you’re renewing and thinking you might sell in the next couple years, the interest rate is actually the least important number on your renewal paperwork.

Here’s what actually matters:

Can you reamortize when you port? Some lenders let you reset to 30 years when you move the mortgage to a new property. Others lock you into whatever amortization you have remaining. That difference can swing your buying power by $100,000 or more.

What’s their rental property policy? I’ve seen a $200,000 gap in qualifying ability between two lenders looking at the same client with the same rental property. One lender counts 50% of rental income against your mortgage payment. Another counts 80% and factors in property taxes and insurance differently.

If you own a rental and you’re planning to keep it when you move, this policy difference determines whether you can afford your next home.

How do they treat your HELOC? Some lenders only look at what you owe on your home equity line of credit. Others look at the total available credit limit and count that entire amount against your debt ratio—even if you’re not using it.

I had a client with a $150,000 HELOC on a rental property with a $30,000 balance. One lender counted $30,000 against them. Another counted the full $150,000. Same person, same financial situation, completely different buying power.

The Variable Rate Strategy Nobody Talks About

Here’s something most homeowners never hear: some lenders will reimburse your penalty if you come back to them.

If you take a variable rate mortgage at renewal and you’re planning to sell within a year or two, certain lenders will let you break that mortgage, pay the three-month interest penalty, and then reimburse you that penalty when you come back for your new mortgage.

You get complete flexibility to reassess your financing once you’ve identified your new property. You can choose any term—fixed or variable, any length. And if that lender isn’t the right fit for your new purchase, you’re only looking at three months of interest to walk away.

Compare that to a fixed-rate penalty that can hit 4.5% of your mortgage balance.

On a $500,000 mortgage, that’s $22,500 versus $6,250.

The Amortization Setup That Protects Your Next Purchase

When someone tells me they’re planning to sell in the next year or two, I look at their whole situation. What property are they buying? Do they have rentals? What does their debt structure look like?

Then I figure out which lender gives them the best shot at qualifying for that next home.

If that lender has restrictive port policies—meaning they won’t let you reamortize when you move the mortgage—I pre-engineer the renewal to work around it.

We extend the amortization to 30 years now, at renewal, even if they’re down to 20 or 15 years remaining. When they port that mortgage in six months or a year, it still has a long amortization. The payment on the existing mortgage stays low, so when we add the additional borrowing for the bigger home, their cash flow can handle it.

You’re essentially building portability into a mortgage that doesn’t naturally have it.

What You Should Actually Ask at Renewal

When clients come to me fixated on rate, I show them two numbers side by side.

Here’s your budget if you renew with your current lender at that rate.

Here’s your budget if we renew with a different lender that has more flexible port policies or better rental property treatment.

When they see they can afford $150,000 more home with the “worse” rate, the conversation shifts fast.

The questions you need answered at renewal aren’t about rate comparison. They’re about:

• Can I extend my amortization while porting this mortgage?

• What percentage of my rental income will you count toward qualifying?

• Do you look at my HELOC balance or my total credit limit?

• What’s your actual port timeline—30 days or 120 days?

• How do you calculate IRD penalties?

These policy differences determine whether you can buy your next home, not the 0.15% rate difference you’re comparing on a spreadsheet.

What to Do Right Now

If you’re renewing in the next few months and you think you might sell in the next year or two, don’t just sign your renewal papers.

Think about what the next couple years look like. Are you planning to move? Do you have major expenses coming—kids starting school, renovations, buying a cottage, starting a business?

These life changes should shape your renewal strategy today.

The mortgage you renew today either opens doors or closes them.

Make sure you’re building flexibility, not locking yourself into a penalty trap that costs you the home you actually want to buy.