Renewals, Refinances, and the Art of Kicking Debt to the Curb
Real mortgage talk from a mortgage agent dad with a toddler, a baby on the way, and a dangerously high caffeine intake ☕
If you hear a thump while reading this, that’s probably my toddler launching a toy truck across the room like it’s an Olympic event. And if I sound a little tired… well, we’ve got a baby on the way. Sleep is currently more of a concept than a reality.
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Between diapers, daycare costs, and discovering that toddlers eat like linebackers one day and birds the next, cash flow is a very real topic in my house right now. Which is exactly why I want to talk about mortgage renewals, mortgage refinancing, and debt consolidation—not from a corporate script, but from real life.
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Because let’s be honest: adulting is expensive. Parenting? Even more so. Porque la vida no da descuentos.
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Mortgage Renewal vs. Refinance (Explained Like You’re Running on No Sleep)
When you’re juggling work, family, and a mental to-do list longer than a Costco receipt, financial jargon is the last thing you want. So let’s keep this simple.
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🔁 What Is a Mortgage Renewal?
A mortgage renewal happens when your current mortgage term ends (usually every 3–5 years in Canada).
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At renewal:
- You already have a mortgage
- You choose a new interest rate and term
- You can make changes—but most people don’t
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Most lenders send a letter that says, “Here’s your new rate. Sign here.”
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That’s basically the financial version of your kid saying, “Don’t worry about it,” which we all know is when you should absolutely worry about it.
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As a dad, I’ve learned an important lesson: if you don’t ask questions, it usually costs you money.
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🔄 What Is a Mortgage Refinance?
A mortgage refinance lets you restructure your mortgage and access home equity.
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Homeowners refinance to:
- Consolidate high-interest debt
- Lower monthly payments
- Improve cash flow
- Create financial breathing room
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In parenting terms, refinancing is like finally organizing the diaper bag so you’re not digging for wipes during a crisis.
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Why Debt Consolidation Matters (Especially for Families)
Before kids, debt feels annoying. After kids, debt feels personal.
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Suddenly you’re thinking:
- “Why is daycare more than my first apartment?”
- “Why am I paying 22% interest on a credit card?”
- “How did this tiny human go through three outfits today?”
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High-interest debt like credit cards and lines of credit can quietly drain your finances.
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By using a mortgage refinance to consolidate debt, you can:
- Replace high-interest debt with a lower mortgage rate
- Combine multiple payments into one
- Improve monthly cash flow
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That extra monthly room in the budget? That’s groceries. That’s RESP contributions.
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That’s fewer late-night money arguments when everyone is overtired and someone forgot to defrost the chicken.
Menos estrés. Más control.
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A Real-Life Debt Consolidation Example (Judgment-Free Zone)
Let’s say a household has:
- $20,000 in credit card debt
- $15,000 on a line of credit
- $10,000 remaining on a car loan
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That’s $45,000 in debt—often costing $1,200–$1,500 per month.
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By refinancing their mortgage and consolidating that debt:
- Interest rates are significantly reduced
- Monthly payments often decrease
- Cash flow improves immediately
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Yes, the debt may be amortized over a longer period. But here’s the key part most people miss:
💡 You can still make prepayments
💡 You stop bleeding interest
💡 You regain control
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Esto no es una mala decisión. Es una decisión inteligente.
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“Isn’t Consolidating Debt Into a Mortgage a Bad Idea?”
Short answer: not when done properly.
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Debt consolidation works best when:
- There’s a clear plan
- Spending habits are addressed
- High-interest accounts are reduced or closed
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I often tell clients:
“This is a financial reset—not a permission slip.”
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As a parent, resets are underrated. (So are naps.)
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Why Mortgage Renewal Time Is a Huge Opportunity
Mortgage renewal time is one of the best moments to review your finances.
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Often, there are:
- No penalties
- More lender options
- Greater flexibility to restructure
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Instead of auto-renewing, this is the time to ask:
- Can I lower my interest rate?
- Can I consolidate debt?
- Can my mortgage better support my family’s goals?
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Your mortgage shouldn’t just exist—it should work harder than you do after bedtime.
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A Mortgage Agent Who Gets Real Life
As a mortgage agent—and a dad—I don’t just look at rates.
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I look at:
- Monthly stress
- Parental leave planning
- Growing family expenses
- Long-term stability
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If restructuring a mortgage means:
- You sleep better
- You worry less about money
- You focus more on family
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Entonces vale la pena.
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Final Thoughts (From a Dad in the Trenches)
Between chasing a toddler and preparing for another baby, I understand how fast life—and expenses—change.
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Mortgage renewals and refinances aren’t just paperwork. They’re tools. Tools to simplify debt. Tools to improve cash flow. Tools to build stability for your family.
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If you’re approaching a mortgage renewal or thinking about refinancing to consolidate debt, let’s at least talk it through.
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Best case? You save money and gain peace of mind.
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Worst case? You learn something.
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And if nothing else, you’ll get advice from someone who’s probably had coffee spill on them in the last hour.
Porque al final del día, we’re all just trying to give our kids a better future—preferably without credit card interest rates tagging along.
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Let’s connect!
Email: ktrujillo@dominionlending.ca
Phone: (519) 807-9242
Website: https://kevintrujillo.ca/
App: https://velocity.newton.ca/sso/public.php?sc=kdqtov11nppv