Hi,
Looking for some real-world perspective before our upcoming renewal on our primary residence in BC.
Our situation
We're renewing soon and leaning toward a 5-year variable for the flexibility to upsize if the right home comes along. Here's what we've been quoted:
- CanWise: 3.35% (covers legal & appraisal fees)
- Pine: 3.45% (fee coverage unclear)
- Our broker: 3.6%–3.7% (covers legal & appraisal fees, but steering us away from the fintechs)
- Banks: Not in the running as posted rates are mid-4s
Our broker's concern is that CanWise and Pine have strict owner-occupied clauses that create risk if our situation changes. He also acknowledges that carrying two mortgages would be a stretch for us, which makes me wonder how realistic that "risk" actually is.
My questions
- Owner-occupied clauses - how serious are they? Realistically, carrying two mortgages would be a stretch for us, so selling is the most likely outcome — but if circumstances changed and we did keep this as a rental, would the owner-occupied clause force us to break the mortgage and pay penalties?
- Pine's fee coverage - did they cover your legal and appraisal fees at renewal? CanWise and my broker have both confirmed they cover these, but I can't get a straight answer on Pine's policy.
- Porting & the "subject-to-sale" strategy - since two mortgages isn't realistic for us, we'd almost certainly sell this place before or simultaneously with buying the new one. If we use a subject-to-sale condition and coordinate same-day closings, does the owner-occupied clause even become an issue? How flexible are these lenders with porting?
- No HELOC - do you regret it? Neither CanWise nor Pine appears to offer a HELOC product. For those who went that route, has the absence of a HELOC ever been a real problem in practice?
- Hidden catches - are there any bona fide sales clauses, unusual discharge fees, or other fine-print surprises with these lenders that aren't obvious upfront?
Essentially: is the 25–35 bps savings worth it given our likely upgrade timeline, or are there legitimate reasons to pay up for a broker lender in our specific situation? Appreciate any firsthand experience - especially from anyone who weighed this same trade-off.