Income changed before mortgage renewal? Start here.

What changed since you took out the mortgage?

Write down the change in plain language: retirement, parental leave, fewer working hours, self-employment, a new job, separation or a missed payment. These are different situations. A lender needs evidence of the income and obligations you have now, not a broad label such as ‘lower income’.

Prepare two budgets: the payment you can sustain today and the payment you could manage if costs rise. Include taxes, heating, insurance, strata fees where applicable and other debts. Tell the broker your comfortable limit before comparing rates. Do not enter an old salary merely to make a calculator work.

When can an uninsured straight switch use the OSFI exception?

OSFI’s exception applies to an existing stand-alone uninsured mortgage switching between federally regulated institutions at renewal. The remaining contractual amortization cannot increase. The balance cannot increase except for up to $3,000 in related transaction costs; equity take-out is excluded. Stand-alone mortgages are amortizing and outside readvanceable combined loan plans.

The receiving lender still evaluates income, debt service and repayment capacity. Ask it to confirm the applicable qualifying rate and whether your mortgage structure meets the exception. Insured mortgages, credit unions, combined mortgage-and-credit-line plans and refinancing need their own review; do not assume the same rule applies to every transfer.

Compare the offer you can use, over the same period

Create a short comparison with one line per offer: balance, remaining amortization, term, contract rate, APR where available, monthly payment, fees, prepayment rights and penalty terms. Mark unknown costs as unknown. A rate card is a starting point for this review, not a lender commitment.

For example, a homeowner with a $400,000 balance and 20 years left should first compare offers using that same balance and 20-year repayment period. If one proposal instead uses 30 years, put it in a separate comparison. The payment can fall because repayment is stretched, even if the rate does not improve. Use the payment preview below, then request a written total-cost comparison.

Keep an application deadline and a fallback decision date. A cheaper offer that cannot close before maturity needs another plan. Confirm who will obtain the payout statement, register the new mortgage and settle any secured credit lines.

If renewal is close or a payment is becoming difficult

Contact your existing lender promptly and ask about the choices available for your circumstances. With a federally regulated lender, the renewal statement—or notice that it will not renew—must arrive at least 21 days before the term ends. Start the review earlier whenever possible.

For your first broker conversation, use a concise note: ‘My mortgage matures on [date]. The balance is [amount], with [years] remaining. My income changed because [reason]. My comfortable payment is [amount]. I have [other debts], and my lender has [offered renewal / requested documents / declined renewal]. What should we verify first?’ This lets the broker address the actual decision quickly.

If the available payment exceeds your budget, ask for options and their full costs before signing. Do not treat an alternative or private loan as an assured rescue. Fees, an exit plan, repayment capacity and timing all need a specific review.