Mortgage renewal, tailored to your situation

If you're staying with your existing lender at renewal, no re-qualification is required — your bank must offer you a renewal regardless of current income. If you want to switch to a better rate, self-employed borrowers with 2 years of T1 Generals or NOAs qualify at A-lenders; newer businesses may need a stated-income program at 65–80% LTV.

Most A-lenders average commission and bonus income over your last 2 years of T1s. If income has grown, use the higher year; if it dropped, staying with your existing lender at renewal avoids the average calculation entirely — no re-qualification required.

Under 2 years of self-employment, most A-lenders won't fully qualify you at renewal-switch. Stay with your existing lender — no re-qualification required at renewal — until you have 2 clean years of T1 Generals. Then switch to a fully-qualified A rate.

You have three options: (1) one spouse buys the other out using a spousal buyout mortgage up to 95% LTV, (2) sell the home and split proceeds, or (3) renew jointly and defer the decision. A buyout at renewal avoids most break penalties and uses the CMHC/Sagen/Canada Guaranty spousal buyout program.

Staying with your existing lender at renewal requires no income re-qualification — this is critical if your household income has dropped. Only switching lenders triggers a full income review, so use the retention offer as your fallback while a broker shops for something better.

If you'll sell within 3 years, choose a short-term (1–3 year) fixed or a variable-rate mortgage. Longer 5-year fixed terms trigger massive Interest Rate Differential (IRD) penalties on early break — often $10,000–$30,000+. The rate premium on a shorter term is almost always less than a penalty later.

CPP, OAS, workplace pensions and RRIF withdrawals all count as qualifying income. Because pension income is often non-taxable or taxed at a lower rate, some lenders will gross it up by 10–25%. If you stay with your existing lender, no income re-qualification is required at all.

Your lender will send a renewal letter 30–120 days before maturity with 2–4 rate options. That first offer is almost always their worst — retention pricing lives one phone call away. Since November 2024, you can also switch lenders without the stress test at renewal.

Your first mortgage was likely under a New-to-Canada program with reduced credit history requirements. At renewal, if you've built 2+ years of clean Canadian credit (2 tradelines, one with a $2,000+ limit), you qualify for standard A-lender rates — often 0.20–0.40% better than a renewal offer under the same NTC program.

Your existing lender must offer you a renewal regardless of your current credit score — no re-qualification, no credit pull for approval purposes. Only switching lenders requires a fresh credit review. Take the retention offer as your safety net, then decide whether to shop.

Rental property renewals price 0.10–0.30% higher than owner-occupied because they're considered higher-risk. Most A-lenders use 50–80% of gross rental income for qualification. Staying with your existing lender avoids the rental add-back debate entirely — no re-qualification is required.

Second homes qualify for owner-occupied pricing at most A-lenders as long as it's used by family, not rented out. Rates typically match your primary residence. If it's year-round, road-access, and habitable, no rate premium applies — recreational-only properties price 0.10–0.25% higher.