Mortgage renewal on a single income
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.
What makes this different
- One income now has to service the entire mortgage.
- Switching lenders triggers full qualification — the drop from two incomes to one can make it impossible.
- Parental leave income (EI top-ups, employer top-ups) is treated differently by every lender.
How to approach your renewal
Renew with your current lender first, always. This locks in a rate with no qualification risk.
If you want to shop, apply with a broker before you cancel the renewal — that way you know you're approved elsewhere before making any move.
Extending amortization is often the single most impactful lever. Moving a $500K mortgage from 20 to 30 years drops payment by roughly $700/month.
FAQ
It depends on the lender. Most A-lenders will use your pre-leave salary if you have a return-to-work letter. Some use EI benefits at 100%, others at 50%. A broker can match your file to the friendliest policy.
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Jay Klair, Mortgage Agent Level 2 (M09000869) — Real Mortgage Associates, FSRA #10464, part of the DLGC Group of Companies · 5675 Whittle Rd, Suite 100, Mississauga, ON L4Z 3P8