Short answer
Contact the lender before missing payments and ask for a documented assessment of relief measures. Available options depend on the lender, mortgage and hardship; no single measure is guaranteed.
The client problem behind this rule
The client waits because they are embarrassed or expects the problem to resolve next month. By the time the lender is contacted, payments may already be missed, credit may be damaged and the available choices may be narrower.
What the official source confirms
FCAC sets consumer-protection expectations for federally regulated mortgage providers when borrowers face exceptional circumstances. Potential relief may include payment adjustments, fee treatment or changes to amortization, depending on eligibility and lender assessment.
What this does not mean
FCAC is a regulator, not the lender’s underwriting department. Its expectations do not guarantee a new mortgage, refinance or specific concession. Credit unions, private lenders and other provincially regulated entities may operate under different rules and contracts.
A practical Ontario example
Illustration only: A homeowner has a temporary income interruption with meaningful equity and a return-to-work date. The first conversation should be with the existing lender about short-term relief. A refinance or second mortgage may be considered only after costs, timing and the exit plan are understood.
Practical mortgage routes to explore
Prepare a household cash-flow summary, hardship timeline and recovery plan. Ask the existing lender what it can change and whether interest is capitalized. Then compare a sale, A refinance, alternative solution, MIC or private bridge only if the numbers genuinely improve the outcome.
Questions to ask before relying on this rule
- Is this rule currently in force, future-dated, proposed or expired?
- Does it apply to an insured mortgage, an uninsured mortgage, a tax program or only a regulated institution?
- Which facts in my file have been verified, and which are still assumptions?
- What remains subject to the lender’s own income, credit, property and exception policy?
- If the preferred A-lender route does not work, what would an alternative/B, MIC or private option cost—and what is the exit plan?
Rajiv’s broker review
The official rule is the starting boundary, not the complete approval answer. I would verify the client’s timing, purpose, property, income, credit and available documents, compare the relevant lender policies, and then stress-test the practical options. A lower-rate route is not better if the client cannot complete the transaction or exit it safely.
Would a second opinion help? Ask Rajiv for a mortgage rule and strategy review. Bring the rule, deadline and concern so the conversation can focus on what is confirmed, what is missing and what may still be possible.