My renewal payment is becoming unaffordable. What options should I compare?

The client problem

The client signs the first renewal because the payment deadline feels urgent. A smaller payment elsewhere may hide fees, a longer amortization or a penalty that outweighs the savings.

A practical Ontario example

A payment rises by $650 while credit-card payments total $900. A refinance that clears expensive debt may improve monthly cash flow even if the mortgage rate is not the lowest. The full debt plan matters.

How the lending routes may differ

• A lender: best when income and credit support competitive switching or refinancing.
• Alternative/B: can use broader income methods and higher ratios where appropriate, with cost compared over the expected term.
• MIC/private: may create short breathing room for sale or credit repair, not a permanent affordability answer.

Policy boundary: FCAC expectations discussed here apply to federally regulated financial institutions and do not require every lender to offer the same relief.

Questions to ask now

• What payment is sustainable?
• Which debts can be cleared?
• What penalty and fees apply?
• Will the balance be lower or higher after the proposed term?

Rajiv’s practical view

Negotiate with the existing lender even when an outside switch cannot save enough. A documented outside comparison can help the client ask better renewal questions.