If your mortgage renewal looks unaffordable, begin with a written picture of the payment change and your monthly budget. Contact your lender early and ask what options apply to your situation. Selling may be one option, but it should be compared with realistic ways of keeping the home.
Separate a temporary cash-flow problem from an ongoing affordability gap. That distinction helps you ask better questions before making a major decision.
Put the proposed payment into a complete budget
Write down the new payment, its start date, your take-home income and essential expenses. Include property taxes, insurance, utilities and predictable maintenance. If the home produces rent, use income you can reasonably expect to collect rather than an ideal future rent.
CMHC’s 2026 Mortgage Consumer Survey reported that 35% of renewers faced higher payments, with an average increase of $375 a month among that group. This is national survey context; your renewal terms and affordability may differ substantially.
If a proposed payment leaves a $600 monthly shortfall after essentials, what dependable change would cover that $7,200 annual gap? A one-time loan does not, by itself, remove a recurring shortfall.
Have a focused conversation with the lender
The FCAC describes expectations for banks assisting borrowers in financial difficulty. Ask your lender what relief or changes you may qualify for, what documents it needs and how each option affects your total cost. Availability depends on the lender and your circumstances.
- What payment options are available before renewal?
- Would changing the repayment schedule increase total interest?
- Are there fees or credit-reporting consequences?
- When will you receive a written response?
- If you sell, what payout and charges would apply?
Keep notes and written proposals. Do not assume a verbal discussion changes your payment obligations.
Compare the decision over more than one month
A lower monthly payment may help immediately while leaving a higher balance or extending repayment. Ask for a written illustration of the longer-term effect. If you consider another lender, account for qualification requirements and transfer or legal costs.
Build two practical scenarios: one for staying and one for selling. For staying, include a realistic reserve. For selling, include mortgage payout, transaction expenses, moving and the cost of your next home. Neither scenario is useful if it leaves essential expenses out.
If selling is an option, work backwards from the dates
Identify the renewal date, any lender deadlines, the time needed to obtain advice and a realistic closing window. Ask for an up-to-date valuation rather than basing the plan only on what you paid for the property.
A listed sale and a direct offer may have different prices, conditions and timing. Obtain enough detail to compare them. A proposed quick closing still needs legal work and a buyer able to perform.
You can request an initial property discussion without committing to sell. Share the address, condition and timeframe, but keep mortgage account numbers, bank statements and identity documents out of the website enquiry form.
Common questions
Should I sell before my mortgage renews?
There is no universal answer. Compare lender options, expected selling proceeds, charges and your next housing costs before deciding.
Will my lender automatically waive charges if I am struggling?
Do not assume so. Ask what relief applies to your circumstances and obtain the proposed terms in writing.
Prepared by Trusted Home Group for Ontario homeowners. This is general information, not advice on a particular transaction. Editorial approach and corrections.