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Get My Free Estimate →Call the lender before you miss a payment. Almost every option is more available before default than after. The Financial Consumer Agency of Canada publishes the list: renegotiating the mortgage (converting variable to fixed, blend-to-term, blend-and-extend); using mortgage features (prepay and re-borrow, skip a payment, HELOC, credit insurance claim); relief measures (payment deferral, extended deferral, extension of amortization, special payment arrangements, capitalization, interest-only payments); and a sale by borrower plan. Each has a cost — FCAC’s own warning is that these “may end up increasing the total cost owing.” The enforceable backstop is FCAC’s Guideline on Existing Consumer Mortgage Loans in Exceptional Circumstances; the Canadian Mortgage Charter sets expectations but is not law.
Almost nobody writes this page, because it is uncomfortable and because it does not generate listings. But if the renewal number does not work, the worst thing that happens is that nothing happens for six months while the options quietly close. So here is what exists, named the way the federal government names it, with no recommendation attached to any of it.
What this page is not. I am the Broker of Record at RE/MAX Quantum Realty. I am not a mortgage professional, a financial planner, a credit counsellor or a licensed insolvency trustee. Nothing below is advice about what you should do. It is a list of what exists, with the source, so that you know what to ask for and who to ask. Several of these options have real costs that are not obvious, and the government’s own cautions are quoted alongside them.
Start with the one thing that is genuinely urgent
Call the lender before you miss a payment, not after. Almost every option below is more available before default than after it. The Financial Consumer Agency of Canada’s guidance to federally regulated institutions is directed at “consumers at risk” — people “experiencing severe financial stress… and at risk of mortgage default” — which is a category you are in before anything has gone wrong on the file.
The options, as the federal government names them
These come from the Financial Consumer Agency of Canada’s “Mortgage relief options” page. The groupings and the names are theirs.
Renegotiating your current mortgage
| Option | What it is |
|---|---|
| Converting variable to fixed | Moving from a variable rate to a fixed rate within the existing term. |
| Blend-to-term | Blending your existing rate with a current rate, keeping the existing term end date. |
| Blend-and-extend | Blending the rates and extending the term. |
Leveraging your mortgage features
| Option | What it is |
|---|---|
| Prepaying and re-borrowing | Using a prepayment privilege and a re-borrowing feature, where the mortgage has one. |
| Skip a payment | A contractual feature on some mortgages allowing one or more payments to be missed. |
| Home equity line of credit | Drawing on a HELOC. |
| Credit insurance claim | Where the mortgage carries job loss or disability insurance and the trigger has occurred. |
The government’s own caution on the third of those, quoted: “Using a HELOC to make your mortgage payment may put you at risk.” It is on the list because it exists, not because it is a good idea.
Other mortgage relief measures
| Option | What it is |
|---|---|
| Mortgage payment deferral | Payments paused for an agreed period. Interest continues to accrue. |
| Extended mortgage payment deferrals | A longer pause, by agreement. |
| Extension of amortization | Stretching the repayment period to lower the monthly payment. |
| Special payment arrangements | A tailored arrangement with the lender. |
| Capitalization | Adding missed payments and arrears to the principal. |
| Interest only payments | Paying interest only for a period, so principal does not reduce. |
Selling your home
| Option | What it is |
|---|---|
| Sale by borrower plan | An arrangement under which the borrower sells the property, rather than the lender enforcing. |
What each of these costs, in the government’s own words
The Financial Consumer Agency of Canada does not present these as free, and neither should anyone else. Quoted directly:
- “Mortgage relief measures may end up increasing the total cost owing over the total length of your mortgage.”
- “Think twice before extending your amortization to lower your payments. The interest costs that you will need to pay will be higher.”
- “Using a HELOC to make your mortgage payment may put you at risk.”
A deferral does not make a payment disappear. Interest accrues on the deferred amount and the balance grows. An extended amortization lowers the monthly figure and raises the lifetime figure. Capitalization moves arrears into principal, which is often the right call and is not the same as making them go away. None of these is bad. All of them have a price, and the price should be stated before the paperwork is signed.
What lenders are expected to do
Two instruments sit behind this, and it is worth knowing which is which.
The Canadian Mortgage Charter, introduced in the 2023 Fall Economic Statement, sets expectations for federally regulated financial institutions. Its commitments include temporary extensions of amortization for those at risk; waiving fees and costs associated with relief measures for a limited period; permitting insured mortgage holders to switch lenders at renewal without requalifying; proactive communication from lenders four to six months before renewal; options to make lump sum payments or sell without prepayment penalties; and avoiding charging interest on interest during periods of negative amortization.
The Charter is not legislation. It states expectations. The enforceable instrument is the Financial Consumer Agency of Canada’s Guideline on Existing Consumer Mortgage Loans in Exceptional Circumstances, issued 5 July 2023, which applies to federally regulated financial institutions and which FCAC monitors for compliance. That guideline directs institutions to consider “waiving prepayment penalties, waiving internal fees and costs, not charging interest on interest, and extending amortization.”
If you are being told something is not possible, it is fair to ask whether the lender has considered the measures named in that guideline. Quoting it by name changes the conversation.
Where a realtor fits, and where one does not
Honestly: mostly I do not. The first four groups above are between you and your lender, and a mortgage broker will be more useful to you than I will be. Where I am useful is narrow and specific:
- Telling you what the property is actually worth today, accurately and without inflating it to win the listing. Whether selling is even an option depends on that number against the mortgage balance, and you need it to be right rather than encouraging.
- Telling you how long a sale would realistically take in the current market for that specific property type, so it can be weighed against a lender’s timeline.
- Telling you when not to sell. If a deferral or an amortization extension gets you through a temporary problem and selling would crystallise a loss, that is the answer and I will say so.
Who to actually call
| If | Who |
|---|---|
| You want to understand your mortgage options | Your lender directly, and a mortgage broker for a second view |
| You want independent help with debt across several creditors | A non-profit credit counselling agency |
| Insolvency is on the table | A Licensed Insolvency Trustee — the only professionals authorised to administer insolvency proceedings in Canada |
| Your lender has started enforcement | A lawyer, immediately |
| You want to know what the property is worth before deciding anything | Me, and I will give you the real number |
The delinquency numbers say this is happening to more people than it was: the Toronto 90-plus-day rate rose from 0.20 per cent to 0.29 per cent year over year. It is still under three mortgages in a thousand. If you are one of them, you are not an anomaly and there is nothing unusual about needing to have this conversation.
Need to know what the property is actually worth?
Not an inflated number to win a listing — the real one, so you can weigh selling against staying. I will give you a straight valuation and tell you if the answer is to hold. No obligation, no follow-up campaign, and I will say plainly if a mortgage broker or a trustee is who you actually need.
connect@jatindua.com · 437-987-1925 · Book a free consultation
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Frequently asked questions
What should I do first if I cannot afford my renewal?
Contact the lender before missing a payment. The Financial Consumer Agency of Canada’s guidance to federally regulated institutions is aimed at consumers experiencing severe financial stress who are at risk of default — which is a category you are in before anything has gone wrong. Most options narrow considerably after a missed payment.
What mortgage relief options exist in Canada?
FCAC groups them as: renegotiating your current mortgage (converting variable to fixed, blend-to-term, blend-and-extend); leveraging mortgage features (prepaying and re-borrowing, skip a payment, HELOC, credit insurance claim); other relief measures (payment deferral, extended deferrals, extension of amortization, special payment arrangements, capitalization, interest-only payments); and selling your home under a sale by borrower plan.
Is a payment deferral free?
No. Interest continues to accrue during a deferral and the balance grows. FCAC states plainly that relief measures “may end up increasing the total cost owing over the total length of your mortgage.”
Should I extend my amortization to lower the payment?
That is a decision for you and a mortgage professional, not for a realtor. What can be said is FCAC’s own caution: “Think twice before extending your amortization to lower your payments. The interest costs that you will need to pay will be higher.”
Is the Canadian Mortgage Charter legally binding?
No. It sets expectations for how federally regulated financial institutions should assist Canadians in financial difficulty. The enforceable instrument is FCAC’s Guideline on Existing Consumer Mortgage Loans in Exceptional Circumstances, issued 5 July 2023, which FCAC monitors for compliance.
Who administers insolvency in Canada?
A Licensed Insolvency Trustee. They are the only professionals authorised to administer insolvency proceedings in Canada. If insolvency is genuinely on the table, that is who to speak to rather than a debt settlement company.
How common is this?
CMHC reports the Toronto 90-plus-day mortgage delinquency rate rose from 0.20 per cent to 0.29 per cent year over year. That is a real increase and it is still fewer than three mortgages in a thousand. Both things are true.
Related reading
- Renewing a mortgage in 2026: what the payment increase actually looks like
- Switching lenders at renewal: where the stress test applies
- Rent versus buy in Etobicoke: the arithmetic
Sources
Every figure on this page traces to one of these, and each was read on 30 August 2026. Primary sources only — statute, regulation, and the government or agency that administers the rule. Where I could not verify something from a primary source, the page says so instead of guessing.
- Mortgage relief options. Financial Consumer Agency of Canada. The federal government’s own list of relief measures and its cautions about each. Accessed 30 August 2026.
- Guideline on Existing Consumer Mortgage Loans in Exceptional Circumstances. Financial Consumer Agency of Canada, issued 5 July 2023. Applies to federally regulated financial institutions dealing with consumers at risk. Accessed 30 August 2026.
- Canadian Mortgage Charter. Financial Consumer Agency of Canada. Sets out the Charter’s commitments and confirms it states expectations rather than binding law. Accessed 30 August 2026.
- Renewal wave peaks but still dominates the mortgage market. Canada Mortgage and Housing Corporation, 12 May 2026. Toronto 90-plus-day delinquency rate rose from 0.20 per cent to 0.29 per cent year over year. Accessed 30 August 2026.
- Residential Mortgage Industry Report. Canada Mortgage and Housing Corporation, Spring 2026 edition. National 90-plus-day delinquency rate 0.24 per cent in Q4 2025. Accessed 30 August 2026.
- Financial Stability Report 2026 — Households. Bank of Canada, 28 May 2026. The remaining five-year fixed-payment pandemic cohort, about 12 per cent of outstanding mortgages, will see payments rise about 15 per cent on average. Accessed 30 August 2026.
About the author — Jatin Dua, Etobicoke real estate agent
I’m the Broker of Record at RE/MAX Quantum Realty, 799 The Queensway in Etobicoke. I write these pages the same way I work a file: read the primary source, quote it, date it, and say plainly where the source is silent or where two sources disagree. If a figure on this page has no citation beside it, that is a mistake and I want to hear about it.
I work with buyers, sellers, renters and investors across Etobicoke, Mimico, Humber Bay Shores, New Toronto, Long Branch, Alderwood and Stonegate–Queensway. connect@jatindua.com or 437-987-1925.