Refinancing at renewal is harder than many Canadians expect

Second, consumer debt accumulated after purchase, such as credit card balances, narrows borrowing capacity by the time renewal arrives.

Third, income changes — parental leave, a move to self-employment, reduced hours, or retirement — can affect whether a borrower qualifies at all.

Read more: Here’s how homeowners are coping with mortgage renewals in a choppy economy

Fourth, switching lenders is not automatic: homeowners who need to increase their mortgage amount or change their amortization must still meet current lender qualification requirements.

Fifth, planning too late is itself a risk because income, debt levels, and home values can all shift well before renewal, understanding borrowing limits early is critical.