With banks tightening lending rules, stress tests changing, and renewals becoming tougher, the homeowners who prepare early will have the most options. Those who wait often find out too late that their bank has already said no.
This simple checklist will help you understand where you stand — and what to do next.
✅ Step 1 — Check Your Current Mortgage Renewal Date
☐ When does your mortgage renew?
☐ Is it in the next 6–18 months?
☐ Are you already getting letters from your bank?
Why this matters:
Renewal is no longer automatic. Many Canadians are discovering that banks:
won’t renew without re-qualifying
reduce the approved amount
suggest selling or downsizing
increase payments beyond affordability
👉 If renewal is coming up, plan now — not 60 days before.
✅ Step 2 — Calculate How Much Home Equity You Have
☐ Current estimated property value
☐ Total mortgages registered against the property
☐ Unpaid taxes or liens
Home Equity Formula:
Property value − total mortgage balances = your equity
Why this matters:
Private and alternative lenders approve based primarily on equity — not credit score. Even with bruised credit or income issues, equity gives you options.
✅ Step 3 — Review Your Credit (Don’t Guess)
☐ Pull your Equifax or TransUnion report
☐ Look for collections or late payments
☐ Check utilization on credit cards
Credit isn’t everything — but it affects:
bank qualification
renewal options
future refinancing back to “A” lenders
👉 If your credit is bruised, private lending can be a bridge until you rebuild.
✅ Step 4 — List All Monthly Debts and Payments
☐ Credit cards
☐ Lines of credit
☐ Personal loans
☐ CRA or property tax arrears
Ask yourself:
Are balances rising instead of shrinking?
Are minimum payments eating cash flow?
Are you robbing one card to pay another?
This is where home equity consolidation can reduce stress and total monthly payments.
✅ Step 5 — Decide What You Want Your Equity to Do
Home equity can be used to:
☐ consolidate high-interest debt
☐ lower monthly payments
☐ stop power of sale
☐ catch up on taxes or arrears
☐ fund renovations
☐ invest in a business
☐ help family with down payments
Equity is a financial tool — not just something on paper.
✅ Step 6 — Understand Your Realistic Lending Options in 2026
Your situation may fit one of three paths:
✔ bank / “A” lender refinance
✔ alternative lender
✔ private mortgage based on equity
In 2026, more homeowners will qualify for equity-based private mortgages because of:
rising debt levels
increasing payment shock at renewal
tougher stress tests
complex income (self-employed, commission, gig work)
Private lending is not last resort — it’s a strategy when timing matters.
✅ Step 7 — Create Your Exit Strategy Before You Borrow
Before taking any mortgage, ask:
☐ How long will I hold this loan?
☐ Am I consolidating debt and rebuilding credit?
☐ Will I sell, refinance, or renew later?
The right plan can move you:
Private → Alternative → Bank
instead of getting stuck.
🚨 Why This Checklist Matters Now
Banks are already:
increasing documentation requirements
tightening approvals
declining more renewals
scrutinizing debt ratios more heavily
Waiting gives you fewer choices.
Planning early gives you control.
🎯 Final Thought: Your Equity Is Your Safety Net
Your home equity can:
lower stress
reduce payments
protect your home
give breathing room
rebuild your financial foundation
The key is acting before the bank forces your hand.
Ready to Review Your Options?
At Lendworth, we help homeowners:
consolidate debt using home equity
get approved when banks say no
renew mortgages others decline
prevent power of sale
access fast private financing when needed
📞 905-597-1225