My business income dropped. Can I still renew or refinance? (Ontario)

Yes, you can generally still renew with your current lender in Ontario, because a renewal with the same lender generally needs no new application or income check. Switching lenders or refinancing is different: a new lender must approve you and may use different criteria, and a refinance means qualifying under the stress test on the income lenders count now (source: Financial Consumer Agency of Canada, checked October 2026). If no bank, credit union or monoline lender can help, there is a ladder: an alternative lender, then, for a short gap, a private bridge with a written plan back to a bank, all subject to lender approval.

Renewing with your current lender

A renewal starts a new term on the balance you still owe. A refinance changes the loan, usually by borrowing more or stretching the amortization (renewal vs refinance).

A federally regulated lender, such as a bank, must send a renewal statement at least 21 days before your term ends, or tell you it will not renew (source: Financial Consumer Agency of Canada, checked October 2026).

Lower income does not stop you negotiating. The Financial Consumer Agency of Canada says you can negotiate with your current lender and may qualify for a discounted rate lower than the one in your renewal letter (checked October 2026). While switching is harder, the renewal offer carries more weight.

If the payment itself is the strain, talk to your lender early and ask what relief the lender offers.

The Canadian Mortgage Charter sets out expectations for federally regulated lenders, including waiving fees for relief measures for a limited period. The Charter builds on an FCAC guideline for mortgages in exceptional circumstances, which lenders are expected to follow. The Charter is not legislation and grants no new rights (source: Financial Consumer Agency of Canada, checked October 2026).

Some owners choose a shorter term while income is down, so they can revisit once stronger returns are on file. Other owners prefer the certainty of a longer term.

Switching or refinancing

• Switching at renewal: OSFI does not expect the stress test to apply when an uninsured mortgage moves to another federally regulated lender with no larger amount or longer amortization (source: OSFI, checked October 2026). Under the Canadian Mortgage Charter, insured mortgages can also switch at renewal without re-qualifying (source: Financial Consumer Agency of Canada, checked October 2026). The new lender still has to approve you. The new lender will generally read your last two years of returns, often using the lower year when income has fallen. See why lenders want two years of NOAs.
• Refinancing: borrowing more or extending the amortization means qualifying under the stress test on today's counted income. A refinance done mid-term can also mean a prepayment penalty, usually the higher of three months' interest or the interest rate differential; your contract governs (source: Financial Consumer Agency of Canada, checked October 2026).

The ladder when the bank says no

1. Other banks, credit unions and monoline lenders. Policies differ, and some lenders and insurers have programs that look at the business more broadly. The income as lenders see it tool shows what lenders generally count.
2. An alternative lender. Alternative, or B, lenders can often consider bank statements or an uneven history, generally at a higher rate and often with a fee. Alternative lenders' terms are often one to two years; see what a B lender is.
3. A short private bridge. Where a gap is short and the way back to a bank is clear, the last step is a short private bridge from Stonefield Capital, our private-lending brand, with a written plan back to a bank. A private mortgage generally costs more again, and many are interest-only. You often pay a broker fee as well, disclosed before you commit. Our page on when a private mortgage is the right bridge covers when a private bridge fits.

A worked example of the cost of moving down the ladder

Illustrative, not a quote. You owe $420,000 at renewal.

• Every 1 percentage point of rate on $420,000 is about $4,200 of interest in the first year ($420,000 × 1%).
• If an alternative lender's rate were 1.5 percentage points above your bank's renewal offer (an illustrative difference), the first year would cost about $6,300 more in interest ($420,000 × 1.5%), before any fee.

The extra interest is the price of moving down the ladder. When your current lender will renew you on fair terms, staying is often the right answer while your returns recover.

What to do next

If you have a renewal offer from your bank in hand, start at Can your bank do better? and we will compare your offer with the lenders we work with. Or use our call-back form and we will go through the options, staying first.