In the "Old Days" borrowers with mortgages renewing could expect to look for the best interest rate on renewal, without having to requalify for their existing mortgage. So someone who had experienced credit problems had a job change, incurred additional debt really didn't have to worry about their mortgage renewal as long as they have paid their mortgage on time.

Already there has been a major change under B20 guidelines that require a refinancing or renewing borrower who switches institutions to qualify now under the new stress test guidelines. That puts borrowers at a competitive disadvantage already

Now IFSR9 is about to enter the picture.You can read about it here:IFSR9 explained

The problem is that lenders have to redesign their systems to be in compliance with the new International accounting standard and nobody knows how it will be applied. We have, however, seen early hints at what is coming and it may apply to everyone's total credit picture, not just their mortgage. Some lenders are already requesting up to date income documentation and a review of a borrowers credit on the renewal of their mortgage, even though they haven't missed one payment.

Here is a list of possible scenarios that may impact your renewal in the future:

1)Credit deterioration and a lower beacon score than what you had on approval.

2)Job changes-to a lower income, to part-time from full time, to self-employed from salaried, partner decides to stay at home instead of working resulting in a lower overall income from when the application was approved

3)Missed payments on your other non- mortgage debt

4)Added additional debt and payments from your original mortgage application

Just porting a mortgage already gets impacted by B20 guidelines in that a borrower who is just porting their mortgage faces full requalification at the new stress test rate.if their mortgage was previously approved under old guidelines and the ratios were tight then, they will not be approved to port.(This situation has already occurred to one of my clients)

So the net result from the eventual implementation of these guidelines could be borrowers having to search for an alternative lender at higher rates or even sell their home.

Common sense has long since departed from the mortgage world in an over regulated environment and the 'Demons' of Federal and International regulation are being borne every day.

So, we are stuck with what we have. What is your best defence? First of all, don't assume your mortgage will automatically renew. Most institutions will look at your renewal 4-6 months out. If you have any issue that falls within what I have outlined below, consult your mortgage professional at least 12 months before your renewal. If you have any issue that falls within the above guidelines and you are in the current term of your mortgage, consult your mortgage professional to ensure it will not impact you down the road.You can at least design a strategy to deal with your renewal or an issue mid term instead of getting a nasty surprise down the road. Let's not let the "Demons" win!