You rarely need to re-qualify for your mortgage at time of renewal. In fact, in my 20+ years of banking, I never witnessed a renewal that wasn’t automatically offered.December 2020 Update
One month in to no pay and I can't say we're hurting. In fact, everything is ticking along quite nicely. The large gain in net worth this month was a split between adjusting the CV/termination amount of my wife's pension (up due to lower interest rates), good market gains, and debt repayment.
It sounds like I have a contract position for a few months lined up. I will bill it through our corp and not take income from it. We don't need the money right now.
The most pressing concern at the moment is our mortgage which comes up for renewal in Sept. If I don't have a FT job by then, which I would put at 50/50, then we would have to qualify on my wife's income which is not going to be enough given the size of the mortgage. Options are to 1 - sell non reg and TFSAs, load up the HELOC to pay down the mortgage enough to qualify on her alone (along with rental income), 2 - take whatever crap rate the bank gives us in our renewal papers, 3 - get a cosigner for a short 1 or 2 year term (her parents wouldn't hesitate), 4 - sell and downsize to something we can afford with little to no mortgage. Option 3 would be the easiest and lowest cost. Option 2 is a fallback plan that we could do for 1 or 2 yr term.
We currently have 2 leased vehicles. The leases on both finish this year (June and Oct). We for sure only need one vehicle as I have no job and my wife walks to work. I'm not sure what we'll do - buy out one of them and return the other, or maybe return both and buy a used vehicle.
My little web business looks like it will exit the year with sales of 50K (previous year was 16K). I could see revenue of 70K next year which would amount to 28-30K net income. I had looked at adding a new product/website together, but the insurance costs were ridiculous (like 5K/yr) for a small business.
What's on the plan for the next year? Not sure. We might kick around the idea of doing a 1yr contract in Qatar, Dubai, MAcao, etc where my wife can teach. She's always wanted to try something like that and the kids are a good age to experience it. I have been doing a few what if calculations if we did downsize our house to something mortgage free...1 mil in investable assets is within reach, our RESP is close to big enough to just grow with no contributions, child benefit payments are pretty healthy, and with rental income and some small business income...well. Might be a bit premature to talk like that, but it's moving in to the realm of possibility.
House - $1,080,000
DB Pension (wife) - $322,000
RRSPs - $479,408
Non-Reg - $9,300
Corporate Account/Value/Inventory: $68,000
House Maintenance Account: $6,490
Cash - $15,070
Miscellaneous assets - $16,000
Total Assets $2,042,933
Mortgage - $651,413
Credit cards - $2,266 (this is not a balance, but the amount due. We pay off every month, but a true snapshot must include this)
PLOC - $0
HELOC - $3,800
Total Liabilities $657,479
Net Worth: $1,385,454 (+$68K from last update)
were you planning on borrowing additional monies in Sept?