Match the plan to the actual obligation
Start with the full balance due at maturity, including any interest or fees added to principal. An interest-only payment generally does not reduce the principal. Confirm the timing and costs of the repayment source.
If the plan is refinancing
Discuss the future lender’s requirements with a qualified professional. Identify what must change, whether it is realistic within the term, and what evidence will demonstrate it. A hoped-for income increase or improved credit score is not a committed refinance.
If the plan is selling
Allow for sale costs, secured debts, expected net proceeds, and the possibility that timing or price differs from expectations. Do not build the plan around speculative appreciation.
What if the plan slips?
Ask early about options and costs. Renewal is discretionary and may come with different rates or fees. If repayment or payments become difficult, seek timely advice from the provider and an appropriate independent professional.
Further reading: FSRA’s consumer guide to private mortgages ↗. Provincial requirements differ.