Falling home equity, rising debt, and income changes are limiting refinancing options for many homeowners, especially in the Greater Toronto Area (GTA). About 4% nationally face challenges, potentially rising to 12% in the GTA if prices drop further. Mortgage arrears have increased, and lower home values have eroded equity. Key refinancing hurdles include reduced equity, increased consumer debt, income changes, lender qualification rules, and late planning. Early assessment of borrowing limits is crucial.