What is Mortgage Renewal in Canada?
In Canada, mortgages have terms, usually 6 months to 10 years. A term is the amount of time your mortgage rate will be in effect for. When your mortgage term ends, you will either have to pay off your mortgage in full or renew it for another term. Renewal time presents an excellent opportunity to reassess what you need in a mortgage and to look for mortgage options that better fit your financing needs today.
What Happens if Your Mortgage Renewal is Denied?
If your mortgage renewal is denied, you may have to sell your home.
Every few years, you have the option to renew your mortgage with your current lender or shop around for a new one. If you decide to stay with your current lender, they will usually offer you a lower interest rate than what you’re currently paying.
However, if your financial situation has changed or your credit score has gone down, your lender may deny your renewal. If this happens, you’ll need to find a new lender and get a new mortgage.
If you can’t find a new lender, you may have to sell your home. This is because you’ll be unable to make your mortgage payments without a renewal.
If you are facing a denial of your mortgage renewal, it’s important to act quickly. You may be able to appeal the decision or find a new lender who will approve you.
Be sure to speak with a mortgage broker like Cindy Janisch to know all your options.
