Mortgage Renewal is Denied

A mortgage non-renewal is when a bank refuses to renew your mortgage at the end of your term. In other words, they no longer want you as a customer and require full reimbursement of their loan. Several factors cause the bank to refuse to renew the mortgage. For instance, if you have:

• had any delays on your mortgage;
• had 60 days notice;
• filed for bankruptcy or proposal during the term and they have a debt in your debt consolidation;
• had delays on your credit card or line, and the debt is now in collection;
• not provided proof of insurance on the building;
• added a private mortgage loan as a second mortgage without their authorization; and/or
• If the bank withdraws from the province and recalls all its loans.

Being denied for your mortgage renewal is always a stressful situation. If your credit rating is low, this will affect your ability to borrow and get a mortgage. This happens often and clients get turned down by multiple banks. What you really do not want to do when your bank refuses to renew your mortgage is go see all the banks you deal with one after the other! Every time you get turned down, your credit rating goes down and so on and so forth until your credit is too low for financing!