Mortgage Renewal During a Consumer Proposal: Key Points & Strategies

• Renewing with Your Current Lender: Typically straightforward, especially if payments are on time. Most lenders won’t require a new credit check.

• Considerations:

  • Limited ability to negotiate interest rates.

  • Switching lenders or refinancing may only be possible after completing the proposal and rebuilding credit.

  • Possible, though rare, slightly higher interest rates.

• Tips for Success:

  • Keep making timely mortgage payments.

  • Rebuild credit post-proposal.

  • Save for a larger down payment for future mortgage qualification.

  • Consult a broker with experience in post-proposal situations.

• Timeframe: Lenders often expect 2 years of clean credit history post-proposal for the best rates.

• Options:

  • Staying with your current lender is usually best.

  • Some alternative lenders may consider new mortgages sooner but with higher rates.

The focus should be on on-time payments and credit improvement; while a consumer proposal can affect your finances, it generally won’t hinder a renewal with your existing lender.