Bankruptcy and remortgaging
I am 1.5 years into a 3 year mortgage. I lost my job several months ago, and am considering bankruptcy. My question is, if I declare bankruptcy now, or enter into a consumer proposal, or debt-repayment plan, how may each of these options impact me when my current mortgage is up for renewal?
In most cases, if your mortgage payments are current, you will not have a problem renewing your mortgage when your bankruptcy or proposal is finished. Since the mortgage holder has already lent you the money, there is no reason for them to want it back if the payments are current. However, there are no guarantees, and most mortgages have a standard “if you go bankrupt we can cancel your mortgage” clause, so if you have doubts you should discuss it with your mortgage holder.