Just wanted to share this part of my story. I filed a consumer proposal in 2009. I asked the trustee what would happen about my mortgage renewal in July of 2011, and he quite correctly told me that mortgages are almost always renewed as per usual, as long as the payments are up to date.
This was comforting until I learned that my mortgage company, GMAC, was phasing out its business in Canada, and had decided not to offer renewals to ANYone (not just those whose credit ratings had declined). In a later twist, I found out that "selected" GMAC mortgages in Canada were "being renewed" by GMAC's Canadian holding, Resmor Trust. However, although GMAC recently sent me a letter inviting me to talk to Resmor about my renewal, Resmor informed me that all GMAC applicants had to re-qualify according to Resmor's "A" mortgage lending guidelines. Thus, I would not qualify for a mortgage with them. That left me out in the cold, and quite panicked.
My trustee was very reassuring, and told me that many of our local lenders had recently becomes educated about consumer proposals, and were now aware that they were not the same as bankruptcies. He referred me to three in our community - two were credit unions, and one was CIBC. I went to a meeting with one credit union, and they were very welcoming and sat down and looked at my numbers. My trustee was vouching for me that was was paying my proposal payments regularly, and they took that into account, plus the fact that my other data (income, house value, etc.) fell within their guidelines. It probably also helped that my Equifax Beacon score is now 628 - not great, but pretty good for a person in a proposal (I've had two secured credit cards for almost a year). The credit union offered me a five-year closed mortgage at the posted rate. They are not requiring me to roll the proposal amount into the mortgage financing (there's a TD-Financial mortgage product that does this, so I wondered if it would be required).
I am delighted! My two years of worrying about this are over.
I am posting this in case anyone else is in the same worrisome situation. We've been hearing for two years that it can be impossible to get new mortgage funding during a proposal. This is obviously no longer the case. I saw a press release recently that Equity Financial Trust in Toronto will be offering similar deals - although at a slightly increased interest rate.
Many individuals in consumer proposals need mortgage funding and are good potential customers. The mortgage biz in Canada is waking up to this. If you are in a similar position to me, don't take a raw deal - shop your business around until you get a fair deal. There are decent options out there now.