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What happens if bank won`t renew my current mortgage while in Consumer Proposal?

I keep reading that most lenders will renew a mortgage while in consumer proposal if up to date. Here`s my question…. what if they don`t??? What happens if a lender doesn`t renew? Do they give you time to sell the house? Do they foreclose? It`s very stressful worrying if they will renew or not. I am up to date, but I have about 7 months before my renewal comes up. Should I try to refinance with another lender first?

Posted from: Ontario

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One Response to “What happens if bank won`t renew my current mortgage while in Consumer Proposal?”

A licensed trustee said...

As long as you have not missed a bunch of mortgage payments when you go to renew (and that means your mortgage has to be up to date at the time you renew) then you should not have any problems renewing your mortgage.

I doubt you’ll be able to arrange for a new mortgage while you are in your proposal – at not at reasonable interest rates.

Talk to the mortgage company early – I am sure they’ll work with you.