consumer proposal and mortgage
September 23rd, 2008 by Questions
We are a year into a consumer proposal and our mortgage which we have held for 4 years without any problem is up for renewal next June.
Will we have to stay with our current bank or will we be able to go to another bank to redo our mortgage? Our credit is bad right now because of the CP and we haven`t had the funds to get one of those pay in advance credit cards to build up our credit.
Will banks take one look at the consumer proposal and not want to touch us or will we have to stay with our existing bank and have a higher interest rate?
Thanks in advance.
Posted from: British Columbia
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September 24, 2008 at 9:14 am, Barton Goth - Goth & Company Inc. - Bankruptcy Trustees said:
It will likely be easier to renew with your existing bank. Now typically the bank wants to retain your mortgage and do so so they will likely offer a very competitive interest rate.
If you want to try to shop your mortgage around it will be more difficult due to the presence of the consumer proposal, but this will be balanced by the fact that your unsecured debt is largely taken car of. So will it be any more difficult to shop your mortgage around than it would have been in the absence of the proposal, likely not significantly.