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How Many Times Can You Do A Consumer Proposal

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consumer proposal and mortgage renewal

Hello, I am wondering what happens when it comes time to renew my mortgage after I have filed a consumer proposal. Assuming my payment history is good, can my mortgage company charge me a higher rate or interest or refuse to renew my mortgage because they know I filed a proposal for the unsecured debts and now I have an R7 credit rating?

Posted from: Ontario
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One Response to “consumer proposal and mortgage renewal”

Barton Goth – Goth & Company Inc. -Trustee in Bankruptcy said...

Technically this could be possible. But practically I find that most mortgage renewals are simply a roll over. Meaning the mortgage company doesn’t go to the same efforts of qualifying you as they did in the begining. The logic employed is typically if you could qualify originally, had good payment history over the term of the mortgage, likely have more equity in the property, so lending is no where near as risky as it was the first time.

Lately the only time I have seen trouble is:
a) if you try to shop the mortgage to a new institution; or
b) if your mortgage is with a lender who doesn’t lend in Canada anymore (i.e. Wells Fargo, Exceed, Girbraultor etc.).