Mortgage renewal.
April 1st, 2011 by Questions
i’m considering a consumer proposal for all my unsecured debts (credit cards) since interest and minimum payments are so high.
My question is, If a proposal is accepted, when It comes time to renew my home mortgage and bank notices that I’m making payments under a proposal with all my unsecured debts, will that affect the chance to renew with bank?
Will Bank refuse to renew because of It?
my mortgage is pretty much my priority and haven’t missed a single payment.
Thanks in advance for clarifying this.
Posted from: Ontario
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April 01, 2011 at 10:36 am, A licensed trustee said:
Under the law, a mortgage lender does not have the right to refuse to renew your mortgage simply because you have filed a proposal (or bankruptcy for that matter). So as long as you haven’t had payment problems or run up property tax arrears the bank should renew your morgtage. If you have had payment problems or other issues with the mortage then they may not want to renew, but it won’t be the proposal causing them to reconsider…
Your home should be a priority so make sure you ask these questions (again) with whichever trustee you see.