Renewal of Mortgage while under Consumer Proposal

My husband and I are thinking about doing a consumer proposal. If it is accepted and our current mortgage is up for renewal in 4 years, will we still be able to get a mortgage rate? Will it be higher than what we currently have? How does this affect us?

Posted from: Ontario

One Response to “Renewal of Mortgage while under Consumer Proposal”

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

What I find, in both a bankruptcy and a consumer proposal, is that as long as you simply renew your mortgage with the same institution you are currently using then typically there is no problem. The reason for this is that most renewals are simply a rubber stamp, partly due to your positive history of making regular payments over the previous 5 years, partly due to more equity in the property (assuming property values haven’t declined substantially), and partly because the mortgage company did their background check into your finances when you first qualified for the mortgage. Regardless of the reason, a renewal is much easier to obtain than a new mortgage. So as long as you stay with your same institution and don’t try to shop the mortgage around, then you shouldn’t have any difficulties.