Does debt settlement affect my mortgage renewal in 3 years?

By settling a debt for less than the contractually required balance you can be fairly certain that it will be reported to the various credit reporting agencies. As such it will have a negative effect on your credit rating. Most of the national banks and credit unions that are in the business of supplying residential mortgages pride themselves on the fact that if you have had no delinquencies on the payment of the mortgage, it will be automatically renewed on the expiration of the term of the mortgage. While the renewal is not guaranteed the exception would be a very unusual circumstance. There are a vast number of mortgage lenders that have appeared in the last few years with varying degrees of stability. If your mortgage holder is in this category and requires more liquidity, they may call your mortgage at the end of the term. This will necessitate you finding another mortgage company to fund the mortgage. If you have a questionable credit history you may have some difficulty in finding a mortgage company that will provide you with the funds at a fair interest rate.