If your mortgage is coming up for renewal soon, and you’ve already received your renewal offer, with the new mortgage rate and term, don’t act too quickly. An impulsive decision to sign the slip and return it merely for convenience can end up costing you over the long-term and it doesn’t necessarily mean you’re approved either. There is a chance your renewal can be denied. So before you sign it, consider that it might be time to find a new lender.
Have you already returned your renewal slip and got denied?
Have you already been denied? Here are a few scenarios meant to help you understand why this might have happened:
You decided to stay with your current lender. Although they don’t need to re-qualify you, they still need to assess your financial standing, credit score and employment status. If issues of concern arise, such as more debt, lowered credit score, or change/loss of employment, which show you may have difficulty continue to meet your mortgage loan requirements, you may be denied, even by your current lender.
You tried to switch to a new lender. Considering a new lender upon renewal is an ideal choice if you’ve been denied by your current lender. It’s also a good idea if you want to secure a better offer. Your mortgage broker can help you too. However, if you’re switching lenders due to concerns with your financial situation, then you should know that your denial rate would also be higher with a new lender. You will not only have to apply for renewal, but you’ll also have to submit an entirely new mortgage loan application. In this case, it’s probably best to remain with your current lender.
Denied? Here’s what’s next!
If your renewal was denied by a Canadian bank, simply find an experienced mortgage broker with experience in low credit mortgage loans, they’ll be able to guide you through the next steps.
Here are the steps you need to take, and your mortgage broker can help:
Speak to new lenders to see what options are available to you and what the requirements are
Speak to your current lender to see if they’re willing to renew your mortgage
If denied by both current and new lenders, ask your mortgage agent to review other available options with you
For bank mortgage renewal that were denied due to bad credit, speak to your broker they’ll have lenders who deal with bad credit mortgages too
If denied for a bad credit mortgage, speak to a private lender
If denied by the private lender, you may have to consider selling your home, but this is extremely rare in our experience
Our important advice to mortgage borrowers is to ensure you meet your mortgage payment requirements - pay monthly and on time, and ensure you keep your credit score and history in good standing. This will prevent any hardships you may face while renewing your mortgage for another term.
No matter what trouble you face, we have options for you.
When we say YES! We stand behind our promise.®