Is your mortgage renewal due and you are wondering whether your bank will agree to renew it due credit score/debt ratio worsening? Alternatively they may quote you exorbitantly high rates for renewal. Most banks do not accept renewing mortgages for borrowers with bad credit. In Canada, most mortgages are set to be repaid on a monthly basis. If you comply with these guidelines by paying the required monthly amount, it will take you not more than 30 years for you to pay off the mortgage according to the amortization schedule.
Renewing your mortgage can be challenging especially when you have not been able to make regular payments every month. These affect your credit score and in most cases, your bank may refuse to renew your mortgage. Banks in Canada have become more cautious, and they have put more emphasis on your repayment history as well your credit score.
What happens when your bank refuses to renew your mortgage? You don’t have to worry because you can use other alternatives to get your funding. You need to get connected to the right Mortgage broker who will professionally guide you and provide you with a list of alternatives to choose from.
If your bank or credit union (“A” Lender) denies you a mortgage renewal you can consider seeking help from other “B” Lenders. Under this category, mortgages are offered by alternative credit lenders that are willing to work with individuals with low credit score. To protect yourself its best advised to access these lenders through a mortgage broker who can cross shop terms and rates.
In situations where you credit score is too low, most of this lenders may also deny you a mortgage renewal. Therefore, you will then have another option of seeking help from a private lender. There are many private lenders in the Canadian mortgage market.
You should also bear in mind that you will be required to pay a slightly higher interest rate to the private lenders, but you will be able to acquire your preferred mortgage through another alternative means. Find out more about mortgage renewal alternatives by contacting PrestoMortgages across our many locations in Ontario Canada.