Will a consumer proposal affect my mortgage renewal?

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Renewing your mortgage with a consumer proposal isn’t as scary as it seems. Most people in this situation renew easily as banks prefer it over foreclosure. Your credit score might dip, affecting interest rates, but paying on time and good money management can help. Reach out via phone, text, or live chat if you have any questions. Not all trustees can be trusted.

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Consumer Proposal Mortgage Renewal Question

Will a consumer proposal affect my mortgage renewal? I’m wondering if having a consumer proposal will affect my chances of renewing my mortgage.

From: Anonymous Question
Location: Abbotsford, British Columbia (BC)
Category: consumer proposal

Consumer Proposal Mortgage Renewal Answer

If you’re worried about renewing your mortgage while dealing with a consumer proposal, take a deep breath. It’s not as daunting as it seems! Most folks in your shoes have renewed without a hitch. Banks usually want to avoid the hassle of foreclosure, so they’re often keen to renew. That said, your credit score might take a hit because of the proposal, which can affect the interest rates you’re offered. But don’t fret! Keeping up with your payments and managing your money responsibly after the proposal can boost your chances.

From: Insider Scott

Office of the Superintendent of Bankruptcy (OSB) Answer

A consumer proposal can affect your mortgage renewal. Lenders typically assess your creditworthiness when you apply for a renewal, and having an active consumer proposal may negatively impact your credit score. According to the Bankruptcy and Insolvency Act, particularly sections related to credit reporting, a consumer proposal is noted on your credit report for up to three years after completion, affecting your ability to secure favorable terms on a mortgage renewal. Additionally, lenders may view you as a higher risk during the renewal process, potentially leading to less favorable conditions or outright denial.

From: OSB Helper

Related Questions to Consumer Proposal Affecting Mortgage Renewal

Here are the top 5 most frequently asked questions related to the impact of a consumer proposal on mortgage renewal, based on current trends and concerns:

1. Will a consumer proposal affect my mortgage renewal?

• Generally, a consumer proposal does not impact mortgage renewal, but interest rates might be slightly higher in some cases[1][3][5].

2. Can I renew my mortgage with my current lender while in a consumer proposal?

• Yes, renewing with your current lender is usually straightforward and automated, though interest rate negotiation may be limited[1][3][5].

3. Will a consumer proposal impact my mortgage interest rates?

• In most cases, the interest rates offered will be typical of the product, but they might be slightly higher, especially if you need to switch to a ‘B’ lender[1][3].

4. Can I switch to a new lender for my mortgage renewal after a consumer proposal?

• Yes, you can shop around for a new lender, but be prepared for potentially higher interest rates due to your credit history[3][5].

5. How does missing mortgage payments during a consumer proposal affect my mortgage renewal?

• Missing mortgage payments can raise concerns and may affect your ability to secure a mortgage renewal, so consistent and timely payments are crucial[3][5].

If you have a question about debt see our debt questions or ask your own debt related question.

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