A mortgage renewal is supposed to be routine, but for some homeowners it is not. Income may have changed, a credit event may have happened, or the lender may simply have tightened its policies since you first qualified. If your mortgage renewal has been declined, or is offered on terms you cannot work with, you still have options, and time is the main thing that limits them.
Why a renewal can become a problem
- Income changes: a new job, self-employment, reduced hours or retirement
- Credit changes: higher balances, missed payments or a recent credit event
- Property changes: a lower valuation or a property type your lender no longer favours
- Policy changes: the lender has tightened its criteria or the mortgage is switching to a new product
- Payment history: arrears or late payments during the term
Start earlier than feels necessary
Most lenders send a renewal offer months before maturity. That window is your best chance to explore alternatives without pressure. Waiting until the last few weeks removes options and can push you into signing a renewal you would not otherwise accept, or into a rushed and more expensive solution.
Your options when a renewal is declined or unsuitable
- Ask your current lender what would change the answer. Sometimes a missing document or a short explanation resolves it.
- Compare other bank and credit union offers. A different lender may view the file differently.
- Consider a B lender or alternative lender if the file sits just outside bank guidelines.
- Use a private mortgage as a bridge when conventional options are closed and you need time to repair credit, document income or sell.
How a private mortgage fits a renewal
A private lender pays out your existing mortgage and replaces it with a short-term loan based on your property and equity. The rate and fees are higher than a bank renewal, so the value is in buying time with a defined exit: a return to bank financing, or a sale. The Private Mortgage Payment Calculator shows the estimated payment and the total mortgage amount including fees.
What to prepare
Bring your renewal letter or decline notice, your latest mortgage statement, property tax and insurance details, and a short explanation of what has changed. With those, we can usually tell you quickly whether a conventional alternative exists or whether private financing is the realistic route.
See also Declined by a Bank or A Lender and Mortgage Arrears and Financial Pressure.
Frequently asked questions
How early should I start planning my renewal?+
As early as you can. Lenders commonly send renewal offers several months before maturity, and that window gives you the most choice. If you already suspect a problem, start planning even before the offer arrives.
Can my lender refuse to renew my mortgage?+
Lenders generally have discretion, and a renewal is not always guaranteed, especially if your circumstances or their policies have changed. That is why it is worth confirming your renewal status early instead of assuming it is automatic.
Do I have to renew with my current lender?+
No. You can usually move your mortgage to another lender at maturity, although the new lender will assess your file under its own rules. That is the point at which a decline can surface.
What if my renewal rate is much higher than I expected?+
Compare the offer with other lenders before signing. Sometimes a different lender or a broker can find better terms. If your options are limited, a short-term private mortgage is a possible bridge, but it costs more, so it should have an exit plan.
Can a private mortgage get me through a renewal?+
Yes, it can pay out your maturing mortgage and give you time to fix the issue that caused the decline. It is typically a one-year or shorter term, with a plan to refinance back to a bank or sell.
NOW Mortgage is a RECA-licensed brokerage operating under Dependable Mortgage Solutions Corp. Call 587-200-6727 or email lending@nowmtg.ca. Information on this page is general in nature and is not a commitment to lend. Financing is subject to lender approval, property assessment and final documentation. OAC.