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Can My Mortgage Renewal be Denied?

Can My Mortgage Renewal be Denied?

Can My Mortgage Renewal be Denied BC

Don’t let the stress of a mortgage renewal keep you up at night

The first half (or so) of your mortgage term is generally an exciting time. You’re riding off the high of being a first time home buyer and reveling the fact that you’re getting closer to having the property paid-off with each passing month. But as the years march closer to the end of the term, uncertainty sets in. Your mortgage renewal period is almost here.

In theory, a mortgage renewal should be straight forward. A homeowner would stay with their current lender for another term, and if in good standing, may enjoy the opportunity to negotiate a better interest rate. However, others may have had a few financial hiccups along the way. Some are ultimately inconsequential and negligible, others could be of more significance, and in some scenarios these hiccups could give original lenders a reason to pause and reconsider the risk of a given homeowner. If you land anywhere within this spectrum, you’re wondering; can my mortgage renewal be denied? Yes, it can be. However, there’s no need to toss and turn and lay awake at night stressing out about it. As it turns out, there is a VERY effective way to manage this risk. Below is a very simple and practical breakdown of what you need to know, and how to proceed.

Simple Answer About Why Mortgage Renewals Can Be Denied in BC and What You Need to Do to Avoid It


Why Your Mortgage Renewal Could be Denied

There are a number of things that could increase the risk of having your mortgage renewal denied in British Columbia. These include the following:

– Your credit score dropped over the term.

– Your household income has become significantly unstable over the term.

– The primary income earner in your household has switched careers over the term.

– A significant increase in your loan-to-value ratio (LTV). The LTV compares your mortgage amount to the value of the property. 

– You have missed or made late mortgage payments over the term.

– You have faced legal challenges (civil or criminal lawsuits) over the term that make you an uncertain investment to your lender.

– Unfavorable real estate market trends in BC.

Does any of the above apply to you? Even if you don’t identify with any of these situations, you may be stressed about whether or not your mortgage renewal will be denied. Whatever the case may be you can find peace of mind by taking the next step.

No Fear, Your Mortgage Renewal Broker is Here

Some homeowners actually wait until after their initial lender has denied renewal before reaching out to a mortgage broker. Don’t be one of them! By connecting to a mortgage broker BEFORE the end of your term, you gain an ally who will alleviate the workload, negotiations, and more-then-likely get your renewal approved. They may even get you a better interest rate than what you have been paying all along.

Longstanding mortgage brokers in BC work with a variety of the province’s lenders. This grows and levels your playing field and presents options that did not exist with your current bank or other institution. Your broker will closely examine options and negotiate with other lenders, including alternative or private lenders to get your renewal approved, and with terms that you’re happy with. All that you need to do is reach out to BC’s mortgage renewal expert Rene Carloni, and enjoy the good night’s rest to come.


Stressed About a Mortgage Renewal in BC?

Don’t Be!

CALL: 250.493.9111

EMAIL: hello@carlonimortgages.com