# Mtge renewal in Sept 2020...



## ghrh1977 (Jun 4, 2014)

Our mtge is coming up for renewal after being locked in for 5 years. During that time we suffered one issue after another: I lost my job, my wife was injured in a car accident & was laid off, we suffered a miscarriage. Anyways, we fell behind at one point & our file was trx to a lawyer where we had to scramble to find the cash to get our property tax and mtge up to date or suffer a power of sale.

Fast forward, things are much better now, all caught up.

We bought in 2010 for $180k and have built up approx another $180k in equity. Shortly after we renewed 5 yrs ago I filed a consumer proposal, which is offically paid off in Nov 2020, maybe even sooner.

My question is: will we be refused when it comes time for our renewal? Not sure if it makes a difference but our mtge is with Merix Financial.


----------



## Mortgage u/w (Feb 6, 2014)

As long as your mortgage is not in default at the time of renewal, you will be able to renew. 

Your only constraint right now is obtaining credit. Until your consumer proposal is not paid off, no one will extend you credit - except for maybe private lenders.


----------



## ghrh1977 (Jun 4, 2014)

Mortgage u/w said:


> As long as your mortgage is not in default at the time of renewal, you will be able to renew.
> 
> Your only constraint right now is obtaining credit. Until your consumer proposal is not paid off, no one will extend you credit - except for maybe private lenders.


When should I expect to receive my renewal notice?


----------



## Money172375 (Jun 29, 2018)

Can be anywhere from 30-180 days before maturity....depends on the lender.

A lender CAN in fact decline to offer a renewal...it’s built into most mortgage agreements. I’ve never seen it though if the mortgage is up to-date.


----------



## ghrh1977 (Jun 4, 2014)

Money172375 said:


> Can be anywhere from 30-180 days before maturity....depends on the lender.
> 
> A lender CAN in fact decline to offer a renewal...it’s built into most mortgage agreements. I’ve never seen it though if the mortgage is up to-date.


What happens if it they do decline it? Are we basically SOL...? :culpability:


----------



## Money172375 (Jun 29, 2018)

PS. Good on you for getting things turnaround. If you haven’t already done so and are able to.....start an emergency cash reserve....with whatever you can....$25, $100 a week...whatever.

It may not always be practical, but if you can get 6 months worth of mortgage payment stashed away, it’s a goal to strive for.


----------



## Money172375 (Jun 29, 2018)

ghrh1977 said:


> What happens if it they do decline it? Are we basically SOL...? :culpability:


You would need to find another lender and probably pay a much higher interest rate. It would then be up to you to figure out if you’d rather pay 10-12% interest for a year or two, or sell your house.


----------



## Mortgage u/w (Feb 6, 2014)

ghrh1977 said:


> When should I expect to receive my renewal notice?


Not knowing your current situation (_and not being an employee of Merix_), is not an answer anyone can provide. I suggest calling Merix to see when your renewal is due.

If they are not renewing your mortgage, the only reason would be that your mortgage is in default. If its not, you have nothing to worry about. If you are in default, then I would consider selling since clearly, you will have a very difficult time getting back on track while on consumer proposal. You did it once before and that caused you to file CP. You will need to get your finances in order before you consider home-ownership again. Get rid of your mortgage debt and every other expense that comes with it (taxes, maintenance, etc), pay off your consumer proposal and then start rebuilding your credit worthiness.

Of course, all this is an assumption on my part since I don't have the full story.


----------



## ghrh1977 (Jun 4, 2014)

Mortgage u/w said:


> Not knowing your current situation (_and not being an employee of Merix_), is not an answer anyone can provide. I suggest calling Merix to see when your renewal is due.
> 
> If they are not renewing your mortgage, the only reason would be that your mortgage is in default. If its not, you have nothing to worry about. If you are in default, then I would consider selling since clearly, you will have a very difficult time getting back on track while on consumer proposal. You did it once before and that caused you to file CP. You will need to get your finances in order before you consider home-ownership again. Get rid of your mortgage debt and every other expense that comes with it (taxes, maintenance, etc), pay off your consumer proposal and then start rebuilding your credit worthiness.
> 
> Of course, all this is an assumption on my part since I don't have the full story.


No, nothing is in default - we are paid up and current.


----------



## Mukhang pera (Feb 26, 2016)

I would say that if they didn't call the loan when you were in default, it's not likely they will effectively do the same thing by declining to renew when you are not in default.


----------

