It’s possible that you can be denied a renewal at the end of your mortgage period. It is sure a tough situation to maneuver – knowing that you will not have a home after the period expires. If you find yourself in this situation, there are alternatives that you can explore to get another mortgage renewal.
Why Was Your Mortgage Renewal Denied?
If you have never missed a mortgage payment, then your mortgage provider doesn’t have a valid reason not to approve another mortgage. If you stick with the same lending institution and don’t consider moving to another, then you might be paying higher monthly installments. Although the mortgage payments will be higher, your requalification and renewal are not going to be challenged, and the process is going to be smooth.
The most important reason that most people get a rejection of mortgage renewal request is missed payments. Sometimes, in an economic downturn, lenders are hesitant and may be unwilling to approve your renewal.
What Are Your Options?
You have a poor credit rating, it can be hard to get a loan. Honesty is your best approach; be open no matter how bad it looks and explain your situation and apply again with supporting documents, if you can.
If the rejection is due to missed or late mortgage payments but the property has great value, you could try finding a lender that will take up your offer. A lender’s primary aim is to seek out other factors to cushion their risk in offering you a mortgage, things like your employment income and the value of your home offset the risk. Remember that if you choose to go with another lender, you are mostly constrained to only 80% of the value of your home. This will require an appraisal. You can also bring a co-signer to help spread the risk, which will increase your chances of approval.
For more help with your mortgage renewal, book a consultation, call Northwood Mortgage™ today at (416) 969-8130 or contact us here.