Facing a mortgage renewal denial can feel overwhelming—but it’s not the end of the road. If your mortgage isn’t renewed, there are several proactive steps you can take to protect your home, maintain stability, and find a new path forward. In this guide, we’ll walk you through why mortgage renewals are declined, what happens if you don’t renew your mortgage, and what to do if your lender says no—with Canadian homeowners in mind.
✅ Quick Summary: What You Should Know
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Mortgage renewal is required at the end of every term (typically 1–5 years).
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Lenders may deny renewal due to credit issues, income changes, or home equity concerns.
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You still have options: B lenders, private financing, refinancing, and negotiating can help you stay in your home.
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LendToday.ca specializes in helping Canadians—even with bad credit, self-employment, or complex financial situations.
What Does Mortgage Renewal Mean in Canada?
When you sign a mortgage in Canada, it’s for a fixed term—not the full amortization period. Your term could be 1, 3, or 5 years (or more), and when that term ends, you need to renew your mortgage to continue making payments on your loan.
Most homeowners go through several renewals before their mortgage is fully paid off. During renewal, you can stick with your current lender, shop around for a better rate, or switch to a different lender altogether.
While mortgage renewal is typically a straightforward and common process for most Canadians, there are times when a mortgage isn’t renewed—leaving homeowners scrambling to find a new lender and secure financing before their term expires.
Why Would a Lender Refuse to Renew a Mortgage?
Canadian homeowners hear more often today that the mortgage won’t be renewed at the end of the term. There are so many reasons that a mortgage isn’t renewed by a lender, and it’s important to understand why and how it impacts you.
Here are some of the most common reasons:
1. Poor Credit History or Missed Payments
If you’ve recently missed payments or your credit score has dropped significantly, your lender may see you as high risk.
2. Low Home Equity
If your home has lost value, or your loan balance is too high relative to the property’s current market value, the lender may be unwilling to renew.
3. Unstable Income or Employment
Job changes, reduced hours, or switching to self-employment without stable proof of income can raise red flags.
4. Existing Debt Load
Lenders consider your total debt obligations. High balances on credit cards, lines of credit, or other loans can affect your debt service ratios and hurt your renewal chances.
5. Switching to a New Lender Without Required Documents
If you’re applying with a new lender and don’t provide income verification, appraisal, or ID documentation in time, they may decline the file.
What Happens If I Don’t Renew My Mortgage?
If you fail to renew your mortgage before the term expires:
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The loan matures, and your balance becomes payable in full.
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Your lender may demand immediate repayment, or charge higher default interest.
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Missed renewals can impact your credit score, especially if payments lapse.
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Lenders are required to send you a renewal statement at least 21 days before the term ends, giving you time to review your options.
Important to note: If you don’t act, some lenders will automatically renew your mortgage at posted rates—which are usually higher and less favourable than negotiated rates.
What to Do If Your Mortgage Isn’t Renewed
If your mortgage isn’t renewed with your current lender, then that’s not the end of the road.
Here are several strategies Canadian homeowners can use to move forward:
✅ 1. Work with a B Lender
B lenders—also known as alternative lenders—offer flexible mortgage solutions for borrowers who don’t meet the traditional requirements.
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Approve clients with bad credit, self-employment, or high debt ratios
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Focus more on your home equity than your credit score
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Provide short-term options (1–3 years) to help you rebuild and return to an A lender
📌 Key takeaway: B lenders help bridge the gap when big banks say no.
✅ 2. Negotiate With Your Existing Lender
Even if you received a renewal letter, you don’t have to accept the first offer.
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Ask for a better rate—especially if you’ve seen better offers elsewhere
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Share competitive quotes from other lenders or brokers
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Negotiate payment terms (e.g., amortization, prepayment privileges)
Pro tip: Always respond before the renewal deadline. If you don’t, you risk being locked into unfavourable terms automatically.
✅ 3. Refinance Your Mortgage
Refinancing replaces your current mortgage with a new one—possibly with better rates or terms.
You can:
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Access home equity to consolidate debt or cover other costs
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Extend the amortization to reduce monthly payments
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Change lenders if your current one isn’t offering fair terms
You’ll need to go through a full application again, including appraisal, credit review, and legal paperwork. But it can lead to substantial savings.
✅ 4. Explore Private Mortgage Financing
When all else fails, private mortgage lenders may step in.
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Focused entirely on property value and equity
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Ideal for short-term financing, debt consolidation, or avoiding foreclosure
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Faster approvals—often in 24 to 48 hours
Important to note: Rates are higher, but private loans can provide time to regroup and requalify for a better solution later.
What If You Can’t Qualify Anywhere?
If you’ve exhausted every option and still can’t qualify:
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Consider selling your home before the lender takes legal action.
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Speak with a licensed mortgage professional to evaluate your next best step.
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Avoid missed payments at all costs—they will harm your credit and reduce future options.
How LendToday.ca Can Help
At LendToday, we specialize in helping homeowners who:
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Have been denied by their bank
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Are facing non-renewals or foreclosure
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Have poor credit or low income
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Are self-employed or unable to prove income traditionally
We work with a network of B lenders, private lenders, and institutional lenders across Canada to find the best possible solution—even when other doors have closed.
Final Thoughts: Mortgage Isn’t Renewed
If your mortgage isn’t renewed, it is one of the most stressful situations a Canadian homeowner can face—especially in 2025, when thousands are experiencing renewal shock. As interest rates remain elevated compared to previous years, many borrowers are discovering that their monthly payments have jumped by 30% or more. Combine that with stricter lending criteria, reduced home equity, and job or income uncertainty, and it’s no surprise that more Canadians are being denied mortgage renewals than ever before.
But this doesn’t mean you’ve run out of options.
Whether your current lender has declined your renewal or you’ve realized the new terms are simply unaffordable, there are still powerful tools available—from B lenders and refinancing to private mortgage options. These alternatives are designed specifically for homeowners who are being squeezed by rising payments, poor credit, or unstable financial situations.
You’re not alone in this. And you don’t need to navigate it alone either.
At LendToday, we work with clients just like you—every single day. We understand how frustrating it is when your mortgage isn’t renewed and how overwhelming it can feel when your home is on the line. Our team specializes in crafting personalized solutions based on your home’s equity, your financial goals, and your timeline.
Take Action Before It’s Too Late
Don’t wait until the final days of your term to explore your options. The earlier you act, the more choices you’ll have.
Let the experts at LendToday help you protect your home and find the best path forward—even if your bank says no.
FAQs About Mortgage Renewal Denials in Canada
1. Why would a lender not renew my mortgage?
Your lender may deny your renewal due to bad credit, unstable income, or high debt levels. In some cases, declining home values or incomplete paperwork can also be a factor.
2. Can I stay in my home if my mortgage isn’t renewed?
Yes, but you must secure alternative financing quickly. If not, your current lender may demand repayment or initiate collection/legal action.
3. How do I find a B lender or private lender in Canada?
Work with a mortgage broker or specialist like LendToday, who has access to trusted B and private lenders nationwide.
4. Will my credit score be affected if I miss my mortgage renewal?
Yes. Missed mortgage payments are reported to Equifax and TransUnion and can lower your score significantly.
5. Can I refinance even if I was denied a renewal?
Yes—refinancing may still be an option through a different lender, especially B or private lenders who focus more on equity than credit.
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