Renewing with Your Current Lender: Typically straightforward, especially if payments are on time. Most lenders won’t require a new credit check.
Considerations:
Limited ability to negotiate interest rates.
Switching lenders or refinancing may only be possible after completing the proposal and rebuilding credit.
Possible, though rare, slightly higher interest rates.
Tips for Success:
Keep making timely mortgage payments.
Rebuild credit post-proposal.
Save for a larger down payment for future mortgage qualification.
Consult a broker with experience in post-proposal situations.
Timeframe: Lenders often expect 2 years of clean credit history post-proposal for the best rates.
Options:
Staying with your current lender is usually best.
Some alternative lenders may consider new mortgages sooner but with higher rates.
The focus should be on on-time payments and credit improvement; while a consumer proposal can affect your finances, it generally won’t hinder a renewal with your existing lender.
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