Mortgage renewal declined: what to do next

Ask whether the lender is refusing renewal, requesting information before deciding, or offering terms you have not yet accepted. Request the reason for the decision and ask whether missing or outdated documents can be reviewed. Do not assume that correcting a document will reverse the outcome.

FCAC says federally regulated lenders must notify you at least 21 days before the term ends if they will not renew. That notice does not itself create extra time after maturity. Check the date on the notice, the maturity date in your agreement and the person or department handling your file.

Ask for a current balance and the process for obtaining an official payout statement for the intended repayment date. Identify unpaid amounts, interest, fees and any other debts secured on the property. If a collateral charge is involved, a separate credit line may also need to be addressed.

Prepare a simple budget with reliable income, essential expenses and every debt payment. Gather current income documents, mortgage statements, property tax information and the non-renewal notice. Be open about missed payments or recent changes. An accurate picture is more useful than an application built around information that will not withstand review.

Ask your existing lender whether it will reconsider based on updated information or discuss a temporary arrangement. Get any agreed change in writing, including cost, end date and what must happen next. A conversation alone is not an extension.

A broker can assess whether another lender may fit your income, credit, property and available equity. Switching still requires approval and completion before the relevant deadline or another documented arrangement. A longer amortization or a different financing structure may alter the payment, but eligibility and total costs need individual review.

If non-standard or short-term financing is proposed, ask for all borrowing and broker fees, legal costs, payments and the amount due at the end. Ask what realistic event would allow you to repay or replace it. A short term is not a solution if its exit depends only on an uncertain future approval.

Continue required payments unless you have a written agreement changing them. Keep copies of calls, messages and documents. If you disagree with how the file was handled, ask about the lender's complaint process, but do not assume a complaint pauses the maturity date or collection activity.

Avoid adding new debt to try to make the application look stronger. Before paying an upfront fee or signing replacement financing, understand what is refundable, who is providing the funds and what conditions remain. Ask for a written explanation of anything you cannot follow.

If the deadline is close, the balance is disputed, or legal notices have arrived, speak with a Nova Scotia lawyer promptly. This guide does not determine your rights, the lender's remedies or any enforcement timeline.

If sustainable replacement financing is not available, discuss a planned sale and repayment with your lawyer and other advisers. Timing, sale proceeds and the amount owing matter; listing a home does not by itself settle the mortgage. Ask what happens if the sale closes after maturity.

The aim is not simply to get any approval. It is to find an arrangement you can carry and complete, or an orderly way to repay. Bring the notice, current statements and household budget to the conversation so decisions are based on your actual situation rather than pressure or hopeful assumptions.