Will a Consumer Proposal Affect My Mortgage Renewal

Will a Consumer Proposal Affect My Mortgage Renewal

If you are reading this then you are most definitely wondering ‘Will a consumer proposal affect my mortgage renewal?’.

You are not alone.

A consumer proposal typically does not impact a mortgage renewal. In every client instance, that our office has assisted with, we haven’t had a single client experience any issues in renewing their mortgage. In certain instances the rate the bank offers you might be slightly higher than ‘market’ rates, but even that is exceptionally rare.

It isn’t really in a bank’s best interest to NOT renew. They are very well aware that while in a consumer proposal your mortgage options are limited, especially if you have less than 20% equity in your property. The last thing the banks want is for you to default on your mortgage obligations and be forced into foreclosure where they may take a loss.


Debt can be a symptom of any number of problems and life circumstances. However, it is important to understand that YOU ARE NOT YOUR DEBT.

At Halifax Debt Freedom, we’d love to discuss how we can help you become debt free.

Does a consumer proposal impact my mortgage rate?

This is a slightly more complicating subject. In most instances, upon renewal, a consumer proposal will have no effect on the rates offered. They will simply be the rates typical of the product and increase/decrease with interest rates.

However, if you are looking to purchase a house and/or refinance your interest rates will typically be a bit higher until it is paid off and you have rebuilt your credit, as your mortgage product will typically be issued through a ‘B’ lender (lender who lends in riskier situations). While interest rates are higher here, they are not as high as private mortgages which usually range from 8-20% per year. B lenders are usually 1-2% higher than a traditional mortgage.

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Debt Relief Specialist

This article was written by David Moffatt, a Debt Relief Expert. He has helped assist in creating plans that have helped save Nova Scotia residents over $30 million dollars of consumer and tax debt since 2015. We believe that no consumer should have to struggle with the stress of overwhelming debt. Our debt restructuring strategies can help you cut your debt by up to 80%.

If you are struggling with debt please reach out. It hurts to continue to suffer financially. Halifax Debt Freedom services Halifax, Dartmouth, BedfordSackville the entirety of HRM, and all of Nova Scotia.

We’d love to discuss how we can help you become debt free

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