Will a Consumer Proposal Affect My Mortgage Renewal

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 4 Pillars Halifax, 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.

Debt Relief SpecialistThis article was written by David Moffatt. A Senior Debt Relief Specialist with 4 Pillars Halifax. 4 Pillars has assisted in creating plans that have helped save Canadians over $1 Billion dollars of consumer and tax debt since 2002. 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% with less than 3% of our clients ever getting into deep financial difficulties again.

We are proud members of the Canadian Debtors Association. We work for you, not your creditors.

If you are struggling with debt please reach out. It hurts to continue to suffer financially. 4 Pillars Halifax services Halifax, Dartmouth, Bedford, Sackville and the entirety of HRM.