Your bank won’t renew your mortgage. What happens now?
A renewal refusal is uncommon, and it happens for a specific reason, not because a bank picked you at random. You still have a real window before your maturity date to arrange financing elsewhere or resolve the issue with your current lender. This page walks through why it happens, how much time you actually have, and exactly what to do first.
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Your bank refused to renew your mortgage. What happens now?
Your mortgage becomes due on the maturity date printed in your lender’s letter, with no new term arranged. That is a serious situation, not an emergency you have to solve alone. Real paths exist, including another prime lender, a B lender, a private lender as a short-term bridge, or a direct resolution with your current lender, and this page covers each one.
A refusal to renew is different from an offer you simply don’t like. Your lender has told you in writing that it will not extend a new term at maturity, on the terms it currently offers. That letter deserves your full attention, and it responds well to an organised plan started early.
Your original commitment letter and the refusal notice, not this page, set out what is contractually required if the maturity date arrives with no new arrangement in place. Read both closely, and bring them to a licensed broker before you assume anything about what happens automatically. Your documents govern this, this page routes you to the right next steps.
The clock that matters right now is the calendar on your maturity date, not a worst-case scenario. Between now and then you have common, workable paths: another prime lender, a B lender, a private lender used as a bridge, or a resolved conversation with your existing lender. The rest of this page walks through each one and where it fits.
The citable fact: A lender’s refusal to renew makes the mortgage due at maturity without a new term in place, and the borrower’s task is to arrange alternative financing or resolve the issue with the lender before that date arrives.
Why would a lender refuse to renew?
A lender’s decision not to renew is tied to a specific reason on that file: a documented history of missed mortgage payments, an unmet insurance condition, a change in property use, unresolved documentation, or a shift in the lender’s own risk appetite for that mortgage product. It is a decision about one account with one lender, not a verdict on your credit everywhere.
Refusal is not a single category. The reason behind the letter changes what your realistic next step looks like, so it is worth pinning down before you assume the worst case applies to you.
| Reason | What it involves | Your realistic next step |
|---|---|---|
| Missed or late mortgage payments | A documented arrears history on this specific mortgage | A B lender or private lender that weighs the property and your full story, alongside a direct conversation with your current lender |
| Lapsed property insurance | A required condition of the mortgage, unmet | Reinstate insurance immediately and provide proof; this can sometimes resolve directly with your current lender |
| Property condition or use changed | The property no longer matches what the lender originally financed, such as a conversion to a rental | A full new application with a lender comfortable financing the property’s current use |
| Lender exited that product or file type | A shift in the lender’s own risk appetite, unrelated to your payment record | Another prime lender may take the file cleanly, since the issue sits with the lender’s policy, not your record |
| Documentation or verification issue | Income, identity, or property documents that could not be verified to the lender’s standard | Provide complete, organised documentation to a new lender or broker from the outset |
The citable fact: A lender’s refusal to renew is a decision tied to a specific reason on the mortgage file, such as payment history, property condition, or the lender’s own product policy, not a single universal credit test applied to every borrower.
How much time do you actually have?
A federally regulated lender must send a renewal statement at least 21 days before your term matures, under a rule from the Financial Consumer Agency of Canada that applies to federally regulated lenders only. Provincially regulated credit unions and private lenders are not bound by that federal rule, so check your own mortgage documents for their notice terms. Either way, the maturity date on your documents is the real deadline, not the date the letter arrived.
The Financial Consumer Agency of Canada (FCAC) requires a federally regulated lender to send you a renewal statement at least 21 days before your term matures. That rule applies specifically to federally regulated lenders, meaning the big banks and other federally chartered institutions. It does not extend to provincially regulated credit unions or to private lenders, who set their own notice practices.
A refusal letter is not the same document as a standard renewal offer, and it can arrive earlier or later relative to that 21-day window depending on when the lender made its decision. Check the date on the letter against the maturity date on your original mortgage documents, and count from there.
Whatever notice you received, the date that actually governs your file is the maturity date printed on your mortgage documents. That is when your current term, and your current lender’s obligation to service the mortgage on its current terms, ends. Plan against that date, not against the day the letter showed up.
The citable fact: A federally regulated lender must send a renewal statement at least 21 days before your term matures, but that requirement does not apply to provincially regulated credit unions or private lenders, so the maturity date on your own mortgage documents is the deadline that governs your file regardless of lender type.
Can another prime lender take the file?
Yes, when the refusal was tied to something specific to your former lender rather than a broad credit or income problem. A new prime lender runs its own full application, a credit pull, income verification, and a property appraisal, regardless of what your existing bank decided. Insured mortgages require a minimum credit score of 600 from at least one borrower, and most prime lenders want 680 or higher for their best pricing.
A new prime lender does not see your refusal letter. It sees a fresh application. A refusal driven by something isolated to your existing lender, such as a policy change or an insurance lapse that has since been fixed, does not automatically appear on your credit file and does not automatically block a different prime lender.
If the refusal was driven by a documented history of missed mortgage payments, that history is visible to any lender who pulls your credit, and it becomes a bigger factor in a new prime application. That is where a B lender often becomes the more realistic next step, covered below. If you have already been declined by a B lender as well, our page on what happens when a B lender declines you covers what comes after that.
| Lender type | What it needs from your file | Where it fits after a refusal |
|---|---|---|
| Prime bank or trust company | A credit pull, income verification, and a property appraisal, the same as any new mortgage application | Best fit when the refusal traced to something specific to your old lender, not a broad credit or income problem |
| B lender (alternative or monoline) | More weight on the property and your full story, with flexibility on income documentation and past credit issues | Fits when there is a documented payment issue or income complexity a prime lender will not work around |
| Private lender | Primarily the property’s equity and a clear exit plan, with less emphasis on credit or income | Fits as a short-term bridge when time is short or when neither a prime nor B lender can close before your maturity date |
The citable fact: A new prime lender evaluates a fresh application on its own merits, so a renewal refusal rooted in an isolated issue with your former lender does not necessarily block approval elsewhere, while a documented history of missed payments carries forward to any lender who pulls your credit.
What does a B lender need to see?
A B lender wants a clear, honest explanation of why your bank declined to renew, current proof of income, and enough equity in the property to support the loan. B lenders are built around explainable situations such as self-employment income, a documented payment gap, or a temporary credit issue, evaluated case by case rather than declined outright. Any lender or broker fee on that file must be disclosed to you in writing before you sign.
The property’s equity carries more weight with a B lender than it does with a prime bank, because the B lender is pricing around the story behind your file, not just a credit score.
- A written explanation of the renewal refusal, ideally sourced from your existing lender
- Recent proof of income: pay stubs, a Notice of Assessment, or business financials if you are self-employed
- Your current mortgage statement, showing balance and payment history
- Proof of current property insurance
- Documentation on how any credit issue was, or is being, resolved
Below the credit range prime lenders want, alternative and B lenders remain available, with any lender or broker fee disclosed to you in writing before you sign, under Ontario’s Mortgage Brokerages, Lenders and Administrators Act (MBLAA). In Alberta, mortgage professionals are licensed by RECA.
The citable fact: A B lender’s decision rests on the property’s equity and a documented explanation of what caused the renewal refusal, and any lender or broker fee on that file must be disclosed to you in writing before you sign.
When does private lending become the answer?
Private lending fits as a short-term bridge, used when the maturity date is close, when a B lender cannot close in time, or when the story behind the refusal needs more time to resolve before a bank or B lender will take the file. It is priced against the property’s equity, not your credit score or income documentation, and it is meant to be temporary rather than a permanent replacement for bank financing.
Private lenders lend primarily against a property’s equity, with less emphasis on income proof or credit history, and can often move faster than a bank or B lender. Our dedicated pages on private mortgage lending in Ontario and private mortgage lending in Alberta cover fee structure and pricing in full, so this page will not repeat those figures here.
A private mortgage is designed as a bridge, not a permanent home. The plan from day one should include how and when you exit to a lower-cost lender, which our page on exiting a private mortgage to a conventional lender walks through step by step.
The citable fact: Private lending is priced against the property’s equity rather than your credit or income, which makes it a workable short-term bridge after a renewal refusal, provided there is a clear plan to exit to a lower-cost lender.
What should you do in the first week?
In the first week, read the refusal letter and your mortgage documents in full, confirm your exact maturity date, pull your own credit report, gather income and property documents, and reach a licensed broker who can present your file to several lenders at once. Acting in week one preserves the most options; waiting narrows them.
- Read the refusal letter and your original mortgage commitment in full, and note the exact maturity date.
- Pull your own credit report, so you know what any new lender will see before they see it.
- Call your current lender’s renewal or retention team and ask directly why you were declined and whether a review or workout option exists.
- Gather income documents: recent pay stubs, or if you are self-employed, about two years of filed tax returns and your Notice of Assessment.
- Gather property documents: your current mortgage statement, proof of property insurance, and a recent property tax bill.
- Contact a licensed mortgage broker who can present your file to prime, B, and private lenders at once, rather than approaching them one at a time.
- Set a personal deadline well before your maturity date, not on it, to have a signed alternative in hand.
If you want a structured, step-by-step framework beyond this specific situation, the Renewal Negotiation Playbook covers preparing for and negotiating a mortgage renewal from start to finish.
The citable fact: The first week after a renewal refusal is best spent gathering documents and reaching a broker rather than approaching lenders one at a time, since a broker can present a single file to several lenders simultaneously.
What makes this harder than it needs to be?
Waiting, applying to lenders one at a time instead of through a broker, and leaving property insurance or missed payments unresolved all narrow your options as the maturity date gets closer. Coordinated rate shopping protects your credit file; uncoordinated shopping does not. Starting early is the single factor within your control that changes the outcome most.
Multiple mortgage inquiries made for the same purpose within a set window, ranging from 14 to 45 days depending on the credit scoring model, are generally counted as a single inquiry rather than several. That protection applies to a coordinated mortgage search; it does not apply to credit card applications. A broker submitting your file to several lenders at once manages this coordination for you.
An unresolved insurance lapse or ongoing missed payments continue to work against you every day you shop, since they are the exact issues a new lender will ask about. Leaving too little runway before the maturity date also forces you toward whichever lender can close fastest, rather than whichever lender fits your file best.
The citable fact: Uncoordinated lender-by-lender applications, unresolved insurance or payment issues, and a late start before the maturity date are the factors within a borrower’s control that make a renewal refusal harder to resolve than it needs to be.
How do you get back to a bank afterwards?
Once payments are current, insurance is in place, and you have a documented explanation for what happened, a prime bank reassesses a new application on that current picture, not the old refusal letter. A B lender or private mortgage used as a bridge, paired with a clean payment record over time, rebuilds the file a bank will look at again. Each lender applies its own criteria, so a broker reviewing your specific file is the fastest way to know where you stand.
If a private or B lender bridges you through this renewal, the path back to a prime bank runs through the same things any application runs through: a documented payment history on the new mortgage, current income, and reasonable equity. Our dedicated page on qualifying for a bank after a private mortgage covers what a prime lender looks for and how that file needs to season before a bank will take it.
If your original credit or income issue also involved a consumer proposal or bankruptcy, that timeline is governed by separate, longer credit reporting periods rather than the general steps described here, so treat that as its own conversation with a broker.
The citable fact: Returning to a prime bank after a renewal refusal depends on a documented track record on the replacement mortgage, current income, and sufficient equity, evaluated by the new lender on its own criteria rather than on the original refusal.
What else should you ask if your bank won’t renew?
These three questions come up alongside this one most often.
- Can you renew your mortgage if your credit or income got worse?
- What happens when a B lender declines you?
- Can you qualify for a bank after a private mortgage?
The full set lives on the Ask a Broker hub.
Frequently asked questions
Why would a bank refuse to renew a mortgage?
A bank’s decision not to renew is tied to a specific reason on that file, such as a documented history of missed payments, an unresolved property insurance issue, or a change in the lender’s own risk appetite for that mortgage type. It is a decision about your account with that lender, not a verdict on your credit everywhere.
How much notice does a lender have to give before my mortgage matures?
A federally regulated lender must send a renewal statement at least 21 days before your term ends, under a rule from the Financial Consumer Agency of Canada. That specific rule applies to federally regulated lenders only, so provincially regulated credit unions and private lenders are not bound by it, and you should check your own mortgage documents for their notice terms.
What happens to my mortgage on the maturity date if I have not arranged anything?
Your original commitment letter and the refusal notice set out what is contractually required if the maturity date arrives with no new arrangement in place. Read both closely and bring them to a licensed broker well before that date, rather than assuming a default outcome.
Can I still get approved by a different bank after a renewal refusal?
Yes, a new prime lender runs its own full application, including a credit pull, income verification, and a property appraisal, rather than relying on your former lender’s decision. This works best when the refusal was tied to something specific to your old lender rather than a documented payment history that would show up on a fresh credit check.
What credit score do I need if I have to apply to a new lender?
Insured mortgages require a minimum credit score of 600 from at least one borrower, and most prime lenders want 680 or higher for their best pricing. Below that range, alternative and private lenders remain available, with any lender or broker fee disclosed to you in writing before you sign.
What documents does a B lender ask for after a renewal refusal?
A B lender asks for a written explanation of the refusal, recent proof of income, your current mortgage statement, proof of property insurance, and documentation on how any credit issue is being resolved. The property’s equity plays a larger role in that lender’s decision than it does with a prime bank.
Is a private mortgage a long-term solution after a renewal refusal?
No. A private mortgage is priced against the property’s equity and is meant as a short-term bridge, not a permanent replacement for bank financing. The plan should include a clear route to exit into a lower-cost lender once the underlying issue is resolved.
Will applying to several lenders at once hurt my credit score?
Multiple mortgage inquiries made for the same purpose within a set window, ranging from 14 to 45 days depending on the credit scoring model, are generally counted as a single inquiry rather than several, and this does not apply to credit card applications. A broker who presents your file to several lenders at once manages this coordination for you.
How do I get back to a prime bank after using a B lender or private lender?
A prime bank looks at your new application on its own criteria: a documented payment history on your current mortgage, current income, and reasonable equity. See our page on qualifying for a bank after a private mortgage for what a prime lender wants to see before it will take the file.
Does this work the same way in Ontario and Alberta?
The practical steps after a renewal refusal do not change by province. What differs is the regulator, FSRA in Ontario and RECA in Alberta, and the written fee disclosure rule confirmed under Ontario’s Mortgage Brokerages, Lenders and Administrators Act; Alberta mortgage professionals are licensed by RECA.
Is the chat on this page an actual person?
Yes. Chat on pekoe.ca connects you to a licensed member of the Pekoe team during business hours, not an AI persona. Outside business hours, a licensed broker replies directly to your question.
Should I keep making mortgage payments while I sort this out?
Yes. Continuing to make your mortgage payments on time, and keeping your property insurance active, keeps your file as strong as possible while you arrange alternative financing. Missed payments during this window make every option, from a B lender to a return to a prime bank, harder to secure.
Will switching lenders after a refusal cost more than a normal renewal?
It depends on which type of lender takes the file: a new prime lender may involve appraisal, discharge, or registration fees, while a B or private lender adds a lender or broker fee disclosed to you in writing before you sign. No specific rate or fee figure is quoted here since pricing depends on your file and current market conditions, so check pekoe.ca/rates or speak with a broker.
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Want a structured plan instead of a single conversation? The Renewal Negotiation Playbook walks through preparing for and negotiating a mortgage renewal step by step, including what to do when the first answer is no.