When you file for personal bankruptcy, your credit rating takes a significant blow. However, that does not mean there is no chance to repair it. If you have a mortgage payment at the time you file for bankruptcy, you may wonder what will happen when it comes time for your mortgage renewal.

Mortgage Renewal After Bankruptcy

Because your mortgage is a secured investment, Bankruptcy will generally not affect your monthly payments. In fact, bankruptcy may relieve you of some additional commitments, providing you with the opportunity to make consistent mortgage payments and the ability to begin rebuilding your credit. When it comes to mortgage renewal, banks and private mortgage lenders often do not pull your credit score again, and they even offer options for automatic renewal. If you have been able to keep on top of your payments, mortgage renewal following bankruptcy should not be a problem.

Mortgage Refinancing After Bankruptcy

Unfortunately, bankruptcy will likely affect your ability to refinance your mortgage. If you were planning to shop around for a different mortgage provider and better interest rates, that option is almost obsolete following a bankruptcy discharge. The requirements for refinancing your mortgage involve qualifying under the government issued stress test rules. With the black mark of bankruptcy on your credit rating, your chances of qualifying are nearly impossible.

Refinancing With a Private Mortgage Lender

However, if refinancing through the banks is out of the question, there may be another option. Private mortgage lenders do not operate with the same restrictions, meaning you may be able to refinance your mortgage with them, even after filing for bankruptcy. Private mortgage lenders often specialize in providing financing options to individuals with poor credit ratings such as first-time home buyers and individuals that are new to Canada. If you have taken the opportunity to make consistent payments leading up to your mortgage refinancing, your chances of approval with a private mortgage investment corporation will increase.

If you file for personal bankruptcy, you can still renew through your current mortgage provider or choose to refinance through a private mortgage lender. The important thing is to focus on rebuilding your credit through consistent mortgage payments and keeping up with all other monthly bills.


Whether you’re looking to borrow or invest, Alta West Capital can help. We offer a number of lending solutions for first time buyers, individuals and families that are new to Canada, self-employed business owners, real estate investors and more. Alta West loans are fast and flexible to fit your needs. Visit our website to apply online or contact us directly. Call (403) 254-9075 or email info@awcapital.ca.