If your lender will not renew, the full balance is due on the maturity date. You need a new lender before then. Try another bank first, then a B-lender at 6.0-8.5% (2-3 weeks), then a 12-month private first at 7.49-10.99% (5-12 days). A private lender needs the loan to fit under about 75% of your home's value. Call the day the letter arrives. Time is the cheapest thing you have.

Why would a lender refuse to renew a mortgage?

Renewal is the lender's choice, not your right. Most mortgage contracts say so. The reason decides which lender will say yes next.

Reason	What the lender sees	Usual next lender
Missed payments or arrears	Risk of default	Private first, then a B-lender after 12 clean months
Credit score drop	Score under about 680, high card balances	B-lender (about 600+) or private
Income drop or self-employed	Income no longer qualifies	B-lender on bank statements
Consumer proposal or bankruptcy	Active insolvency on your file	B-lender with 25%+ equity, or private
Lender leaving the market	Nothing wrong with you	Another bank or credit union

Self-employed and turned down? Read the self-employed renewal plan.

What happens if you can't renew your mortgage?

On the maturity date, the whole balance is due. If it is not paid, the mortgage is in default. The lender can then start enforcement. The rules differ by province:

Ontario: the lender can serve a Notice of Sale after 15 days in default. You have 35 days to pay.
BC: the lender petitions the court. The court usually gives a six-month redemption period.
Alberta: the lender files a Statement of Claim in the Court of King's Bench. You have 20 days to defend.

Legal costs are added to what you owe. Each week of delay makes the payout bigger. See how to stop a foreclosure or power of sale.

How much notice does the lender have to give?

A federally regulated lender, such as a bank, must tell you at least 21 days before maturity if it will not renew. Many send the letter 60 to 120 days early. Credit unions follow provincial rules. A private lender follows your contract. Ask for a 30 to 60 day extension in writing. Some lenders agree if a new lender is already working on your file.

Your options, cheapest first

Another bank or credit union. Since 21 November 2024, an uninsured mortgage that switches lenders at renewal skips the stress test. The amount and amortization must stay the same. This often works when your lender is leaving the market.
A B-lender. Home Trust, Equitable Bank, Haventree Bank and MCAN Home lend at 6.0-8.5% on 1-3 year terms, plus about a 1% fee. You need about 20% equity and a score near 600. See B-lender mortgages.
A private first mortgage. 7.49-10.99% interest-only for 6-12 months, plus 1-2% lender and 1-2% broker fees. It lends on equity, up to 75% of value. See what a private mortgage is.
Sell on your own terms. If the equity is too thin, a planned sale beats a forced one.

What does a private mortgage cost after a denied renewal?

Illustrative example. A Brampton, Ontario home is worth $950,000. The owner owes $520,000. Two missed payments and the lender's costs add $8,000. The bank will not renew. Maturity is in 30 days, too soon for a B-lender.

Item	Amount
Payout to the bank, with arrears and costs	$528,000
Private first mortgage, 8.49% interest-only, 12-month term	$547,000
Lender fee, 1.5%	$8,205
Broker fee, 1.5%	$8,205
Legal and appraisal	$2,500
Monthly payment	$3,870
Total cost for 12 months (interest plus fees)	$65,350
APR	about 12.2%
Loan-to-value	58%

Fees come out of the loan, so the owner pays nothing up front. In Ontario you get FSRA's written borrower disclosure at least two business days before you sign.

The plan is to leave at month 10 to 12. After a year of on-time payments, a B-lender pays out the private loan. A year later, a bank may take the file back. Read the exit strategy guide.

The 60-day plan after a non-renewal letter

Day 0

Read the letter and call

Note the maturity date and payout. Call a broker the same day.

Days 1-3

Gather documents

Mortgage statement, ID, two years of NOAs, pay stubs or 6-12 months of bank statements.

Days 3-7

Ask for an extension

Ask your lender in writing for 30-60 more days.

Days 7-30

Bank or B-lender

The file goes to the cheapest lender that fits. Approval takes 2-3 weeks.

Days 30-50

Private if needed

If no bank or B-lender will close in time, a private first funds in 5-12 days.

Before maturity

Pay out the old lender

Your lawyer pays the balance. No default, no enforcement.

Province notes

BC

BCFSA regulates brokers under the Mortgage Services Act, in force 13 October 2026. Many BC homeowners bank with credit unions, which set their own renewal rules. BC lenders.

Alberta

RECA licenses brokers. Foreclosure goes through the Court of King's Bench, with a redemption period of 3-6 months. Alberta lenders.

Ontario

FSRA licenses brokers. Power of sale moves fastest here, so act early. Ontario lenders.

Mortgage renewal denied questions

Can my bank refuse to renew my mortgage?

Yes. Renewal is at the lender's discretion, even if you never missed a payment. A federally regulated lender must give you at least 21 days' notice before maturity.

What happens if my mortgage matures and I haven't renewed?

The full balance is due. If you do not pay it, you are in default and the lender can start enforcement. Some lenders give a short extension if you ask in writing and show a new lender is working on it.

Do I have to pass the stress test to switch lenders at renewal?

Not for a straight switch of an uninsured mortgage since 21 November 2024. You keep the same amount and amortization. If you add money or change the amortization, the stress test applies.

Can I renew my mortgage with bad credit?

Often, yes. B-lenders accept scores near 600. Private lenders lend on equity with any score. See bad credit mortgages.

Will a lender renew during a consumer proposal?

Some banks will not. B-lenders may, if you have 25% or more equity. A private lender will, based on equity. See the consumer proposal page.

Sources. Financial Consumer Agency of Canada, renewing your mortgage (21-day renewal notice) · OSFI, minimum qualifying rate removed for uninsured straight switches, effective 21 November 2024 · Ontario Mortgages Act, s. 32 · Alberta Law of Property Act and Court of King's Bench foreclosure process · BCFSA, Mortgage Services Act, October 2026 · FSRA, borrower disclosure (O. Reg. 188/08 s. 35) · Lender sites (Home Trust, Equitable Bank, Haventree Bank, MCAN Home), checked 4 November 2026.

Real people, not a call centre

Talk it through with a licensed broker before you decide

Tell us what is going on in a few lines. We call you back the same day with what lenders will say, what it costs in dollars, and how you get back to a bank. If private is the wrong tool, we say so.