Possible to change the lender at the time of mortgage renewal?

[Michael Rivera]

Hi,

I’m planning for my mortgage renewal. But, I have a doubt. Can I change the lender at this moment? I am using Canada mortgage direct( http://www.canadamortgagedirect.com/) and renewal is a necessity for me. My credit score is 637. Is there any issue if the credit score is less? Are there any lenders providing FHA-insured mortgages? Has anyone changed the lender at the time of renewal? Need your suggestions. I would like to hear from the experts as well about the pros and cons of doing so.

Thanks in advance

[Luc Boiron]

@Michael Rivera

I think @Roy N. would be able to provide some additional advice on this.

In my experience, if you have been making all your payments on time, lenders will simply renew your mortgage without qualifying you at renewal time. However, if you attempt to change lenders at renewal, you need to qualify again. Your credit score is on the lower end but may be possible, it will also depend on your income and your current debt, so a mortgage broker would need to look at the whole picture to see what they can get you.

I'm assuming this property is in Canada. The FHA is a US organization, so you won't find FHA insured mortgages here. Our main mortgage insurers are CMHC and Genworth, who insure mortgages, usually when the down payment is less than 20%. I am not sure why you are looking for an insured mortgage at renewal, perhaps you could provide more information.

I definitely recommend you speak to a mortgage professional - I have some I find to be good if you would like some references.

Best of luck!