Renewing mortgage while unemployed

[Gammaboy]

Curious if anyone has renewed or refinanced their mortgage while unemployed? I've been subcontracting for a decade and my mortgage is up for renewal this year, 2015 was a good year for work but 2016 looks like a complete bust.

Is it worth it to shop around or should I plan on just signing the renewal form?

[bergman]

If you change mortgage holders, you will need to "qualify" for a mortgage all over again. If you shop around, you may not qualify without a steady income.

We went through this once when my work hours were way down. We ended up renewing with the same mortgage company, BUT... we still were able to talk them down half a percent by saying "this (such and such) mortgage company has this rate, so what can you do for me in order to make me stay with you?" Just because you are staying with the same company doesn't mean you have to take the first thing they offer.

It was worth it for us. We didn't misrepresent ourselves or anything like that at all, we just pointed out that they were a half point higher than their competitors.

Check canadamortgage.com for current rates (http://www.canadamortgage.com/RatesShow/ShowRates.php)

Its a great place to get an idea of what rates are at the moment.

Good luck!

[67ZL1]

I didn't have any issues getting a mortgage being self employed. If you change lenders then they will want to see your company's financials for 2 or 3 years.

[PINEHURST-PIKE-FREAK]

Curious if anyone has renewed or refinanced their mortgage while unemployed? I've been subcontracting for a decade and my mortgage is up for renewal this year, 2015 was a good year for work but 2016 looks like a complete bust.

Is it worth it to shop around or should I plan on just signing the renewal form?

Look into a broker,make the financial institutes fight for your business.I wouldn't say a word about your current work situation.

[HalfBreed]

Look into a broker,make the financial institutes fight for your business.I wouldn't say a word about your current work situation.

^This^

I did this after leaving the military and saved me a load of loot.

[Clgy_Dave2.0]

If you change mortgage holders, you will need to "qualify" for a mortgage all over again. If you shop around, you may not qualify without a steady income.


Look into a broker,make the financial institutes fight for your business.I wouldn't say a word about your current work situation.

See post above yours.


If the OP is unemployed any new lender likely won't want to deal. Broker or not.
I have a customer (general contractor) who was building a custom home in Strathmore. His customer was making great money and just kept adding extras upon extras during the build. (Tile was almost double the budgeted amount) When it came time to take possession, the house was worth over $700,000. Unfortunately in the meantime, said customer got his salary cut in half. Even though he was preapproved the bank said "no income? No mortgage. Sorry". The general contractor is now stuck with a $700,000 house on a block where all the other houses are $400,000-500,000 and is trying to recoupe his carrying costs.

[schmedlap]

do NOT go looking for alternatives. Your current info will get "shared" amongst the financial institutions as a result, and your current lender may get nervous and withdraw. DO go to your current lender, in person, and ask them if that is really the best they can do, without disclosing your current situation. They will not check it out -just tell them that your friends have suggested you can get a better rate, and/or that it appears from your research on the matter that you can. They will offer some discount. Take it and run.

[Domestique]

See above.
If the OP is unemployed any new lender likely won't want to deal. Broker or not.
I have a customer (general contractor) who was building a custom home in Strathmore. His customer was making great money and just kept adding extras upon extras. When it came time to take possession, the house was worth over $700,000. Unfortunately in the meantime, said customer got his salary cut in half. Even though he was preapproved the bank said "no income? No mortgage. Sorry". The general contractor is now stuck with a $700,000 house on a block where all the other houses are $400,000-500,000 and is trying to recoupe his carrying costs.

Sounds like the GC really dropped the ball on this.. When building you do not pay for a house when you "take possession". All of the funds are in place and the contractor takes draws on key dates. The home is fully funded (mortgage money in trust, totally separate from being "pre-approved") before the build starts. Funny story though.

[Clgy_Dave2.0]

do NOT go looking for alternatives. Your current info will get "shared" amongst the financial institutions as a result, and your current lender may get nervous and withdraw. DO go to your current lender, in person, and ask them if that is really the best they can do, without disclosing your current situation. They will not check it out -just tell them that your friends have suggested you can get a better rate, and/or that it appears from your research on the matter that you can. They will offer some discount. Take it and run.

^^ Listen to this man!

[Gammaboy]

Thanks for the input, I've got until June to renew so hopefully something will be happening by then. If not I'll just renew and wait for something to change (its not as bad as it sounds, I also have a grain farm so I'll be busy in the spring. I just won't have the winter cash I got used to).

[diamond k]

Sounds like the GC really dropped the ball on this.. When building you do not pay for a house when you "take possession". All of the funds are in place and the contractor takes draws on key dates. The home is fully funded (mortgage money in trust, totally separate from being "pre-approved") before the build starts. Funny story though.

Exactly. If this contractor got stuck with this house he made a huge mistake getting into this situation.

I have heard this storey before but think it is contractor urban myth.

I don't start a house without at least 10 percent down and paid on draws. I don't or can't ever get stuck with a house. I have had a guy go broke half way through a house but bank owned the home and paid me to finish it.

[Clgy_Dave2.0]

I have heard this storey before but think it is contractor urban myth.

Calling me a liar?

It's not a story. It happened. I was there. I know the contractor.

If you want to start a thread about what a GC should or shouldn't do, or how to build a house, go start a thread.

Point BEING......don't go shopping for another lender when you don't have a job.

Simple enough?

[PINEHURST-PIKE-FREAK]

Actually if you read the OP question he stated he is a contractor and therefore he is self employed.If he originally qualified he will likely have the same info/income etc,as long as his credit is good I can't foresee an issue.As far as your "info" everyone shares it!Every utility,credit card,phone,cable,insurance etc company searches your info

[justsomeguy]

If you're in an industry that will be impacted further by a prolonged low oil price I'd renew now, get the best rate you can from your current bank and run with it. Sometime down the road if oil starts to stay down the banks are going to start looking harder at mortgage renewals in AB/SK, renew now if you think there is a chance your situation may get worse down the road.

[Domestique]

Calling me a liar?

It's not a story. It happened. I was there. I know the contractor.

If you want to start a thread about what a GC should or shouldn't do, or how to build a house, go start a thread.

Point BEING......don't go shopping for another lender when you don't have a job.

Simple enough?

HAHA!! Your story had nothing to do with the OP shopping for a mortgage whilst not having a job. You shoulda' started a new thread with your story.

[norwestalta]

If you're in an industry that will be impacted further by a prolonged low oil price I'd renew now, get the best rate you can from your current bank and run with it. Sometime down the road if oil starts to stay down the banks are going to start looking harder at mortgage renewals in AB/SK, renew now if you think there is a chance your situation may get worse down the road.

Just curious as to why the bank wouldn't renew a mortgage? What happens if the bank doesn't renew? I would think that the bank would rather renew then foreclose.

[bergman]

If you're in an industry that will be impacted further by a prolonged low oil price I'd renew now, get the best rate you can from your current bank and run with it. Sometime down the road if oil starts to stay down the banks are going to start looking harder at mortgage renewals in AB/SK, renew now if you think there is a chance your situation may get worse down the road.

^Yes, if you are sticking with the same lender, you can usually renew early with no penalty, and still negotiate a good rate. Tell them you are looking at different options for when your renewal comes up, and want to know what they can offer. They will probably ask you to renew ASAP.

They want to lock in your business, so if you think rates are on the rise, you can probably (which they seem to be lately, at least a bit) you may want to look into it.

Another reason to renew early would be if you think your recent earnings are ok, but your earning for the next few months will be bad. They don't want to know the future, they want to know your financial history. So if you renew now, your history might still look really good.

As long as you make your payment every month, the lender will be happy.

[TBD]

Curious if anyone has renewed or refinanced their mortgage while unemployed? I've been subcontracting for a decade and my mortgage is up for renewal this year, 2015 was a good year for work but 2016 looks like a complete bust.

Is it worth it to shop around or should I plan on just signing the renewal form?

if you shop around - the competitive mortgage brokers are going to want a full set of financials for a business or t4's in a personal situation ... if you can not warrant monthly payment with the above ^ there not going to be to hungry for your business ...

maybe others have had exp with this in the past ?

good question though ...

[beltburner]

check out Manulife one. line of credit mortgages

[roper1]

'Mortgage Made Easy' are sponsors here. Why not send them a PM ?

[justsomeguy]

Just curious as to why the bank wouldn't renew a mortgage? What happens if the bank doesn't renew? I would think that the bank would rather renew then foreclose.

Oh they'll renew, but if you're un or underemployed at the time you're interest rate will be higher as you're a higher risk for default. If you shop around too much and other lenders want a full breakdown of your finances you'll get rejected or offered higher rates. Every one of those applications goes onto your credit score.

[Buckhead]

Curious if anyone has renewed or refinanced their mortgage while unemployed? I've been subcontracting for a decade and my mortgage is up for renewal this year, 2015 was a good year for work but 2016 looks like a complete bust.

Is it worth it to shop around or should I plan on just signing the renewal form?

If the renewal rate is any where close to competive with the market, I would just shut up and renew.

[purgatory.sv]

Curious if anyone has renewed or refinanced their mortgage while unemployed? I've been subcontracting for a decade and my mortgage is up for renewal this year, 2015 was a good year for work but 2016 looks like a complete bust.

Is it worth it to shop around or should I plan on just signing the renewal form?

Renew, do it now.

[diamond k]

Calling me a liar?

It's not a story. It happened. I was there. I know the contractor.

If you want to start a thread about what a GC should or shouldn't do, or how to build a house, go start a thread.

Point BEING......don't go shopping for another lender when you don't have a job.

Simple enough?

Well if it is indeed true than this contractor is a terrible business man. Why would any contractor build a house and then accept thousands of dollars in extras without the client having any skin in the game.

He must have been financing the house himself which also makes no sense and also leads to more holes in the story.

Sorry but either this was the dumbest contractor around or there is something missing in the tale.

If you don't mind send me his number, I have some ocean front property in Arizona for sale and he seems just like the buyer I have been waiting for.

[RescueDiver]

See post above yours.


If the OP is unemployed any new lender likely won't want to deal. Broker or not.
I have a customer (general contractor) who was building a custom home in Strathmore. His customer was making great money and just kept adding extras upon extras during the build. (Tile was almost double the budgeted amount) When it came time to take possession, the house was worth over $700,000. Unfortunately in the meantime, said customer got his salary cut in half. Even though he was preapproved the bank said "no income? No mortgage. Sorry". The general contractor is now stuck with a $700,000 house on a block where all the other houses are $400,000-500,000 and is trying to recoupe his carrying costs.

Agreed....trust me when I say this....I was a mortgage broker for the past 6 years. "If you are unemployed, you will NOT get approved for a mortgage from another lender." Just go with you existing lender.

And I have had this exact same thing happen to another GC I work with.

[borisdavenport]

Hi Gammaboy,
Last year I came through exact situation. I tried to get advises from some local experts and from some of my friends. Each one said different opinions. I was totally confused at that time,:shark: I couldn’t take a correct decision from the advises I got. At last I renewed mortgage, I consulted an experienced mortgage broker and they help me to take correct decision
Theoretically, while renewing our mortgage, we should be in a stronger financial position as compared to where you were before. As you are currently unemployed situation turns complicated. I recommend you to consult a mortgage broker. Mortgage renewal calculator can help you to settle on educated decisions and empower you to save some dollars on your next Mortgage term.
Calculator:http://www.canadamortgagedirect.com/tools-resources/calculators/mortgage-renewal-calculator/

[borisdavenport]

Agreed....trust me when I say this....I was a mortgage broker for the past 6 years. "If you are unemployed, you will NOT get approved for a mortgage from another lender." Just go with you existing lender.

And I have had this exact same thing happen to another GC I work with.

Sir can I have your email, I have some questions hope as an expert in mortgage field you can clear my doubts :test:

[Gammaboy]

Forgot to update when I renewed in April. I talked with a mortgage broker and she thought she could do something, I talked with my bank and was upfront that my winter was non-existent but still farming and hoping summer would be better etc. I had received an offer in the mail to renew at 3.5% but in person at my branch I was offered two years at 2.04%, I checked with the mortgage broker and she said there was no way she could match that so I renewed with my local branch. I'm pretty happy with the outcome and glad I didn't just sign the offer and mail it back like I was tempted to do.

[borisdavenport]

Forgot to update when I renewed in April. I talked with a mortgage broker and she thought she could do something, I talked with my bank and was upfront that my winter was non-existent but still farming and hoping summer would be better etc. I had received an offer in the mail to renew at 3.5% but in person at my branch I was offered two years at 2.04%, I checked with the mortgage broker and she said there was no way she could match that so I renewed with my local branch. I'm pretty happy with the outcome and glad I didn't just sign the offer and mail it back like I was tempted to do.

:) I always approach my broker when situations become critical. I Don't understand what my lender is saying!:angry3: I don't know the meaning of financial terms.:scared0018: . I usually call my broker to help me and it really works :love0025:

[Big Grey Wolf]

Guys in Alberta right now when your job may be at risk suggest you lock in your mortgage for longest term eg 5 -!0 year. Just to save a few points on interest you may be without a mortgage. Banks are not your friend they just want minimum risk so reapplying for a mortgage ever year is highly risky.

[steve19]

Thanks for the input, I've got until June to renew so hopefully something will be happening by then. If not I'll just renew and wait for something to change (its not as bad as it sounds, I also have a grain farm so I'll be busy in the spring. I just won't have the winter cash I got used to).
We just moved lenders for our mortgage, through a broker and it was a bigger ordeal then when we bought our first house! We supplied more proof of income and tax statements than we have ever had too. The way the economy is lenders are being very careful. That being said while we were deciding which lender to go through our broker told us that if we passed the renewal date without resigning our current lender would continue to withdraw our payments. Basically the mortgage would be open until we resigned with them or signed with a new lender. So you could always leave it open and shop lenders when work picks up. Also a broker is the best way to go and could confirm this for you (don't just take my word for it) but that is what we were told.

[Dean2]

Was in the banking business over 35 years. It amazes me that most clients still do not understand that developing a relationship with their bank has a great many positives. If you have been a long term good customer your existing bank is far more likely to stand behind you if you run into problems. also, from a bank's perspective it is much less expensive to keep an existing customer than to go get new ones.

In the OPs particular case, go in, see your branch lender and ask what the best price is for the term you want. You are a good customer and the bank will reduce the rate from the mail out offer they sent you. DO NOT shop around if you aren't likely to qualify for your existing mortgage.

The only Bank I know of that posts their actual bottom line rates, and offers those rates in their renewal documents is ATB. ATB also has a real long history of standing behind their clients when things get tough. Not true of the other banks and I worked for 4 of them. As far as rates, all the others have room to negotiate on the mailed out rates.

That said, if you aren't with ATB and you pay an 1/8 to a 1/4 more than the cheapest bank is offering that will seem insignificant in the event the poop hits the rotating oscillator. Run into problems with a bank you have no history with and you are not going to get any kind of slack.

Keep your banks long term, even if you use two so you have options. Make sure you get to know your bank manager personally, even if he changes ever 4 or 5 years. You will get far better deals and service if you do this.

[R3illy]

It surprises me how much bad advice there is in this thread.

If you need to pay hundreds of thousands more in interest on your mortgage to get some slack with the bank what good is that. Great lets over pay for years upon years to a big bank IN CASE leeway is needed.

It's not like there is anything in writing with a mortgage saying a bank will be lenient with you.. But let's pretend like they will.

I know with the few mortgages I have it's the one with one of the big 5 banks that always gives me the most hassle. For example my most recent renewal this month still hasn't been processed. It's taken 2 weeks for them to match other lenders. They originally started significantly higher then the other large banks... My relationship with them has meant nothing. Even when I went to add another mortgage with them they ****ed around with higher interest rates so I went elsewhere.

The big banks are the worst to deal with when it comes to renewals. At least the smaller lenders cut right to the point with the best possible rates.

And kudos to atb for being one of the banks to change this ridiculous way in doing business with mortgages. I absolutely hate my bank for having to jump through hoops on a renewal

[Dean2]

It surprises me how much bad advice there is in this thread.

If you need to pay hundreds of thousands more in interest on your mortgage to get some slack with the bank what good is that. Great lets over pay for years upon years to a big bank IN CASE leeway is needed.

It's not like there is anything in writing with a mortgage saying a bank will be lenient with you.. But let's pretend like they will.

I know with the few mortgages I have it's the one with one of the big 5 banks that always gives me the most hassle. For example my most recent renewal this month still hasn't been processed. It's taken 2 weeks for them to match other lenders. They originally started significantly higher then the other large banks... My relationship with them has meant nothing. Even when I went to add another mortgage with them they ****ed around with higher interest rates so I went elsewhere.

The big banks are the worst to deal with when it comes to renewals. At least the smaller lenders cut right to the point with the best possible rates.

And kudos to atb for being one of the banks to change this ridiculous way in doing business with mortgages. I absolutely hate my bank for having to jump through hoops on a renewal


Guys like you are almost impossible to help. Do you own a friggiin calculator. Do you know what .0025% more on 300,000 amounts to, even over 15 years? It is less than $7,000, not anywhere near the hundreds of thousands you are talking about. If you don't know your butt from a hole in the ground you might want to keep your opinions to your self.

You pay your insurance an extra premium for "Accident Forgiveness" and think nothing of it. What you pay on that over a lifetime adds up to a hell of a lot more than the quarter point on your mortgage.

If you don't believe relationships matter in business then never go into business for yourself and hope like hell you never need to rely on long term relationships to help you out of a jam.

[Big Grey Wolf]

Your banker is not your friend. They have two types of managers, the ones that act like your friend and approve your loan. Then they are replaced with the mangers with baseball bats during tough economic times. ATB is still the best to stand with their client during tough times.

[Arty]

Your banker is not your friend. They have two types of managers, the ones that act like your friend and approve your loan. Then they are replaced with the mangers with baseball bats during tough economic times. ATB is still the best to stand with their client during tough times.

Not everyone agrees with that last claim.

https://www.amazon.ca/Banksters-Prairie-Boys-Culture-Corruption/dp/0968181007

Considering the extensive government connections and socialist history though, it'd be interesting to see if the NDP victory straightened them out.

[Dean2]

Not everyone agrees with that last claim.

https://www.amazon.ca/Banksters-Prairie-Boys-Culture-Corruption/dp/0968181007

Considering the extensive government connections and socialist history though, it'd be interesting to see if the NDP victory straightened them out.

That was the ATB pre 1999 that basically went bankrupt. There is nothing for the NDP to straighten out, ATB got straightened out under the conservative government, it was rebuilt under Paul Haggis from head to toe starting in late 1998. The entire senior leadership team was replaced and so were many of the line staff. It is 30 times the size it was in 1999, is a Crown corp divorced by act from political interference. An MLA is not even allowed to deal at ATB personally nor are they allowed to speak directly to any ATB staff. All input needs to go through the independent Board of Directors. The bank is professionally run by a group of top notch people. It is ranked the 4th best employer in Canada to work for, not something you will find in Government run operations. It has been consistently profitable and growing since 2000. That is not the company Rahal wrote his book about.