Mortgage renewal with bruised or damaged credit
Your existing lender must offer you a renewal regardless of your current credit score — no re-qualification, no credit pull for approval purposes. Only switching lenders requires a fresh credit review. Take the retention offer as your safety net, then decide whether to shop.
What makes this different
- Below 680, most A-lenders won't switch you at their best rate.
- Below 600, you're likely looking at B-lender or private options if you switch.
- A B-lender renewal is a bridge, not a destination — the goal is one clean year, then back to A.
How to approach your renewal
Renew with your current lender first — this is your protection. They cannot refuse renewal based on credit.
Simultaneously, work on the score: pay every balance below 30% of its limit, dispute any errors on Equifax/TransUnion, and don't apply for new credit for 6 months before you want to switch.
If you must switch (e.g. buyout or refinance), a broker with B-lender access (Home Trust, Equitable, Community Trust, MCAN) can usually find something 0.75–2.0% above A rates — expensive, but a bridge back to prime.
FAQ
They can offer a higher rate at renewal than they would to a prime borrower, but they cannot refuse renewal or trigger re-qualification. Your existing contract is your protection.
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Jay Klair, Mortgage Agent Level 2 (M09000869) — Real Mortgage Associates, FSRA #10464, part of the DLGC Group of Companies · 5675 Whittle Rd, Suite 100, Mississauga, ON L4Z 3P8