A private mortgage often has a short term and a specific maturity date. If your lender says it will not offer another term, you may need to repay the balance at maturity even if you have made every payment on time. That is different from a bank offering you an unattractive renewal rate. Start with the written mortgage terms and lender's payout instructions; do not assume an extension, a replacement loan or a sale will close before the deadline.
Request the lender's decision, payout statement, maturity date and any extension proposal in writing today. If you have received a default, demand or enforcement notice, contact an Ontario real estate lawyer promptly for advice about your rights and deadlines.
Check the registered mortgage, maturity date, outstanding principal, interest, fees and any other charges. Ask whether the lender is willing to discuss a written extension and what the full cost would be. A conversation is not an extension until the lender agrees and documents it.
A bank, credit union or alternative lender will assess the property, available equity, income, credit, existing charges and timing. If your property value came in short, calculate the difference between the lender's proposed advance and the full private mortgage payout. A new approval is not automatic just because you already have a mortgage.
Another private mortgage or a second mortgage may buy time in some cases, but lender fees, brokerage fees, legal costs, interest and the next maturity must be considered together. Ask what must change during the new term to make the exit realistic. Repeating a short-term loan without an affordable exit can worsen the problem.
If the numbers do not support another loan, speak early with your lawyer about negotiation, a voluntary sale and the consequences of missing the payout date. A lender's refusal to renew does not by itself mean your home has already been sold, but ignoring formal notices or waiting until maturity can narrow your choices.
Whether an extension is available depends on your mortgage agreement and the lender's decision. Do not assume the lender must offer another term. Review the signed documents with your real estate lawyer and request the lender's position and payout requirements in writing.
You can ask, but it is the lender's choice whether to offer one and on what written terms. Compare any extension fees, interest and repayment deadline with the cost and timing of other options; do not rely on an informal conversation as a binding extension.
Calculate the difference between the full payout and what another lender will advance on its accepted value. Possible paths depend on cash available, credit, income, time and the lender's rules. Review the low-appraisal renewal guide and speak with a lawyer if a formal demand or enforcement notice has been issued.
Sarah Antonia Colucci, Mortgage Agent Level 2. For a review of your specific mortgage and deadline, call 647-773-4849. Financing and extensions are subject to lender approval.