Did you speak to a mortgage specialist in that bank to see why the mortgage renewal was declined? You should shop around using a mortgage broker to see what you are qualifying for.

ON Canada - would you know why they do not want to deal with you? Did you have a run in with them in the past? If you are in ON Canada, email me and we can refinance you with another lender assuming we can comply with their requirements and guidelines. I am also interested on knowing about any experience you had with the particular bank you dealt with . Email me at victor_catalan@centum.ca and we can chat.

They may not as you are in default and they may have called in the mortgage as due. Check at what extent they have moved forward with the default. You may still renew with another lender provided your reasons for the default can be substantiated and deemed unavoidable. Also the rates may be high as well.