refininaceing question

[Giseledta]

Warning, a girlfriend has me freaked out about.
She said , that you can denied when your morgage comes up for renewal , if you owe more then 80% of your morgage still

we put down our 5% 2.5 years ago.
we have made every payment. nothing late. or any of that silliness.


So . numbers wise.
if my morgage was for 200 000
and the total oweing does not fall under

160 000

will they refuse to refi?

and how does additional debt affect this number....

what if , I got the morgage down to .... 160 000 , but had 15 000 in student loans,and other debt....
would I then be denied..... becasue total debt was 175 000

yes. I know I am worrying. It took me a long time to get a morgage. and I am self employed. The person at the bank, I was very disapointed with .

any hoo. thank you.

[Giseledta]

adding. is there anything else that can help with refi'ing...
she mentioned , that they are checking al thier bills, and if you are late on anything... or have a history of being late on ... any bill.... hydro, cable, visa.... whatever....... that affects it.....

[MortgageQueen]

Warning, a girlfriend has me freaked out about.
She said , that you can denied when your morgage comes up for renewal , if you owe more then 80% of your morgage still

we put down our 5% 2.5 years ago.
we have made every payment. nothing late. or any of that silliness.


So . numbers wise.
if my morgage was for 200 000
and the total oweing does not fall under

160 000

will they refuse to refi?

and how does additional debt affect this number....

what if , I got the morgage down to .... 160 000 , but had 15 000 in student loans,and other debt....
would I then be denied..... becasue total debt was 175 000

yes. I know I am worrying. It took me a long time to get a morgage. and I am self employed. The person at the bank, I was very disapointed with .

any hoo. thank you.

Oh my. . .don't know where your "friend" got that info.

Why would a bank not refinance your mortgage if they already financed it with just 5 percent downpayment?! Especially if you made your payments on time! Besides that, most banks will STILL refinance even if you were late on a few payments. That's just the economy we live in. (not that I encourage that)

What your friend may be referring to is OSFI (Office of the Superintendent of Financial Institutions ) is currently putting forward a motion to propose that Cnd's must "requalify" to renew their mortgages which is BEYOND ridiculous. Somebody over there has waaay to much time on their hands to come up with that. Canadian mortgage brokers are vehemently fighting that. (ironically it would actually be Good for our business but we prefer to fight for our clients beghalf rather then put the screws to them).

We (brokers) are hoping this doesn't come to fruition for peoples sake. I even wrote them in protest myself. Your situation is a PRIME example of the chaos that rule would bring to peoples lives.

Ok. I'm done ranting. If you have a problem when your mortgage comes due, just contact me or a broker you trust. But as things stand right now you have absolutely nothing to worry about.

[ashedfc]

That rule is recommended to avoid rampant speculation & greed (couple with misrepresentation);
as I know a case where; husband has separated from his wife, so both can have a principal residence at 5% down payment, & they both live together in one house (as if there was no separation) & the other is for rent to multiple families (split level, where separate family lives at separate level)..

This kind of cases, is a recipe for disaster.. & there are many many cases like this, where people have become creative in their homeownership (just because interest rates are too low). It won't stay this low for long.... people need to prepare for the day when interest rates start moving.

Coming back to this thread: unless your lender goes bankrupt; you don't have to worry about renewal; mostly its an automatic renewal.. just make sure your bills are paid in time..

[Giseledta]

oh. thank you so much.
I just worry.
It was hard to get a morgage, as I am self employed.
We should be fine. and it should be no problems. But when she was telling me all this... I looked at her and went....... oh oh......
thanks for the info

[MortgageQueen]

oh. thank you so much.
I just worry.
It was hard to get a morgage, as I am self employed.
We should be fine. and it should be no problems. But when she was telling me all this... I looked at her and went....... oh oh......
thanks for the info

Be sure you don't just accept any'ol renewal rate the Bank offers either. People tend to sell their bargaining power short. Talk to a broker before it comes due to get some good advice. It's free.

[Giseledta]

really.... hmmmm. thanks.
I have 2.5 years before it comes up. so i have a bit of time to get my ducks in a row.

[MortgageQueen]

That rule is recommended to avoid rampant speculation & greed (couple with misrepresentation);
as I know a case where; husband has separated from his wife, so both can have a principal residence at 5% down payment, & they both live together in one house (as if there was no separation) & the other is for rent to multiple families (split level, where separate family lives at separate level)..

This kind of cases, is a recipe for disaster.. & there are many many cases like this, where people have become creative in their homeownership (just because interest rates are too low). It won't stay this low for long.... people need to prepare for the day when interest rates start moving.

Coming back to this thread: unless your lender goes bankrupt; you don't have to worry about renewal; mostly its an automatic renewal.. just make sure your bills are paid in time..

Well, imposing that rule would not stop those same people from committing fraud like they did in the first place. They would simply refinance under the same info they did before. AS long as they were paying the mortgage, requalifying would never "catch" these people. . . so it's pointless and only punishes the innocent.

[ashedfc]

Well, imposing that rule would not stop those same people from committing fraud like they did in the first place. They would simply refinance under the same info they did before. AS long as they were paying the mortgage, requalifying would never "catch" these people. . . so it's pointless and only punishes the innocent.

True, I fully agree (I too am not in favor of that)..
Its much like you bring a fancy/addictive game (like X-Box) and give it to your child.......... & than tell him not to play!!

[MortgageQueen]

really.... hmmmm. thanks.
I have 2.5 years before it comes up. so i have a bit of time to get my ducks in a row.

Exactly. Try and open some investment too . . .even if it's small. Banks love that. It makes you look like a "responsible saver".