Hello,
wondering if someone could shed some light on this -
1. suppose a mortgage is taken for 75% of house value (say 300k agst house worth 400K).
2. house price declines to 320K.
3.if mortgage payments are made on time, does the Bank ask for a paydown of the mortgage to bring loan to 75% of market value?
rgds
newboyo
Quote:
Originally posted by newboyo
Hello,
wondering if someone could shed some light on this -
1. suppose a mortgage is taken for 75% of house value (say 300k agst house worth 400K).
2. house price declines to 320K.
3.if mortgage payments are made on time, does the Bank ask for a paydown of the mortgage to bring loan to 75% of market value?
rgds
newboyo
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Say if your mortgage is for a period of TEN years, they normally will not bother you for the first ten years. The problem may arise if they want to reassess the property when you try to renew it. (They normally do it anyway.) Things may pass over by that time.
But currently we are also heading down wards in the valuation. Also they have raised the percentages to 80% and some times it favours us slightly. So keep a smile on your face, or as we say grin and bear it.
Sleep well.
Freddie.
Posts: 75
Location: Toronto (416-7305795)
Posted on: 18-01-09 18:13:40
Location: Toronto (416-7305795)
Posted on: 18-01-09 18:13:40
The Mortgage Agreements are established for a term and you need not to worry.
On renewal you could always review.
Hope this helps.
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TS
Thanks Freddie and Mr Scorpio.
Rgds,
Newboyo
ps Scorpio - hope that isn't ur real phone number
