Practical Suggestions Requested from Mortgage Experts - Post March 18, 2011
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Posted on: 28-02-11 17:28:23
I would like to obtain practical suggestions from mortgage advisors for persons going for mortgage renewal post 18th March 2011.
The purpose of this thread is to be practical and NOT to cheat the system.
Laws and Rules are made by humans with good intention and when they are made the bypass(methods to work around them are also made)methods are also deviced by smart mortgage agents.
The show must go on as houses have to be sold, mortgage has to be given out and banks and financial institutions have to make money by lending out money.
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I banks will finance 80% of the appraised value of the home(which i presume will be from the property tax assessment by the municipality) with a maximum amortization of 30 years.
Eventhough a person could have got 0% DP mortgage on a 40 year mortgage period 3 years ago and in another 2 years the mortgage renewal with a hypothetical amount of 100,000 Dollars will the person need to put down 20,000 at the time of renewal or there is a way to work around the system?.
If not many a persons will find it difficult to cough up monies around 80K to 100K for renewal of mortgage and they will be forced to default on their mortgage renewals.
Kindly give your valuable inputs.
TKS..............
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Sunny Leone a true Canadian DESI now back in India !.
Quote:
Originally posted by Vandematram
I would like to obtain practical suggestions from mortgage advisors for persons going for mortgage renewal post 18th March 2011.
The purpose of this thread is to be practical and NOT to cheat the system.
Laws and Rules are made by humans with good intention and when they are made the bypass(methods to work around them are also made)methods are also deviced by smart mortgage agents.
The show must go on as houses have to be sold, mortgage has to be given out and banks and financial institutions have to make money by lending out money.
----------------------------------------------------------------------------------------
I banks will finance 80% of the appraised value of the home(which i presume will be from the property tax assessment by the municipality) with a maximum amortization of 30 years.
Eventhough a person could have got 0% DP mortgage on a 40 year mortgage period 3 years ago and in another 2 years the mortgage renewal with a hypothetical amount of 100,000 Dollars will the person need to put down 20,000 at the time of renewal or there is a way to work around the system?.
If not many a persons will find it difficult to cough up monies around 80K to 100K for renewal of mortgage and they will be forced to default on their mortgage renewals.
Kindly give your valuable inputs.
TKS..............
You do not need to work around the system as CMHC mortgage insurance is good for the life of the mortgage.Borrowers renewing an insured mortgage will not be affected by these changes. For example, if a borrower had a 40 year amortization and there are 37 years remaining on the mortgage, the mortgage can be renewed with a 37 year amortization, as long as no new funds are being added to the mortgage.
Hope this clarifies.
See this http://www.cmhc-schl.gc.ca/en/corp/faq/faq_008.cfm for more answers.
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
Thanks a lot for this information.
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Sunny Leone a true Canadian DESI now back in India !.
