Posted on: 21-06-12 08:58:55
I see that the new mortgage rules changed the amortization to 25 years from 30 years. My mortgage amortization is for 35 years (took the mortgage a few years back) and it will come up for renewal in the next year. How will the new rules affect me?
T
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"The grass is not, in fact, always greener on the other side of the fence. Fences have nothing to do with it. The grass is greenest where it is watered. When crossing over fences, carry water with you and tend the grass wherever you may be"
Quote:
Originally posted by Timon
I see that the new mortgage rules changed the amortization to 25 years from 30 years. My mortgage amortization is for 35 years (took the mortgage a few years back) and it will come up for renewal in the next year. How will the new rules affect me?
T
The new mortgage rules will take effect from 9th July, 2012 and are applicable to new mortgage only. So, you would not be affected by these rules IF YOU DO NOT REFINANCE at the time of renewal of your mortgage.
See here for some details http://www.fin.gc.ca/n12/data/12-070_2-eng.asp
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
Pramodji
Can you explain this " IF YOU DO NOT REFINANCE at the time of renewal of your mortgage"?
Thanks
T
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"The grass is not, in fact, always greener on the other side of the fence. Fences have nothing to do with it. The grass is greenest where it is watered. When crossing over fences, carry water with you and tend the grass wherever you may be"
Quote:
Originally posted by Timon
Pramodji
Can you explain this " IF YOU DO NOT REFINANCE at the time of renewal of your mortgage"?
Thanks
T
It means that if you;
do not add new funds to your mortgage or
take equity out or refinance your mortgage OR
change the balance and terms at the time of renewal of your existing mortgage then
you would be fine and would not get affected by the new mortgage rules.
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
What do you mean by this, they've just bumped up the refinance from 85% to 80%.
What would stop me from switching the provider ?
Quote:
Originally posted by ashedfc
Another caveat is "One cannot Refinance", which means you are at the mercy of the existing Bank's renewal terms (good or bad you are forced to accept).
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The cowards never started,
The weak died on the way,
Only the strong arrived.
http://www.youtube.com/watch?v=_yK1i9cLAMM
Quote:
Originally posted by ashedfc
You can switch but it will be a new amortization of 25yrs...
Lot of existing amortization are at 35yrs, even some 40yrs amortization are also on the books.. their monthly payments will increase substantially..
Hi Ash,
If the existing mortgage is CMHC insured, it can be switched to another lender without problem even if the amortization remaining is more than 25 years or even more than 30 years as once the mortgage is insured, it is insured for life of the original amortization. The only caveat is that there should be no change to the terms and condition and no new funds are added at the time of renewal or no refinancing is done at renewal.
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
This should've been done long time back.
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The cowards never started,
The weak died on the way,
Only the strong arrived.
http://www.youtube.com/watch?v=_yK1i9cLAMM
