Quote:
Originally Posted by Clarkey
How does that work when you go to refinance when your term is up? Could they potentially tell you to pound sand on your rental property and not renew your mortgage?
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If he got 5% down originally, he had to buy mortgage insurance, probably from CMHC. That insurance is good for the entire length of the mortgage, and means that the bank has no risk. If he defaults, CMHC pays the bill. And the insurance is transferable.
The effect of that is that if his current lender doesn't want to renew for any reason, its easy to transfer the mortgage to a new one (get a mortgage broker) since the goverment is guaranteeing the debt. It's no risk to the bank.