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Originally Posted by fotze
But now the bank can totally fistfata the person.
Your new renewal rate is 12%. Oh you don't like that rate? Its not competitive? Try phoning our competitors, here are the phone numbers numbers. Oh right you can't. The rate is now 12.5%.
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CMHC insurance is curremtly transferable. I would assume you can still shope rates, but a phone call could verify that with CMHC if for example your 35 year mortgage was renewing after 3 years.
Quote:
Originally Posted by Mike F
Be careful how you go about checking your prepayment penalty. A lot of mortgages I see state that if you request a payout statement you cannot then take advantage of any prepayment options. Prevents people from prepaying a bunch right before refinancing and avoiding a big chunk of the penalty.
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This is true. Deserves more than a thanks.
Just to note, when Canada went from 40 years to 35 years as a maximum amortization, CMHC still allowed refinancing up to 40 years as a default management tool. I haven't had a chance to look at the toolkit in full after the news release, but I would imagine that is still in place.
CMHC will also allow a homeowner to refinance to deal with some important repairs even if there isn't enough equity in the property to cover the costs for homeowners with in a tough financial spot. An example of this would be a mold issue.