Quote:
Originally Posted by fredr123
I hate to make things sound even worse for the OP, but is there any guarantee you can even stay put? If you're that far offside your mortgage, what's to stop the lender from refusing to renew the loan?
You'd be stuck having to pay the outstanding balance and you probably wouldn't be able to get new financing for that amount since you've got zero equity in the place and it's value wouldn't justify such a large loan.
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There's been talk of OSFI changing the rules regarding mortgage renewals that won't allow a bank to roll people forward if the Loan Value is above the market value.
http://www.osfi-bsif.gc.ca/app/DocRe.../b20_dft_e.pdf