Quote:
Originally Posted by Coys1882
I have a family member who is a mortgage broker and she said she's had a ton of her clients, with a couple years left on their current mortgage, pay the penalty, to lock into a 30 year one before the deadline. That's the way I understood the story anyway - cool story bro I know.
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Well that makes sense if they're currently below 30 years and want to stretch it back out again while the 30 year amortization option is still on the table. Not sure what CMHC fees would be as I've never stretched out an amortization before. I'm sure there's a small additional charge.
My first thought it what a waste of money. Paying an IRD to pay more interest. But - everyone's situation is different. I guess on the upside it could have been a good refi time anyway (low rates vs. what they had prior).