A friend of mine asked me a question the other day and I wasn't sure what to tell him.
He and his wife signed into a 30 or 35 year mortgage (I can't recall) which is up for renewal in approximately 6 months. I was 99% sure that if they renewed their mortgage with the same lender they could keep the term as is (i.e. not be forced to reduce the term to 25 years in conjunction with the revised rules). However, apparently they have their mortgage through a subsidiary of CIBC, who is shutting down and no longer financing mortgages. Best I understand it, by default their mortgage transfers directly to CIBC upon renewal.
So, when they renew are they forced to go with CIBC with the revised 25 year term? Or since their original term was 30-35 years could they keep that?
Following this, if they decided to go with another lender all together could they qualify somehow to keep their 35 year term, or would they be forced to requalify under the 25 year period?
|