Main Question Regarding New Canadian Mortgage Rules
“Can I Switch Lenders In The Future Even If My Original Mortgage Doesn’t Qualify Under The New Rules?”
Ok, first lets revisit the new rules.
Amortizations on bank and institutional mortgages can’t be higher than 30 years.
The loan to value offered under an insured mortgage loan or an uninsured residential home mortgage for a mortgage refinancing, cannot exceed 85%.
If you’ve already got a mortgage in place where the amortization is greater than 30 years and the loan to value is higher than 85%, how do the new rules apply to you if you want to move your mortgage from one lender to another.
From what I’ve been reading, you can still make the move to another lender and retain the higher amortization and loan to value, provide that…
- The amortization period does not increase
- The loan amount does not increase
- The loan to value amount does not increase
While on the one hand, that’s good news to those who are in this situation.
On the other hand, it could be harder than you think to find a lender that will take on your mortgage and assume the amortization and loan to value that comes with it.
Mortgage lenders have already changed their programs to adjust to the new rules and are only dealing with the exceptions related to property purchases that were closing prior to the rule change.
As a result, most lenders will likely not have the flexibility in their go forward programs to accommodate your requirements, and the ones that do may not be offering the rates you’re looking for.
If you find yourself in this situation, the best first step is work with an experienced mortgage broker who will be able to help you identify the best options available to you in the market and then help you get the new mortgage in place.
Give me a call and we can go through your situation together and discuss relevant options for mortgage refinancing.
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About the Author Joe Walsh
I'm a Toronto Mortgage Broker that arranges mortgage solutions on residential and commercial real estate property. With over 30 years of mortgage financing experience, I'm able to quickly assess your financing requirements and provide relevant solutions for your immediate consideration. Joe Walsh Google+ YouTube Channel