okay, I got the impression from the poster above the a reset on your amortization is an automatic insurance thing or something. That seemed weird to me.
okay, I got the impression from the poster above the a reset on your amortization is an automatic insurance thing or something. That seemed weird to me.
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Hmm, reading what's on Ratehub, sounds like you only pay more CMHC if you took out more money and increased the ratio.
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Well... this gives me hope for my job security
You pay cmhc ONCE... and it follows you around, you can port to a new property too. This is an INSURED loan. Then there is an insurable loan... which would be suntan’s “I have 20% equity” case... these are on purchases under $1mm, and amortization of 25 or less years. NO refi’s... you do anything to that loan, including changing am and it’s a refi... which goes into pile 3... uninsurable
Uninsurable is purchases over $1m, am over 25yr, and refi’s
The rates you will be offered from cheapest to highest: insured, insurable (with borrower paid insurance), insurable (loan to value plays a role in these), uninsurable
Depending on how the wind blows that week it can be a staggering swing. Rate sheets are a mile long now... but an example from one lender that was updated today. They are at 3.59% for insured, 3.59 for borrower paid and LTV under 65% for insurable, 3.64 up to 70, 3.85 up to 80, and uninsurable is at 3.94... and that’s all on 5yr fixed
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Originally Posted by Buster
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No a refi means it’s now NOT insured... which means you lose access to the best rates. Other fun thing about insured loans is if you transfer to a new lender and you are underwater... the loan will still go through, if you refi’d that means you had to have at least 20% equity left... and they need to make sure you still have that in the property when they write the new loan or you will be stuck with your current lender.
It all has to do with securitizing the loans, if you pay insurance, great! If not the lender will if they can... but that’s a cost, so higher rate. If they can’t... then they can’t be shipped off to the secondary market and those loans sit on their books... so they can’t relend that money, and their returns on their available capital diminishes... so they charge you even more money... on top of that they need to have enough deposits to keep their ratios in line for the money they have lended out... it’s such a concern that some monolines (they have to pay banks for access to a balance sheet since they can’t take deposits) don’t even offer an adjustable mortgage on uninsurable loans!
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I feel like either things have changed since I last did this, or I'm confused, or something.
Example Scenario. Get 25 year amortization, 5 year term (insurable) mortgage in year 0. In Year 5 when the term is up, renew that same property mortgage for a new 25 year term. Is THAT a refinance? Because I've done that and I'm sure my rate was same if I changed amortization or not. I shopped that rate around too, and it was competitive.
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That's what he is saying.
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Correct, that’s a refi... and yes this is relatively new, about 2yrs ago they did the first massive wave of changes to the rules, and last jan they did the final changes and it turned everything upside down... even the lenders were trying to figure it out well into marchThis quote is hidden because you are ignoring this member. Show Quote
I think the idea probably is that people only push out ams if they have to, even though @suntan strategy is the best one.
So pushing an am is seen as a risk indicator.
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ok, mine may have been more than two years ago, before the changes. And truthfully, that's a decent risk indicator, so the change in rules makes some sense.
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I renewed last November, changed amortization to 20 years, had no problem getting 2.49%.
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^^Yup, prechanges... also any live deals got the old rules too I’d they were sent in prior to the new year. so if you had something in for a new build, or rate hold set on a renewal, etc that was all grandfathered
Oh, you just reminded me... rentals: uninsurable! Haha... so pushing the am on those for sure makes sense, more cash flow, more interest write offThis quote is hidden because you are ignoring this member. Show Quote
Cowboy Hunter
Well that sucks. Oh well, it's still better than staying in my current industry and missing half my kids life.
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Go variable, keep your eyes peeled for promos... last May I was able to get someone P-1 on an uninsurable purchaseThis quote is hidden because you are ignoring this member. Show Quote
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We just renewed our mortgage and got Prime - 1.15% on 5 year variable rate through a smaller lender.
TD can go eat shit.
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Mcap? That’s a deep buy down... your poor broker. You should be buying THEM a gift
But yeah, TD isn’t very competitive... great if you’re borderline not getting approved though
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Ok so seems relevant to this:
Currently in a 25 year, with 20 left.
Selling our house, so getting preapproved for next one. Do I go for another 25 year, or continue with the 20. Hopeing that following the sale and new place we come out pretty much on par for what is remaining overall. Thoughts? I know I can probably invest the difference and come out ahead in the long run, but being debt free faster calls to me...
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If you port your mortgage do all the conditions stay the same? Maybe that’s an option for you
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Can’t port a variable.. TD will let you pay the penalty and then reimburse it when you get the new one (I’m fighting them on rates now)
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