HawthorneVillager.com

i was talking about this at work today and someone was asking about 'my mortgage is for 35 years now - and i just moved in - what happens in 5 years when i have to reapply to renew?'

does that get taken into account or when you reapply you are automatically taken to a 25 year amortization period - would it be possible that you could be denied?

sometimes it is just better to listen to conversations and keep comments to yourself then get into 'money matters' at work.

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[url=http://www.TickerFactory.com/]

A few of the brokers have already answered this...if you are renewing, you can stick to your original ammortization. So if in 5 years you renew, and you had a 35 year ammortization, you will have 30 years on your renewal.

thanks so much burr.. i will pass that on .. in private- don't want to start a whole new discussion.

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[url=http://www.TickerFactory.com/]

I am so confused, I am getting different stories.

One broker said if we get an actual approval (not pre-approval)before July 9 we are good. Called a big bank to check this- they said no, house has to close by July 9.

Feels like it's not really clear...

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to provide some clarity:

- new applications for high ratio mortgages submit before Juy 9th will be under the existing guidelines - the new application would have to be for an offer to purchase or for a refinance (pre-approvals would not qualify)
- I can only speak for TD but it looks like we are still reviewing our guidelines for conventional mortgages and I will update once I have more information

So, in summary, if you enter into a purchase agreement or apply for a refinance before July 9th you can take advantage of existing rules....after the 9th you are looking at 80% max for a refinance and a max of 25 yr amortization for insured mortgages (purchase or refinance transaction).

Hope that helps..

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Christina Jackson
Mobile Mortgage Specialist
TD Canada Trust
T: 647 292 7597
F: 905 377 1634
P: 866 767 5446
email: christina.jackson@td.com

I appreciate the clarification Christina. I guess there are a lot of mortgage persons who haven't figured it out either. The big bank I called said there is no way unless we close in two weeks.

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No problem....it often takes the banks time to react and adjust. We should have more details soon.

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Christina Jackson
Mobile Mortgage Specialist
TD Canada Trust
T: 647 292 7597
F: 905 377 1634
P: 866 767 5446
email: christina.jackson@td.com

so in 5 years the 35 year mortgage will not be honored and it will switch to a 25 year amortization period.... ugh - they can figure it out when their time comes.... its years away after all......

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[url=http://www.TickerFactory.com/]

If a client has a 35 (or possibly even 40) yr amortization they will not be effected......in 5 yrs they would have 30 yrs (or 35) yrs remaining. They will only be effected if they refinance the mortgage.....they can even transfer to another lender and it will move over as is.

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Christina Jackson
Mobile Mortgage Specialist
TD Canada Trust
T: 647 292 7597
F: 905 377 1634
P: 866 767 5446
email: christina.jackson@td.com

I had a client asking the same questions today, if you are firm by july 9/12, then you are fine under current regulation, a pre approval is not the same and anyone must clarify with their lender if they are. The government brought all this down very quickly and caught us all off guard. For ammortization Christina did clarify it quite well. Just remember is you have a current mortgage there are no changes unless you choose to re finance, then it is 80% of value as opposed to current 85%. ( after july 9 ).

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F. Inzirillo
Northwood Mortage
905 699 6115

As long as the mortgage is submitted an approved before July 9th, the closing can be after that date as long as it is before December 31st, 2012.

Make sure you DON"T wait until the last minute to submit however, as the last two times CMHC made these changes, they started turning down applications early, even though they were within the the guidelines.

It is possible that the bank you were speaking to has implemented their own regulation requiring the mortgage to close by July 9th. It is also entirely possible that the employee you were speaking with has misinterpreted the regulation leading him/her to inaccurately believe that it must close by July 9th.

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Paul Meredith
Mortgage Broker
CityCan Financial (est 1976)
416-409-8009
www.citycan.com
paulm@citycan.com
Lic#10532

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