Refinance, Renew or Transfer
Refinance to 80% of Value
For home owners who want to borrow up to 80% of your property’s value! Mortgage loan insurance is not required unless loan amount exceeds 80% of current appraised value.
Acceptable loan purposes:
- Better Rates: Renegotiate better mortgage rates and pay off high interest debts.
- Cash Equity: May be used for investment purposes and / or personal spending.
- Debt Consolidation: Pay off high interest credit cards and other debts.
- Renovations: Home improvements, and repairs.
General Guidelines
- Maximum Loan Amount: Must not exceed 80% of the current appraised value of your home. If you want to borrow more than 80%, you will be approved for and insured mortgage with CMHC, Genworth or AIG.
- Appraisal: Your property must be approved by the lender.
Sliding scale
- Many lenders apply a sliding scale when property values are above a value. This is applicable when purchasing luxury homes and condominiums with high end price tags. The sliding scale will limit the maximum loan amount approved and it is calculated differently by each lender.
- Here is an example on a home valued at $2,000,000: Borrower wants to refinance to 80% of the value. They are applying for a loan amount of $1,600,000. However even though the borrower may qualify to service this loan amount, the lender may “scale back” the loan as follows. They may calculate only 80% of the first $750K and only 50% of the balance, so the new loan amount would be scaled back to: $1,225,000. The new loan to value is 61%, leaving 39% equity in the home rather than the 20%. This lowers the risk for the lender, in the event real estate values go down. In smaller urban and rural areas the scale back may be even more conservative.
Cost to Refinance
- Appraisal: For a standard home, townhouse, or condominium approx. $275.00
- Penalty: If you have an existing mortgage you will need to email or fax us your most recent mortgage statement. Your existing lender may charge you a penalty to pay off your mortgage. Generally it is a 3 month interest penalty, but may also be calculated as an interest rate differential whichever is greater.
- Discharge Fee / Administration Fee: If you have an existing mortgage you may be charged a discharge fee generally it will be $75.00 ‐ $250.00
- Legal Costs: For legal quotes pertaining to your specific transaction please contact a lawyer or notary for a quote. We will provide you with a list of lender approved lawyers / Notaries. Legal fees will range from approximately $500.00 – $1000.00
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