Personal Finance

Nervous About New Mortgage...

  • Last Updated:
  • Feb 22nd, 2010 3:27 pm
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[OP]
Newbie
Feb 19, 2010
6 posts
Ontario

Nervous About New Mortgage...

We currently have a mortgage with TD. It expires in July 2011. We've just purchased a new house, and the new mortgage will be less than our current one. We just met with our banker and he is recommending we pay the penalty to get out of our current mortgage so that we can take advantage of the current (much-lower) interest rates. Our DSR is 24%.

My concern is that I just discovered in June Nordon placed a claim on my credit file for an old defaulted student loan from 1996! I am disputing the claim with Equifax (should have been posted lonnnnng ago and would now have been cleared from my file), but in the meantime my credit score has taken a big hit and is now 635.

My wife's credit score is 680. We have a combined annual income of $166,000. Should we be worried about not being approved by TD or CMHC? The bank said everything looked great from their end, but I'm still nervous...
5 replies
Deal Addict
Feb 4, 2008
3132 posts
175 upvotes
You will be ok, but the bank may ask you to pay the debt out. Not sure on TD's policy.

Your debt service is low, perhaps your wife would qualify on her own and your credit would not be an issue at all.
www.mortgagecalculatortoolkit.com

Do your mortgage math correctly!
Deal Addict
Jun 29, 2009
2307 posts
211 upvotes
Toronto
sslinn wrote:
Feb 20th, 2010 7:26 pm
perhaps your wife would qualify on her own and your credit would not be an issue at all.
as far as I know when you are married that they will always consider the combined score / credit report. I might be mistaken though.
[OP]
Newbie
Feb 19, 2010
6 posts
Ontario
Thanks for the replies. I still haven't heard back yet. I'm hoping that the worst case scenario would be that they let us just keep our current mortgage (still 15 months left on it) and apply it to the new property (not ideal though, as interest rates are now 2 points lower than what we're currently being charged). Although our payments on the new mortgage would be substantially lower due to the lower interest rate and we'll be paying out any debt we're currently carrying from the proceeds of the sale. Hopefully CMHC will consider our excellent payment history with TD and that we're already customers with a CMHC insured mortgage.
[OP]
Newbie
Feb 19, 2010
6 posts
Ontario
Just got the approval! Looks like I had nothing to worry about after all. Phew! :D

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