Personal Finance

Thinking about mortgage renewal - financial situation changed

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  • Nov 24th, 2013 12:23 pm
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[OP]
Member
Oct 15, 2010
306 posts
44 upvotes

Thinking about mortgage renewal - financial situation changed

Currently have TD mortgage joint with a family member. This was in 2010 (prime-0.4).

At this time only I am working, I expect this to stay the same come renewal time mid-2014. Although I am making more now, the income is around 10K less than it was when we bought the house.

It is a 35 year amortization but we increased the payments for the majority of the term, at the current rate 25 years remain.

Has anyone been in a similar situation before? What happened? Can TD refuse to renew due to the change in income? Will another bank do the same?

Thanks
5 replies
Sr. Member
Jan 19, 2009
893 posts
32 upvotes
there is no income verification come time for renewal, just keep your mouth shut and sign the renewal agreement
[OP]
Member
Oct 15, 2010
306 posts
44 upvotes
enter wrote:
Nov 23rd, 2013 10:48 pm
there is no income verification come time for renewal, just keep your mouth shut and sign the renewal agreement
I can do that. But if I want to shop around, banks would want to know that information, can't lie to them.
Member
User avatar
Mar 2, 2010
428 posts
37 upvotes
It doesn't matter if your income has changed... What matters is qualification based on income. Do you not quality for a mortgage for the remaining balance of the mortgage for a 25-year or 30-year amortization period, based on your income? If you do not, then just renew with the current lender. If you do qualify, then you are worrying too much.

I don't believe 35-year terms are available anymore, so use some quick online calculators and see if you qualify for 25 or 30 year period.
Sr. Member
Jan 19, 2009
893 posts
32 upvotes
element0 wrote:
Nov 23rd, 2013 11:35 pm
I can do that. But if I want to shop around, banks would want to know that information, can't lie to them.
yeah it only applies to the current lender (TD), so you know you can always shop around and try to get a better offer at other banks and try to qualify, if you can`t you have peace of mind that you can just renew with TD no questions asked....TD Should be able to match the rates other lenders offer anyways so try that route first

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