Real Estate

Mortgage refinance debt calculations

  • Last Updated:
  • Jul 10th, 2020 3:00 pm
Mar 29, 2019
19 posts

Mortgage refinance debt calculations

Quick question for all mortgage experts out there -

If I am refinancing my current mortgage to consolidate debt (say 45k, $30 in Loc/CC, and student loans). my home value is 700k and balance on mortgage is 500k, therefore 80% of value = 560k, and I can get 60k out.

When they calculate my affordability and do the GDS TDS ratios, would they factor my future situation for GDS (560k mortgage payment/month + tax + heat) and TDS (GDS + debt ($0 now)). Can someone confirm?

Does the bank pay the cards or they give me the cash to pay it then? Looking at RBC and CIBC.

2 replies
Deal Addict
User avatar
Sep 19, 2013
2612 posts
You can get better answer if you put this in real estate forum I believe.
In the beginning the Universe was created. This has made a lot of people very angry and been widely regarded as a bad move. -- Douglas Adams
Jul 10, 2020
2 posts
@ss2020 I'm just seeing this now as I've just set up notifications. I hope you've recieved an answer to this question already.

To answer your question, yes your future situation is factored in when determining whether you will be approved for your consolidation refinance.