Right now Variable P -0.65% which is 3.30% today (Maturity date December 2021). Lender offers Fixed 3.75% for next 5 years. (Maturity date November 2023).CdnRealEstateGuy wrote: ↑Oct 24th, 2018 11:13 pmI still like variable, but I'm have a high risk tolerance.
How much is the property worth today (roughly)?
Around 700k
I can complete understand your frustration and things don't always make the most sense in this industry. You would think if there is that much equity, then where is the risk to the lender, right? The problem is, everything needs to qualify on income these days. There used to be programs where as long as you had 35% equity, income didn't matter. Those were all eliminated earlier this year. Everything has to qualify on income unfortunately.dazz wrote: ↑Oct 24th, 2018 10:17 pmElder family member raise the following question today.
Why to get a HELOC, you need to verify your income and have appropriate income. I thought the whole point of HELOCs is to get cash with your property as collateral??
Example: property value 600K+. Mortgage left $80K out of original $270K amount. This family wants to take 150-200K HELOC yet their bank says their family income of $36,000( 1 person working as self employed and other is not working until next summer) is not enough for that amount or even close to it. Is that normal, as it makes no sense considering almost paid off mortgage with over 500K in equity?!!
Your definitely going to want to get out of your current mortgage for sure. Many are looking at converting to fixed rate mortgages, and if ever there was a time to do so, now is the time. Given your situation, the lowest 5 year fixed is 3.39%. If I factor in a penalty of $3,200, which should be fairly close (including discharge fee), you'll save $2,548.95 with 3.39% vs. the 3.75% your current lender is offering you.
How much is the property tax? Have you spoke to a bank or a broker yet to find out how much you will qualify for? To even have a chance at a $500,000 mortgage, you cannot have any debt and property tax cannot exceed $5,000. A 30 year amortization would be required and you will not qualify for the lowest rates posted on this board. So whether it's $999.999 or $1,000,000, it's irrelevant. In most cases, under a million would give you a lower rate, but not if you need to go to a 30 year amortization.
My lender can approve based on equity and doesn’t factor income. If they have some savings and investments they can get approved just by their net worth and assets.dazz wrote: ↑Oct 24th, 2018 10:17 pmElder family member raise the following question today.
Why to get a HELOC, you need to verify your income and have appropriate income. I thought the whole point of HELOCs is to get cash with your property as collateral??
Example: property value 600K+. Mortgage left $80K out of original $270K amount. This family wants to take 150-200K HELOC yet their bank says their family income of $36,000( 1 person working as self employed and other is not working until next summer) is not enough for that amount or even close to it. Is that normal, as it makes no sense considering almost paid off mortgage with over 500K in equity?!!
If you can find it your penalty and can qualify for a heloc I can probably do 3.44-3.49% on a 5 year fixed rate with 1500-2500$ cash back.
If you can qualify for a heloc I can probably do 3.44-3.49% on a 5 year fixed rate with 1500-2500$ Cash back to help pay for penalties and transfer feesmparker2 wrote: ↑Oct 25th, 2018 11:15 amHello brokers. Have been mulling over whether to break mortgage early or stay the course. My variable (Prime minus 0.65) discount not is not great compared to what is available now, but not much time left in term (10 months). First mortgage and renewal both with MCAP and I've been very happy with them. 10% down payment at time of purchase, CMHC insured. Realize the break penalty around $3K, and weighing this vs. savings of better variable discount. First mortgage was fixed and not opposed to considering that as well. Given my situation and time left in term do you think it's best to ride it out until next August, and do you foresee variable discount remaining similar for some time?
How much is the mortgage owing? 378K
Roughly, what is the current market value of the property? 1.3 million (purchase price in 2009 was $667K)
Which city is the property located in? Downtown Toronto
Is the property owner-occupied or a rental? Owner occupied/principal residence. House. Freehold.
Who is your current lender? MCAP
Do you have a HELOC tied to the mortgage? No
Is the mortgage CMHC insured? Yes
When did you buy the property? 09/2009
When is your renewal date? 08/2019
Sent you a private message!tzoanca wrote: ↑Oct 25th, 2018 11:53 amLooking for renewal rates for early January - 3 year fixed or 5 year fixed
Here is the info:
- House value - 1.5 mil (estimate - purchased in 2016 for 1.2)
- Remaining principal 630k
- 25 years amortization
- House hold income - 200k
- Excellent credit score >850
- Regular mortgage (not collateral mortgage)
mparker2 wrote: ↑Oct 25th, 2018 11:15 amHello brokers. Have been mulling over whether to break mortgage early or stay the course. My variable (Prime minus 0.65) discount not is not great compared to what is available now, but not much time left in term (10 months). First mortgage and renewal both with MCAP and I've been very happy with them. 10% down payment at time of purchase, CMHC insured. Realize the break penalty around $3K, and weighing this vs. savings of better variable discount. First mortgage was fixed and not opposed to considering that as well. Given my situation and time left in term do you think it's best to ride it out until next August, and do you foresee variable discount remaining similar for some time?
How much is the mortgage owing? 378K
Roughly, what is the current market value of the property? 1.3 million (purchase price in 2009 was $667K)
Which city is the property located in? Downtown Toronto
Is the property owner-occupied or a rental? Owner occupied/principal residence. House. Freehold.
Who is your current lender? MCAP
Do you have a HELOC tied to the mortgage? No
Is the mortgage CMHC insured? Yes
When did you buy the property? 09/2009
When is your renewal date? 08/2019
