Hello,
My friend has an apartment building mortgage.
If I understand correctly, the bank should send his new options to choose from - different terms and their interest rates, about 2 months before renewal/before the end of the current term.
If my friend wants to refinance instead of simply renewing (and obviously tells the bank that), is there any financing risk not being able to renew the mortgage at all?
Or usually the worse thing that can happen is just not being approved for a refinance?
I am asking as for a simply mortgage renewal the bank does not need much information from you on you or the building, especially if you have good payment history with them.
However, to approve a refinance they want to know everything about you and the building again - NOA, Rent Roll, financial statements etc.
(What if you were an employee earning 150K for example when applying and being approved 5 years ago when purchasing the building, and now you only make 50K as you are self employed paying yourself dividend. If I understand correctly, your current income is information the bank does not care much about to just renew you. but will ask for that to refinance you)
Thank you
My friend has an apartment building mortgage.
If I understand correctly, the bank should send his new options to choose from - different terms and their interest rates, about 2 months before renewal/before the end of the current term.
If my friend wants to refinance instead of simply renewing (and obviously tells the bank that), is there any financing risk not being able to renew the mortgage at all?
Or usually the worse thing that can happen is just not being approved for a refinance?
I am asking as for a simply mortgage renewal the bank does not need much information from you on you or the building, especially if you have good payment history with them.
However, to approve a refinance they want to know everything about you and the building again - NOA, Rent Roll, financial statements etc.
(What if you were an employee earning 150K for example when applying and being approved 5 years ago when purchasing the building, and now you only make 50K as you are self employed paying yourself dividend. If I understand correctly, your current income is information the bank does not care much about to just renew you. but will ask for that to refinance you)
Thank you