Renewal Time

[sandra]

Hi all, My properties are not up for renewal yet, but I have few questions regard refinancing time to help my understanding about RE investing.
* Do existing banks automomatically renew mortgages when time is up?
* In what case banks refuse to renew?
* Do all mortgages requires appraisal to renew?
* If you find different banks offer better rate and term and you decide to switch, Do new bank require appraisal to renew?

* In case bank refuse to renew, for example you lose job or quit job, don`t have enough income to support mortgages. what should you do? What would happen if appraisal come back less than value of property?

Thanks for all responses.

Sandra

 

[housingrental]

I`m not an expert on mortgage`s. Don`t take any of this as professional advice or 100% accurate but as likely general info. If a mortgage broker posts anything that contradicts my thoughts defer to their opinion.

1) Most do. Rarely some don`t. More likely if a) Bank has gotten out of offering loans in that property type (ie in a certain province, for student housing, etc..) or b) Property value has fallen significantly.

2) You`ll have to find another lender to provide you a mortgage. And if you don`t they can start foreclosure.

3) Not them I`m aware of. I`m guessing this could be possible though.

4) Likely.

5) Talk with a mortgage broker on finding a different lender, or one providing a second mortgage for the difference of lower loan amount.



QUOTE (sandra @ Jan 30 2010, 08:20 PM) Hi all, My properties are not up for renewal yet, but I have few questions regard refinancing time to help my understanding about RE investing.
* Do existing banks automomatically renew mortgages when time is up?
* In what case banks refuse to renew?
* Do all mortgages requires appraisal to renew?
* If you find different banks offer better rate and term and you decide to switch, Do new bank require appraisal to renew?

* In case bank refuse to renew, for example you lose job or quit job, don`t have enough income to support mortgages. what should you do? What would happen if appraisal come back less than value of property?

Thanks for all responses.

Sandra

 

[kir]

Hi,
I just did a renewal with one rental from TD.

They usually send you a renewal notice with several options.
Usually they are pretty competitive.

It might not be better to switch to another bank due to fees incurred while trying to get a new loan from a different bank.
Plus you have to go through the application process all over again, if you don`t renew with the same bank. It depends.
But any good mortgage broker would tell you this too.

In the case of TD, if you don`t sign anything with them when the renewal is up for renewal, mortage is considered in default.
This was what the TD mortgage specialist told me.

Kir.

 

[sandra]

QUOTE (kir @ Jan 31 2010, 04:47 PM) Hi,
I just did a renewal with one rental from TD.

They usually send you a renewal notice with several options.
Usually they are pretty competitive.

It might not be better to switch to another bank due to fees incurred while trying to get a new loan from a different bank.
Plus you have to go through the application process all over again, if you don`t renew with the same bank. It depends.
But any good mortgage broker would tell you this too.

In the case of TD, if you don`t sign anything with them when the renewal is up for renewal, mortage is considered in default.
This was what the TD mortgage specialist told me.

Kir.

Hi Kir, Did the bank do an appraisal ? Does your property have any equity in it ?
Sandra

 

[kir]

HI,

In my case, I simply renew by the phone. It was done and over with in 5 minutes.
No appraisal needed...but if you go somewhere else, they might do an appraisal.

I renewed many times with different lenders, and each time it was painless...and they don`t question equity.
Having said that, I typically put down 20% and my LTV is almost 55%...maybe 60-65% now due to some declines in equity in 2008/09.



Kir.