Hello,
A friend of mine tried to refinance an apartment building mortgage he has with one of the big banks in Canada. His mortgage term ended so was time to renew or refinance without penalty.
He was unable to refinance with them as their appraised value was not high enough.
So he asked just to renew the mortgage with 3 years term.
He is surprised their renewal rate is now higher than the refinance rate by 0.5%(!)
The banker told him he is surprised too and just learned this from his Multi-unit department that indeed straight renewal rates are higher than refinance rates.
Is this correct, are you aware of the same?
Thank you
A friend of mine tried to refinance an apartment building mortgage he has with one of the big banks in Canada. His mortgage term ended so was time to renew or refinance without penalty.
He was unable to refinance with them as their appraised value was not high enough.
So he asked just to renew the mortgage with 3 years term.
He is surprised their renewal rate is now higher than the refinance rate by 0.5%(!)
The banker told him he is surprised too and just learned this from his Multi-unit department that indeed straight renewal rates are higher than refinance rates.
Is this correct, are you aware of the same?
Thank you