mortgage renewals -as of Sep 2012

[kir]

Has the rules for mortgage renewals change recently, where the 25 year amortization is the only option?



I just did one with Scotia, and the term has to be 25 years. Previously, it was 40 years for me.

I thought the amortization would be grandfathered, or stay the same.





Kir.

 

[RobMacdonald]

You should challenge that! if you had a 40 year mortgage and 5 years has past, you are able to renew at 35 years provided your are not making any changes to the mortgage. If you ask to increase the mortgage, then a max 25 year amortization would apply.



If you don't get the answer you are looking for, considering transferring the mortgage to another lender. I just did that for one client, and the other lender kept the same amortization in place at 32 years. Straight transfer, no new money, 87% ltv on a rental property.

 

[kir]

Thanks, I think I will challenge this...I have about a week before the current 5 year term ends.



Kir.

 

[Thomas Beyer]

[quote user=RobMacdonald]If you ask to increase the mortgage, then a max 25 year amortization would apply.
Why ?



I thought only on CMHC mortgages ?



Banks are free to do ANY amortization on non-CMHC mortgages, say 75 years or 43 if they want to, no ?

 

[mortgageman]

Correct, he can go to whatever the maximum amortization is for a non-insured mortgage at his current lender or transfer the mortgage to a different lender.

 

[kir]

I was able to do a renewal with a 35 year term (just did it over the lunch break at work with little difficulty). One Scotia Bank manager called me and confirmed it.



Prior to this, I just spoke to a "Senior Personal Banking Officer" who renewed with payments calculated using 25 year amortization.



Either option is good since the rate is low, but 35 year is better for my cashflow...so another happy day for me.