Mortgage Refinance FAQs
When a refinance pays for itself, how lenders calculate break penalties on fixed terms, when to extend amortization, and how to structure equity-takeout through refinance vs. HELOC vs. second mortgage.
12 FAQs in this category.
How do GDS and TDS ratios affect my refinancing options?
GDS (Gross Debt Service) and TDS (Total Debt Service) ratios are critical affordability indicators that financial institutions use to determine your eligibility for refinancing.
What is the Loan-to-Value (LTV) ratio, and how does it impact my ability to refinance?
The Loan-to-Value (LTV) ratio plays a critical role in the refinancing process.
How does OSFI's Guideline B-20 affect refinancing?
OSFI's Guideline B-20 establishes the benchmark for residential mortgage underwriting practices that federally regulated financial institutions (FRFIs) must adhere to.
What is a 'straight switch,' and how does it impact refinancing at renewal?
A "straight switch" refers to the process of transferring an existing uninsured mortgage to a new institution when it's up for renewal, without increasing the remaining amortization period or the loan amount.
What Loan-to-Value (LTV) Ratio is Right for Me?
The Loan-to-Value (LTV) ratio is a key metric lenders use to gauge risk.
How Do HELOCs Work Under Current Regulations?
Think of a HELOC (Home Equity Line of Credit) as a revolving credit product, secured by your home.
What's the Impact of Property Valuation on Borrowing?
Property valuation is the cornerstone of mortgage lending.
How Does Mortgage Insurance Affect My Choices?
Mortgage insurance is a key player in the Canadian mortgage world, especially for those with down payments below 20%.
How much equity can you access for renovations?
The equity available for renovations depends on the Loan-to-Value (LTV) ratio and CMHC guidelines.
What are the key qualification criteria for a CMHC-insured refinance?
To qualify for a CMHC-insured refinance loan, you need to meet specific creditworthiness and debt service requirements.
How do advancing options work with CMHC for renovation projects?
CMHC offers different advancing options based on the renovation scope.
How does OSFI impact LTV and FRFI loan decisions?
OSFI (Office of the Superintendent of Financial Institutions) sets guidelines for Financial Institutions (FRFIs) concerning mortgage underwriting, especially LTV ratios.