Under what specific conditions can a borrower re-borrow prepaid funds from a Sagen-insured mortgage?
Re-borrowing prepaid funds is permitted on Sagen-insured mortgages without incurring additional mortgage insurance premiums, provided certain criteria are met .
This allows borrowers to tap into previously paid principal under qualifying circumstances.
Key Points
Re-borrowing prepaid mortgage funds isn't meant to help if you're struggling to make payments.
To re-borrow, your mortgage needs to be in good standing, with no late payments recently.
Make sure your property taxes are completely paid and up-to-date before you re-borrow.
The total amount you owe, including what you re-borrow, can't be more than your original mortgage amount based on your initial payment schedule.
If someone else takes over your mortgage, they can't access any of the extra payments you made.
Technical Research Verification
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Related Questions
How does the stress test differ for fixed vs. variable in 2026?
Both are stress-tested at the higher of the benchmark (5.25%) or the contract rate + 2%.
Why are 3-year fixed rates dominating the 2026 market?
Borrowers are hesitant to lock in for 5 years at current levels, but find 1-2 year rates too expensive.
Fixed vs. Variable Comparison Table
Fixed locks a 5-year rate with IRD penalty risk; variable floats with prime and typically caps break fees at 3 months interest.
What is the 'IRD' penalty risk for 5-year fixed borrowers?
The Interest Rate Differential (IRD) can cost tens of thousands if you break a fixed mortgage when market rates have dropped.