Sounds good. I have just received notification that Scotiabank is limiting the amount of rental mortgages per client. I suspect that most lenders will look to do the same.
It can, but if the current mortgage has a higher rate and/or shorter amortization the new refinance mortgage might be able to be set up with a lower payment.
Hi Kevin, i just bought a house two years ago in a 3.2 interest rate. would it be a smart move for me if i will refinance it this year 2021 now that the interest rate is a little bit lower?
Hi Kevin, have some of the rules been updated since you recorded this video? I’m asking because in ScotiaBank they told me that it’s only possible to retake up to 65% of the current property value vs 80% as you’ve mentioned. Is it a new rule in all Canadian banks?
Nothing has changed with respect to refinancing for standard mortgages. If you are looking for a secured line of credit, yes those have been limited recently.
It depends on what you are going to use the funds for. Debt consolidation can save thousands in interest. I'm not always a fan of rolling vehicle debt into your mortgage.
Yes. The maximum amount of Secured Line of Credit (HELOC) is 65% of current home value. There are also mortgage products that you can have a mix of standard mortgage and secured line of credit up to 80% of current home value.
Most every lender verifies income for a mortgage application no matter the loan to value. Only very high risk private lenders will overlook income, for a price.
Hi, Kevin How you calculate payment to monthly or biweekly if my balance mortgage _109000 with 10 years amortization for variable rate of 1.29% for 3-5 years
Yes for sure. I'm not an accountant but it's my understanding that you could write of the interest on that portion of your borrowing (check with your accountant though).
Awesome video. Question that I have is after the bank sends you your new mortgage offer for renewal and you sign it and send it back what happens after? Does the bank mail you back your new mortgage agreement and if so how long? Or does the bank call you and tell you that the agreement is good to go?
First of all, just signing the renewal and sending it back to your current lender is not really a good idea. The rates that you are offered are almost always higher than what a mortgage broker like myself could get for you. If you did do that, every bank is different as to letting you know that the renewal has been processed. Make sure to call before the renewal date to make sure that it's done.
I have a question for you. I own my place and I'm.not longer employed and is out of a job but I have tenants that are living at the home and my 5-year term is coming up. Wo I still be approved to continue my mortgage with the bank
Yes it is. However, either all parties remain on the new mortgage or if the one party qualifies on their own it will be just in their name. If the joint owners are married and separating then a full legal separation agreement will need to be provided to the new lender
should i borrow to renovate my home and then re-finance to access the most cash outta the home then repay the loan and any other debts i have due to the low rates, would that be a wise decision?
That could work but keep in mind that in Canada you are only allowed to refinance your property for up to 80% of it's value. Depending on the value and how much your current mortgage is, there may not be any room to be able to consolidate the loan(s).
Hey Erwin. Refinancing could be a really good idea. However, if you put less that 15% down when you purchased, you may not have much equity to leverage. You can only refinance for up to 80% of the current property value.
@@KevinCarlsonMortgages thank you kevin for your immediate reply. I only put 5% down payment on it when we purchased the house. But we did some renovations on the house we spent at least 15k on it when we did the renovations.
Great content! Quick question: I have a rental property mortgage due for renewal. The mortgage that is left is small compared to its value (~25%). I'm looking to refinance and increase the mortgage up to 50% of its value in order to purchase a primary residence. I'm aiming to buy the property in the next 12 months. Should I refinance now with my mortgage renewal or later?
You may want to consider a collateral mortgage refinance where you obtain a mortgage for the amount you need now and then a secured line of credit (SLOC) for additional borrowing down the road. The SLOC doesn't cost you anything unless you use it. I can certainly assist you with that. Please contact me through my website listed in the description.
Thanks for the info. Thumbs up for the vid. Generally what are the costs of refinancing? current mortgage of 200,000 and looking to get a lower rate but keep payments the same. Would this be a good idea if I'm thinking of moving in 1 year. Currently fixed 5 yr 3.19 and in yr 2 of the term. Rate hub shows 2.69. If fees are province dependent do you know of a website?
If you are going to move within a year that it's not worth the expense. I don't recommend online mortgage services like the one you mentioned. Nothing more than call centers where the service level and experience of those working there is highly suspect.
@@KevinCarlsonMortgages Thanks for the response. I agree more is done by reps if you don't go through a broker, I do the window shopping on rate hub. I used First Nationals advertised. Thanks I will probably wait it out. Nice weather in Alberta this time of year :)
Refinancing is most often processed with a title closing service. In Alberta the fees for that are $331.88 plus $1.50 for every $5,000.00 of mortgage. There may be other costs for remote signing and additional titles to your property.
Hi Kevin. I’m quite new at this I wanted to ask, is it possible to refinance a property I live in for purposes of buying another property and even though my home was 100% mortgaged by the bank without any deposit paid to it?
Hey Elaine. Yes you can refinance your current property to access down payment funds for the next one. The maximum new mortgage allowed is 80% of the current property value. For example, if the current value is $300,000.00, the maximum refinance mortgage is $240,000.00. If you owe more than that on your current mortgage then there is no extra funds to access. If you owe less than that, then $240k minus what you owe (plus any penalty) is the equity take out funds that you can access.
Last question Kevin, LoL. If a mortgage is refinanced successfully, and I decide to use that money to get another property, and then decide again to get the 3rd property what are the chances of getting a new mortgage? Will the chances be affected by the refinancing done to get the second property? Or it will solely depend on my credit score like when I got the first mortgage?
Good questions@@eledramatic . Being able to get the next mortgage while keeping your current one comes down to debt service ratio calculations. The rental income from the previously purchased properties does not often offset all of the carrying costs for each property. The more rentals you have, the more your own income will need to be. Banks also do not like to see people buying too many properties too quickly.
@@KevinCarlsonMortgages Thanks Kevin. Oh I see. Thank you for sharing your knowledge. Truly appreciated. This is the very last question 🙈I promise. Lol. After refinancing a property, does it mean the equity taken out will be added to the overall debt plus interest of refinancing? //Does refinancing incur interest?
I can not believe mortgage rates right now, 5yrs ago was at 2.59, looking at renewing at 1.56%. Unreal. I can't get much of an interest rate on it anywhere else (2.6 +), it is a second property, why would this be??
Hi I have renewed my mortgage 2 months ago i didn't know about refinance I want to cash out 50k. My remaining mortgage 375k my home value more than 800k. I talked to bank they said we can do 2nd mortgage on 50k. Is it ok to do it ? Kindly advise.
Hi Kevin , I have an investment property here in Canada , bought at 403500 and now appraised at 495k so how much equity I can use towards another property please ? I understand I can only take 80%. Thanks
You can refinance for up to 80% of the current value of the property of $495k. That would give you a new mortgage of up to $396k less the amount owed on the current mortgage.
Thank you for your very informative session. I co-own a house with 70:30 investment currently and ongoing. My partner likes to end the co-ownership and now I need to arrange his 30% share of investment profit even though we are not selling it. I am not sure, my plan is to theoretically agree on providing 30% of current market price of the property and then refinance that amount to pay my partner that share so that I will be the sole owner now. Is that a correct assumption and if yes, is this refinancing possible? Thank you so much. Learnt a lot from your videos.
Yes, refinancing is possible. The maximum new refinance mortgage would still be limited to no more than 80% of the current appraised value of the property. For example; if the property is valued at $400,000.00, the maximum new mortgage would be $320,000.00. If you owe that or more on your current mortgage you would not be able to get access to any additional refinance funds to pay out your investment partner.
Hi , I have a private mortgage in which I made 300k down with rate of 5.5 percent and 2 years term. I had a mortgage approved from td with my brother on the application who is on work permit ,but after signing everything I got to know that he has to be on title .If he will be on title ,I have to pay NRST 15 percent which was 100k more ,which I didnt have.So ended up using private lender This is my principal residence. At present ,I am on title with private lender and my brother Permanent residency file in progress My question: Can I move to bank with my brother on mortgage application once he gets PR ? Do I need to add him on title ? Will it trigger capital gain tax since I l add him on our principal residence? Also,How would I show the down payment as I already put 300k as down while purchase using a private lender ? Please help
This is too complex to answer here. I am not working with clients outside Saskatchewan at this time. I suggest that you contact a highly experienced mortgage broker near you to assist.
it looks the money is free from equity from your video. But the money is to be paid back with interest, which is higher than mortgage interest rate. in other words it is loan. not free money unless you sale the house.
I am confused by your comments. I do not state that the money is free. Of course it has to be paid back. Why would the interest rate be higher on the equity portion of a mortgage refinance? Please explain.
I'm not so sure refi to do renovations or fold in credit card debt is the best idea. Credit card debt is kind of like a drug addict... pretty likely they're going to find another hit... clear the debt, rack it right up again. Think of it this way... would you go to the bank and say yah, id like to put a $1000 lien on my house to buy a TV...
Wow, thank you for taking the time to make this video , it was very clear to understand , cheers
Thanks Kevin for a walkthrough of refinancing mortgage and various options and considerations. 👌
Hi Kevin,
Thank you for helping a lot of people to be more educated with mortgage.
Very informative Kevin! Thanks for the video
Superb , simple and best explanation. I made best use of my time
Straight to the point.. very few does this way ..
Glad you like the content.
Thank you for such a simplified version of explanation with examples.
You are welcome. Very glad to hear people are getting good information from my content.
Kevin really well explained
Thank you for the info. After the Covid-19 crisis, I am planning to refinance one of my property to have enough cash for another 4 doors construction
Sounds good. I have just received notification that Scotiabank is limiting the amount of rental mortgages per client. I suspect that most lenders will look to do the same.
You got crushed too bad
Very useful information for interested people
Thanks
Nice video, can you please create video on mortgage port increase port decrease , equity take out, add covenant release covenant as well
Thank you!
This is very well explained
Great video, packed with information. Thanks!
I'm glad you found it helpful.
Very clearly explained. Thanks Kevin!
Very welcome
great info thanks
When refinancing a mortgage and gaining access to more cash equity, does the monthly mortgage payment also increase as well?
It can, but if the current mortgage has a higher rate and/or shorter amortization the new refinance mortgage might be able to be set up with a lower payment.
Thank you for you short and sweet explanation.
clear and simple. awesome job
Thank you!
Hi Kevin,
i just bought a house two years ago in a 3.2 interest rate. would it be a smart move for me if i will refinance it this year 2021 now that the interest rate is a little bit lower?
Thanks for sharing
this is was very helpful!
Hi Kevin, have some of the rules been updated since you recorded this video? I’m asking because in ScotiaBank they told me that it’s only possible to retake up to 65% of the current property value vs 80% as you’ve mentioned. Is it a new rule in all Canadian banks?
Nothing has changed with respect to refinancing for standard mortgages. If you are looking for a secured line of credit, yes those have been limited recently.
Hi do you have any information about pros and cons of mortgage refinancing? Thanks
It depends on what you are going to use the funds for. Debt consolidation can save thousands in interest. I'm not always a fan of rolling vehicle debt into your mortgage.
Hi kevin , is it possible to use the equity of refinance to buy another house?
Yes it is. The maximum mortgage amount for the refinance is still 80% of its current value.
Great info, thank you! Is it possible to get a heloc that you would only payback interest on?
Yes. The maximum amount of Secured Line of Credit (HELOC) is 65% of current home value. There are also mortgage products that you can have a mix of standard mortgage and secured line of credit up to 80% of current home value.
Can i refinance and use the cash i get to buy 2nd house?
Yes for sure. That is a very common thing for clients to do.
Most every lender verifies income for a mortgage application no matter the loan to value. Only very high risk private lenders will overlook income, for a price.
Hi, Kevin How you calculate payment to monthly or biweekly if my balance mortgage
_109000 with 10 years amortization for variable rate of 1.29% for 3-5 years
Do you recommend refinancing to buy a secondary property for rental purposes?
Yes for sure. I'm not an accountant but it's my understanding that you could write of the interest on that portion of your borrowing (check with your accountant though).
Awesome video. Question that I have is after the bank sends you your new mortgage offer for renewal and you sign it and send it back what happens after? Does the bank mail you back your new mortgage agreement and if so how long? Or does the bank call you and tell you that the agreement is good to go?
First of all, just signing the renewal and sending it back to your current lender is not really a good idea. The rates that you are offered are almost always higher than what a mortgage broker like myself could get for you. If you did do that, every bank is different as to letting you know that the renewal has been processed. Make sure to call before the renewal date to make sure that it's done.
I have a question for you. I own my place and I'm.not longer employed and is out of a job but I have tenants that are living at the home and my 5-year term is coming up. Wo I still be approved to continue my mortgage with the bank
As long as you are current with your payments, yes you should be able to renew with the same bank
thank you for taking the time to reply, I appreciate it kindly. Hope you have a bless day!
You are very welcome
Is it possible to do a mortgage refinance when a property is under joint ownership?
Yes it is. However, either all parties remain on the new mortgage or if the one party qualifies on their own it will be just in their name. If the joint owners are married and separating then a full legal separation agreement will need to be provided to the new lender
@@KevinCarlsonMortgages Okay I see, thank you so much for this information. Really appreciate it!
How can I renewal my mortgage payments?
Please contact me. I would be happy to help you with that. My contact info is in the description below.
should i borrow to renovate my home and then re-finance to access the most cash outta the home then repay the loan and any other debts i have due to the low rates, would that be a wise decision?
That could work but keep in mind that in Canada you are only allowed to refinance your property for up to 80% of it's value. Depending on the value and how much your current mortgage is, there may not be any room to be able to consolidate the loan(s).
hi kevin,
and also do you think the bank will approved me. if i decide to refinance my house even if it is just bought the house two years ago?
Hey Erwin. Refinancing could be a really good idea. However, if you put less that 15% down when you purchased, you may not have much equity to leverage. You can only refinance for up to 80% of the current property value.
@@KevinCarlsonMortgages thank you kevin for your immediate reply. I only put 5% down payment on it when we purchased the house. But we did some renovations on the house we spent at least 15k on it when we did the renovations.
if i refinance my mortgage with the same interest rate, do i pay more interest over time?
If you refinance and increase the mortgage amount and leave the amortization the same, yes.
Great content!
Quick question: I have a rental property mortgage due for renewal. The mortgage that is left is small compared to its value (~25%). I'm looking to refinance and increase the mortgage up to 50% of its value in order to purchase a primary residence. I'm aiming to buy the property in the next 12 months. Should I refinance now with my mortgage renewal or later?
You may want to consider a collateral mortgage refinance where you obtain a mortgage for the amount you need now and then a secured line of credit (SLOC) for additional borrowing down the road. The SLOC doesn't cost you anything unless you use it. I can certainly assist you with that. Please contact me through my website listed in the description.
Thanks for the info. Thumbs up for the vid.
Generally what are the costs of refinancing? current mortgage of 200,000 and looking to get a lower rate but keep payments the same. Would this be a good idea if I'm thinking of moving in 1 year.
Currently fixed 5 yr 3.19 and in yr 2 of the term. Rate hub shows 2.69. If fees are province dependent do you know of a website?
If you are going to move within a year that it's not worth the expense. I don't recommend online mortgage services like the one you mentioned. Nothing more than call centers where the service level and experience of those working there is highly suspect.
@@KevinCarlsonMortgages Thanks for the response. I agree more is done by reps if you don't go through a broker, I do the window shopping on rate hub. I used First Nationals advertised.
Thanks I will probably wait it out.
Nice weather in Alberta this time of year :)
Refinancing is most often processed with a title closing service. In Alberta the fees for that are $331.88 plus $1.50 for every $5,000.00 of mortgage. There may be other costs for remote signing and additional titles to your property.
Hi Kevin. I’m quite new at this I wanted to ask, is it possible to refinance a property I live in for purposes of buying another property and even though my home was 100% mortgaged by the bank without any deposit paid to it?
Hey Elaine. Yes you can refinance your current property to access down payment funds for the next one. The maximum new mortgage allowed is 80% of the current property value. For example, if the current value is $300,000.00, the maximum refinance mortgage is $240,000.00. If you owe more than that on your current mortgage then there is no extra funds to access. If you owe less than that, then $240k minus what you owe (plus any penalty) is the equity take out funds that you can access.
@@KevinCarlsonMortgages
Thank you so much for this clarity. Now I know what to do for my next move.
Last question Kevin, LoL. If a mortgage is refinanced successfully, and I decide to use that money to get another property, and then decide again to get the 3rd property what are the chances of getting a new mortgage? Will the chances be affected by the refinancing done to get the second property? Or it will solely depend on my credit score like when I got the first mortgage?
Good questions@@eledramatic . Being able to get the next mortgage while keeping your current one comes down to debt service ratio calculations. The rental income from the previously purchased properties does not often offset all of the carrying costs for each property. The more rentals you have, the more your own income will need to be. Banks also do not like to see people buying too many properties too quickly.
@@KevinCarlsonMortgages Thanks Kevin. Oh I see. Thank you for sharing your knowledge. Truly appreciated. This is the very last question 🙈I promise. Lol. After refinancing a property, does it mean the equity taken out will be added to the overall debt plus interest of refinancing? //Does refinancing incur interest?
Since you are a mortgage broker how much interest fixed rate in the market right now for a renewal one?
It depends on some details of your current mortgage. Please contact me through my website and I will be able to provide a rate quote.
@@KevinCarlsonMortgages where is your location in Canada? I am from Alberta.
Regina, Saskatchewan
I can not believe mortgage rates right now, 5yrs ago was at 2.59, looking at renewing at 1.56%. Unreal. I can't get much of an interest rate on it anywhere else (2.6 +), it is a second property, why would this be??
are there taxes on money you get from a cash out refinance?
I am not a tax expert but there shouldn't be.
@@KevinCarlsonMortgages ok, thanks for the quick reply
how much will payments go up if i do cash out refinance?
For every $10,000.00 of extra mortgage funds, the payment would go up by at least $46.25 per month.
Hi I have renewed my mortgage 2 months ago i didn't know about refinance I want to cash out 50k. My remaining mortgage 375k my home value more than 800k. I talked to bank they said we can do 2nd mortgage on 50k. Is it ok to do it ? Kindly advise.
If you renewed your mortgage into a 5-year fixed and closed term then doing a second mortgage is definitely the way to go
@@KevinCarlsonMortgages
I did 4 years fixed closed term. Can i get amortization 20 years with current interest rate on 50k.
You should be able to get up to 25 years depending on your bank
@@KevinCarlsonMortgages
Thanks 🙏
Hi Kevin , I have an investment property here in Canada , bought at 403500 and now appraised at 495k so how much equity I can use towards another property please ? I understand I can only take 80%. Thanks
You can refinance for up to 80% of the current value of the property of $495k. That would give you a new mortgage of up to $396k less the amount owed on the current mortgage.
@@KevinCarlsonMortgages thank you
Thank you for your very informative session. I co-own a house with 70:30 investment currently and ongoing. My partner likes to end the co-ownership and now I need to arrange his 30% share of investment profit even though we are not selling it. I am not sure, my plan is to theoretically agree on providing 30% of current market price of the property and then refinance that amount to pay my partner that share so that I will be the sole owner now. Is that a correct assumption and if yes, is this refinancing possible?
Thank you so much. Learnt a lot from your videos.
Yes, refinancing is possible. The maximum new refinance mortgage would still be limited to no more than 80% of the current appraised value of the property. For example; if the property is valued at $400,000.00, the maximum new mortgage would be $320,000.00. If you owe that or more on your current mortgage you would not be able to get access to any additional refinance funds to pay out your investment partner.
Hi ,
I have a private mortgage in which I made 300k down with rate of 5.5 percent and 2 years term.
I had a mortgage approved from td with my brother on the application who is on work permit ,but after signing everything I got to know that he has to be on title .If he will be on title ,I have to pay NRST 15 percent which was 100k more ,which I didnt have.So ended up using private lender
This is my principal residence.
At present ,I am on title with private lender and my brother Permanent residency file in progress
My question:
Can I move to bank with my brother on mortgage application once he gets PR ?
Do I need to add him on title ?
Will it trigger capital gain tax since I l add him on our principal residence?
Also,How would I show the down payment as I already put 300k as down while purchase using a private lender ?
Please help
This is too complex to answer here. I am not working with clients outside Saskatchewan at this time. I suggest that you contact a highly experienced mortgage broker near you to assist.
it looks the money is free from equity from your video. But the money is to be paid back with interest, which is higher than mortgage interest rate. in other words it is loan. not free money unless you sale the house.
I am confused by your comments. I do not state that the money is free. Of course it has to be paid back. Why would the interest rate be higher on the equity portion of a mortgage refinance? Please explain.
I'm not so sure refi to do renovations or fold in credit card debt is the best idea. Credit card debt is kind of like a drug addict... pretty likely they're going to find another hit... clear the debt, rack it right up again. Think of it this way... would you go to the bank and say yah, id like to put a $1000 lien on my house to buy a TV...
Thank you 😊