Canadian Real Estate/PORTING OUR MORTGAGE & DOWNPAYMENT
We would like to move a little north of the city. We still owe approx. 225,000.00 on current mortgage (house value approx. 375,000.00. Our bank is CIBC and they have said yes, they can port the mortgage. (even though our credit is not so good right now) - never missed a payment since 1993. I know we have to pay a deposit at time of offer, as well as home inspection fee. I understand that other fees are payable at closing. We were CMHC approved when we first bought, and have remortgaged in between. My question is, when porting in this case, how much do you think we will need for a down payment? (ie: 5%, 10%, 15%, 20%.
We will be meeting with the bank soon, but I would like to know what to expect, as the agent we are seeing is pretty fresh to this stuff.
Thank you so much.
Hi Karyn, depending on risk, the bank may ask for more but usually there is only 5% needed which is 5% down on equity, don't forget the fees and pesky land transfer tax. 20% is only needed in certain situations or when the house is more than a million dollars or considered an investment property. Not every financial institution has the same rules either. You may even want to look into refinancing it somewhere else depending on what your penalties are with CIBC.
CIBC has an obligation to renew your mortgage generally, as long as you have been making payments regardless of a credit change and refinancing may not always be an option if things have changed either.
This is really a question that the bank will answer for you and if you don't like the answer you could always approach the manager or a mortgage broker to investigate a 'B' Lender. The bank may require you have more down if they do not like the risk. A home inspection will be about $500.