Question by : When you refinance your mortgage do “they” require a down payment?
We are going through a broker. When you refinance your mortgage, do they request a “down payment” toward that as if it were a new mortgage? We live in Canada. The housing market is still pretty strong.
Answer by Karen
Mortgages are granted based on a loan to value ratio. Presumably you have had your mortgage for a while and you how a pretty good value there, so no you would not have to make another down payment. However! You will be required to pay closing costs all over again, including getting an appraisal and anything else the lender wants to see. So before you sign on the dotted line, calculate how fast you will be able to get your money back (the closing costs), based on how long you think you will stay in the house. Most people don’t stay in a house past 5-7 years. Good luck.
What do you think? Answer below!
No, but they require sufficient equity
No. But, they require equity. If your not taking cash out you can have little equity.
If you want cash out they will require allot more equity and won’t go above 80% LTV
(loan to Value)