# Mortgage refinance question from 40 year to 25



## Causalien (Apr 4, 2009)

The banking situation is getting interesting, which led to this thought exercise because I personally have no idea how the change in mortgage amortization works during refinancing.

What happens, when your 40 years amortization loan at 5 years term come up for renewal and the CMHC only insures 25 years amortization? Will you be able to refinance and get another 5 year term at 40 year amortization?

Any of you who work at the big 5 can shed some light?


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## marina628 (Dec 14, 2010)

They will just renew it with remaining 35 year amortization ,they will not reset it to 40 years again if that is what you are asking.You already paid CMHC on the loan so as long as you are not looking to refinance it will be a simple process.


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## sags (May 15, 2010)

If people remain with the same lender, they should retain the terms of the mortgage, but won't have a lot of negotiating power with the interest rates if the banks want to be prickish.

If they move to a new lender, they would have to conform to the new rules.


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## canadianbanks (Jun 5, 2009)

If you stay with the lender that gave you the 40-year mortgage, you should be able to keep the terms of the loan at renewal. No bank has interest in rocking the housing boat, so as long as the borrowers can pay their 40-year mortgages they'll be fine. If they can't watch out below...


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