New Mortgage after Proposal is Completed

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karebear

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New Mortgage after Proposal is Completed
« on: May 15, 2017, 04:17:14 PM »
Hi there,

My husband and I finished paying off our proposal in Feb 2016.  We currently have a mortgage, but would like to buy a larger home.  We currently have enough saved for a 5% down payment, plus with the equity in our home, we would have more than 20% downpayment.  What would our chances of being approved for a new mortgage?  Should we even bother?  Since our propasal has been completed, we've been able to secure a new car loan, as well, we each have a secured credit card through People's Trust as well as we each have an unsecured cc with Capital One with $5000.00 limit each.

Any help would be appreciated.

Thx
Kerri

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Bank-snoopy

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Re: New Mortgage after Proposal is Completed
« Reply #1 on: May 16, 2017, 10:28:42 AM »
I just went through this and chances are you will have to go with a 2nd mortgage on top of your normal 1st mortgage

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tuneman

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Re: New Mortgage after Proposal is Completed
« Reply #2 on: June 16, 2017, 05:10:44 PM »
Hey karebear,

Here is my experience. I refinanced my home to pay out my Consumer Proposal. I was approved up to 75% LTV at 3.99%. I plan on selling my home within a year, so I only did a one year refinance at 65% LTV. This way I was able to pay off my proposal within 18 months. It freed up a lot of money per month by doing this with a slightly higher interest rate.

The terms are simple, you must have good employment, no major debt on those credit cards you have and you'll need to have 25% down minimum to be considered. Can you find a home that you like that allows you to have 25% down? If you can manage that you'll be approved with a lender like Home Trust, Equity Financial Trust, Eclipse by MCAP, etc. The rate may not be the best, but this is part of the process of re-establishing yourself with the world of credit.

Talk to a mortgage broker and a great one will be able to walk your through the process before jumping in...

Good luck!

 

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