mortgage renewal - with a twist

[blkgsr]

my mortgage renewal is coming up next may and i'm currently traveling abroad and am planing on so until around early spring next year

my house is currently rented out to someone that wants to stay long term

my question is what's the likely hood that i can get renewed with just a renter? signed contract for another year let's say?

or do i need to have my own income?

i will be working in australia near the end of this year but only for a few months to make some cash to continue travelling?

what about living abroad (longer term), would they accept for renewal?

or an i fucked and need to come home early and get a job at home so appease their requirements for renewal?

i'm going to be emailing my broker as well i just wanted to get other people opinions and insight

thanks

[tiger_handheld]

subscribed for more info.

I was told by RBC that "investors" (investor - explicitly stating you will rent your home and mortgage payments will be paid by rent payments) qualify using a different set of criteria whereas principal residents go the conventional route.

[Selanne_200]

I don't think this is a case of whether you're going to have to come home and work or work abroad. It's more a case of whether the property is considered primary residence or investment property. Like tiger pointed out, for an investment property, most of the major banks now use a different formula is deriving their debt service ratio.
When I talked to a scotiabank advisor a while ago, your rental income is reduced by i think 50% and then 25% of the remainder will be added onto your income to service the debt. I think the ideal situation is to convince the lenders that the house is your primary residence but you're also receiving rental income for portions of the house

[blkgsr]

it technically is my primary residence...ie i have no other lol

all my belongings are still in the house (though i really doubt that matters), mail still goes there (although redirected to a family members house)

another benefit i may have on my side is i have substantially paid down the mortgage over the past few years so the renewal amount isn't really all that large compared to 6 years ago...if i remember correctly it should be under $300k on a $600+ house...

[Drow]

i might be wrong here but i recently started out doing these kinda things at the bank

i had helped some customers do mortgage renewals... there was no income verification or debt service ratio check when i keyed in the renewal

i only did those sorta things when they actually applied for a new mortgage

mind you that was a renewal from an alrdy existent mortgage at my bank, no acquisition from another institution or anything

i do sorta believe that there is some sorta check in place, albeit it was done from me. sometimes when ppl get a mortgage handed to them by the bank, the term of the mortgage must be within the person's income / debt service ratio. some people do not get approved for some terms.

[BLKEM1]

Drow is on the money here
If you are renewing your mortgage and not changing banks or asking for refinancing you should just get the papers in the mail with multiple options and rates. Just initial and sign them and fax back.
I have my house in Ontario But live in Van now and I just renewed my mortgage at the beginning of the month.

[blkgsr]

uh ok thanks guys

i'm currently with Scotia Bank, best rates at the time and i did this through a broker

i'm going to email him in the next little while to see what he says...i was hoping to go better searching on my own for the renewal but it may be easier (and guaranteed) if i just stay with him and scotia....but i'm definitely not going to be spending more money (higher rates) just to do it

thanks again, please add more info if you have it