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Taking equity out of a Grand Montréal property caps at 80% of the value set by the lender’s appraiser, not by the price you paid. What that comes to in numbers.
Refinancing tops out at 80% of the property’s value, and it’s the lender’s appraisal that sets that value, not the price you paid or what the neighbour got. Breaking the current term brings a penalty, and it often decides whether the move is worth it.
Bring the mortgage statement (balance, estimated penalty), the tax bill, the notices of assessment and a list of debts to clear. Get the penalty in writing from your lender, because the phone quote and the real figure don’t always match.
As a rule you can refinance up to 80% of the value, minus what you still owe. A $500,000 home in Grand Montréal with $250,000 left on the mortgage works out to roughly $150,000, before you count the penalty for breaking the term.
Before comparing two monthly payments, add up what the change costs: the penalty, legal fees, the appraisal and the new loan’s fees. A lower payment that takes six years to pay back those costs is not a saving. Run the numbers for Grand Montréal first.
The amount you take out is capped at 80% of the value, as set by the lender’s appraisal. What you do with the money does not have to be justified, unless you plan to deduct the interest.
A lower monthly payment and a lower total cost are two different things. Stretching the amortization eases the budget now and adds years of interest, so compare both figures before you sign anything.
To prepare
Yes. It all runs by phone, email or video call, and documents go through online. We can meet in person, but most files get settled without anyone having to travel.
Up to 80% of the property’s value, as the lender’s appraisal sees it, not as the price you paid. If you break the current term, the penalty goes into the calculation, and it is often what decides whether the deal is worth doing.
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Contact
Buying, renewing, refinancing, or something a bit out of the ordinary: tell us where you’re at, even if it’s still fuzzy. Mathieu gets back to you with next steps and the documents to pull together.