The Situation
A police officer's condo refinance with a major bank had funded early, before the full equity take-out the client had asked for. Two months later the Metro Vancouver condo was worth about $800,000 with roughly $565,000 owing.
The Challenge
Banks rarely refinance a mortgage they funded eight weeks earlier. The early funding had not been the client's doing, and the equity was needed for a townhouse purchase already under way.
The Solution
We went back to the same prime lender and asked for an exception on the facts: the client's credit score had risen into the high 700s, the variable payment had fallen with prime, and both base and two-year average income had increased. Renovations and a higher assessed value supported the appraisal. The lender approved a new residential mortgage of about $640,000, 80% of value, on a 30-year amortization at bank pricing.
The Outcome
The remaining equity, about $75,000, came out at bank rates with no private second mortgage, and it formed part of the down payment on the client's next home.