Episode 4 Transcript – Porting a high-ratio insurance premium
Hey! Jessi Johnson here. I’m sitting at home. It’s a beautiful Thursday afternoon, I’m drinking a cold beer and I’ve got a thought I want to share with you. Do you realize that there’s something out there that people don’t realize is available to them when you want to do a refinance if you have a high ratio mortgage? Which means if you have a CMHC, Genworth or AIG insured mortgage. When you have that generally the loan to value is greater than 80%. What a lot of people don’t realize is that if you for example, are sitting with a 6% percent rate. Right now a variable rate is a very good way to go at 4.15%. That 2% is astronomically large when it comes to your monthly payment. You can convert, you can switch mortgages from that rate to the smaller rate. Now sometimes you can stick with your own bank, they may not charge a penalty. The majority of the time, I’d say 95% of the time, you’ll have to switch banks or rewrite the contract and have to pay this penalty. What 99.9% of the public and even most mortgage brokers do not, even most banks, don’t realize what you can do, you can port your Genworth premium to a new property. It’s just like a standard switch and transfer mortgage as long as you don’t alter the mortgage and change the mortgage which would make it a refinance. You’re not going to pay your premium, which means that’s going to save you 5, 10, 20, in some case 50 or 60 thousand dollars if you know what to do. Either way, I’m Jessi Johnson. If you’d like to reach me or have more questions you may go to firsthomeinfo.ca and I wish you a good day. Cheers!
