View Single Post
  #6  
Old 04.10.2020, 10:30
st2lemans's Avatar
st2lemans st2lemans is offline
Forum Legend
 
Join Date: Dec 2010
Location: Lugano
Posts: 31,783
Groaned at 2,368 Times in 1,722 Posts
Thanked 38,751 Times in 18,258 Posts
st2lemans has a reputation beyond reputest2lemans has a reputation beyond reputest2lemans has a reputation beyond reputest2lemans has a reputation beyond reputest2lemans has a reputation beyond reputest2lemans has a reputation beyond repute
Re: Pre payment on your mortgae

Quote:
It's fairly standard. Many banks do indeed require that the mortgagor hold around 35% equity (usually based on the purchase price) within a given period. If the initial deposit is less than 35%, the mortgagor will consequently be required to pay a small amount of principal (amortization) with each interest payment. Often this goes almost unnoticedócheck your home loan statement for details.
We have 30% equity, and only pay a low rate interest only mortgage. I guess that the bank thinks that it is worth more than we paid (they even offered to lend us more).

Tom
Reply With Quote
The following 2 users would like to thank st2lemans for this useful post: