Remortgaging your house can be frustrating, especially when you get a higher rate than a younger, new home buyer who is not as financially well off as you. Banks are willing to work with new home buyers who put little money down because they have their loan guaranteed by the Canadian Mortgage and Housing Corporation (CMHC). These borrowers are considered a lower risk for the lending institution than someone with no insurance or guarantee on the payment of that mortgage. Those who have a higher home value and want to refinance are at the mercy of their lending institution who is not as willing to work with them.

“How did a 27-yeaer-old kid get a 3.39% mortgage while I’m paying an extra 0.45% a year?”

Read more: https://business.financialpost.com/real-estate/mortgages/why-your-neighbours-kid-is-getting-a-better-mortgage-rate-than-you