Thursday 23 May 2013

Rental Property Financing

Five years ago, it wasn't difficult to get 80% financing for a Rental Property. These days you really need the help of an expert like me to maneuver  through the policies and models banks use.

My best advice is to be prepared to put 25% down and try to find properties that have at least a 1.10% Debt Service Coverage.

Confused? Don't worry its not that difficult to explain once we talk. Thats my job

Some Lenders surcharge the rate as well. 2.89% 5 year can quickly climb to 3.34% if you dont find the right Lender.

My preferred Lender does rentals at 2.89% and 75% financing for good applications.

As always, get pre approved before you offer and remember what I always say.
Its never been a more important time to have a Mortgage Broker relationship.

Wednesday 22 May 2013

Banks Tightening Up

I've said it before and will say it again. lending policies are tightening up at the major banks.

This month I have processed several mortgages for self employed clients.

The banks have asked for NOAs for several years but now they are asking for T1 Generals on most deals.  As a Broker, I have experience handling these deals and I make sure up front to ask for the correct documents to be available anticipating the Lenders request.

The good news is that we are having very little difficulty getting these deals done once the paperwork is in process.

What next, hang tight to find out and remember what I always say.  Its never been a more important time to have a Mortgage Broker relationship.

Tuesday 21 May 2013

Mortgage Rates on the Rise?????

Several of our Lenders announced increases in the 5 Year Fixed term last week.

Increases have taken the 5 year from 2.89% to as high as 3.14%

Reasons given ranged from cost of funds to simply "we are too busy!"

Most of the Lenders that I like to use are still hungry and competing for as much market share as they can grab.
So, the good news is I have several Lenders at 2.84%-2.89% 5 year terms. at 3.69% for 10 year term.

However, things change quickly, so get Pre Approved and take advantage of my 120 day rate hold!

Its never been more important to have a Mortgage Broker relationship!