CMHC fees

  • trev

    Status: REIN™ Member

    Posts: 86
    Joined: 31 Dec 2007
    From:

    I am having trouble with the CMHC fees not being correctly accounted for in the Financial Analysis & Proforma.
    1. When I choose to have these fees added to the mortgage, it subtracts the Revised mortgage principle from the purchase amount, giving me a <negative> downpayment instead of the actual 5% or 10%. This in turn affects the closing costs and ROI calculation.
    2. As well the ROI calculation takes the mortgage paydown figure alone as profit instead of the actual remaining principle on the mortgage. On the property I am analyzing, REMA shows profit from mtg paydown of $11,000.+- in 5 years while in reality it takes until year 5 or 6 for the paydown to pay off the premium itself before it becomes a profit center (based on 5% down)

    Trevor Lubsen
    Fason Enterprises
    705 760 2877
    trevor@raymargroup.com

          
  • GarthChapman

    Status: REIN™ Member

    Posts: 1,835
    Joined: 31 Aug 2007
    From:

    Hi Trev,

    1. We have made the correction to the Lender fees impact on down-payment calculated by REMA in the Portfolio, and Brian is writing the same for the Analyzer. It'll be uploaded in a few days. In the meantime just eliminate the CMHC fees and increase your mortgage payment by using the 'over-ride payment' feature. That will get you the correct figures for your analysis.

    2. Please send me all the figures involved by email to helpdesk@remacanada.ca so we can check the math of what you are reporting here. You could save the Financial Proforma report as a pdf and email it to me as it should have all we need within it.

    Thanks,
     Garth 
     Diamond REIN member  and Advisory Board Member
      with 3 top-10 awards. 2 Michael Millenaar Leadership Award
    s
     Mortgage Advisor  Residential, Multi-family, Commercial
      Garth's webpage at Jencor Mortgage      email garth@jencormortgage.com

     
    REMA co-creator 
      Real Estate Management & Analysis Software      
    email garth@remacanada.ca
     
                  
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