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Commercial mortgages

Brad Redekopp

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What is the best way to get a mortgage for a small 6 plex. Est value 450K. Talked to mortgage broker they charge 1-2%
That normal ? There a better way to go about it; approach credit union ?
 

Brad Redekopp

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Should have added I own it outright and want to slap a mortgage on it


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Thomas Beyer

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Royal Bank is the only bank that may lend using a residential mortgage.

Yes a 1-2% fee upfront for such small mortgages are very common.

Try First National or Peoplestrust for a cheaper CMHC mortgage.

If long term hold consider max LTV, max length aka 10 yrs and max amortization at 35 years
 

Brad Redekopp

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I was talking with the local credit union, she said because I paid cash and owned it less than a year She would only lend on the purchase price. This the case all around ?


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Thomas Beyer

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I was talking with the local credit union, she said because I paid cash and owned it less than a year She would only lend on the purchase price. This the case all around ?


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Not quite.

Banks lend on DCR usually with LTV being a second consideration.

What verifiable NOI do you have ?

Divide by 1.3 or perhaps 1.2 for CMHC mortgage or even 1.1 for ten year 35 years am mortgage to calculate max mortgage.

What LTV is that ?


Thomas Beyer, Asset Manager, Investor, Community Improver, Author, Father, Mentor www.prestprop.com
 

Cory Sperle

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RBC is the only option for a 6 plex in my opinion, as qualifying is a mix of building income and personal, and almost no (ridiculous fees), or reports.
 
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