How can I require more funds?

[muskokalandlord]

Hi

I own 3 Home`s two are rentals and 1 is my principal residence. But I am at the end of my chain, were or how can I am get more funds from the bank and a lower interest rates. The property I am interested in is not my principal residence it`s a duplex for $190,000.00 the bank want`s 25% down which is $45,000.00 plus closing fee so I need $50,000.00 I can get around $30,000.00 from a line of credit which I have so what is the best way to get the rest or how do I get a lower Interest rate?

Thanks Daryl

 

[housingrental]

You should:

Wait and save more money

OR

Bring in partners

If you own 3 properties, and don`t even have $20K in your account you should be asking yourself do you really need a 4th property at this point?

Real estate can be a great investment, but it isn`t risk less. Things can and do go wrong. You want to ensure you can swim when they do.

 

[PeterKinchMortgageTeam]

QUOTE (muskokalandlord @ Mar 1 2010, 09:28 PM) Hi

I own 3 Home`s two are rentals and 1 is my principal residence. But I am at the end of my chain, were or how can I am get more funds from the bank and a lower interest rates. The property I am interested in is not my principal residence it`s a duplex for $190,000.00 the bank want`s 25% down which is $45,000.00 plus closing fee so I need $50,000.00 I can get around $30,000.00 from a line of credit which I have so what is the best way to get the rest or how do I get a lower Interest rate?

Thanks Daryl


Hi Daryl
Can I ask which lender you`re trying?
When ever you purchase with less than 20% down, the mortgage needs to be insured with CMHC and they will charge you a hefty premium (but that premium will be added to the mortgage so it`s not an upfront cost). You can purchase a duplex with as little as 5% down. The government recently announced some major changes to the rules for financing rental properties so you only have a little more than a month to fall under the current rules.
I would only suggest going this route if it made sense, but nonetheless, the option is available if you qualify.
Feel free to contact us to see if you`ll qualify under this program.
Thanks

Bonnie Deck
Peter Kinch Mortgage Team
866-988-8326

 

[muskokalandlord]

QUOTE (housingrental @ Mar 2 2010, 10:35 AM) You should:

Wait and save more money

OR

Bring in partners

If you own 3 properties, and don`t even have $20K in your account you should be asking yourself do you really need a 4th property at this point?

Real estate can be a great investment, but it isn`t risk less. Things can and do go wrong. You want to ensure you can swim when they do.

 

[Pheenix]

QUOTE (PeterKinchMortgageTeam @ Mar 2 2010, 02:48 PM) Feel free to contact us to see if you`ll qualify under this program.

Thanks

Bonnie Deck
Peter Kinch Mortgage Team
866-988-8326

Hey Bonnie
This fellow sounds like he is in Ontario cottage country so he might prefer a "PK approved broker`, more proximal, do you have a list of who he could contact - I`m fairly new to REIN so don`t have the names at my finger tips yet.

 

[JoeRagona]

Catherine Harding is a PK approved broker out of Barrie. 705-716-9080.

[email protected]

Tell her I sent you!

 

[muskokalandlord]

QUOTE (PeterKinchMortgageTeam @ Mar 2 2010, 12:48 PM) Hi Daryl
Can I ask which lender you`re trying?
When ever you purchase with less than 20% down, the mortgage needs to be insured with CMHC and they will charge you a hefty premium (but that premium will be added to the mortgage so it`s not an upfront cost). You can purchase a duplex with as little as 5% down. The government recently announced some major changes to the rules for financing rental properties so you only have a little more than a month to fall under the current rules.
I would only suggest going this route if it made sense, but nonetheless, the option is available if you qualify.
Feel free to contact us to see if you`ll qualify under this program.
Thanks

Bonnie Deck
Peter Kinch Mortgage Team
866-988-8326

 

[muskokalandlord]

What is the program in which the goverment is offering I use TD they never mention anything like that they said all rental property are 25% down and PPR are 5% down. What can I do to make this happen without paying big interest?

 

[GaryMcGowan]

TD requires 25% down for rental properties.

Use a mortgage broker and they will be able to shop the deal around for you. There are still many lenders that will do a conventional 20% down mortgage.

 

[mortgageman]

TD is not a rental-friendly bank. There are other banks that are much more receptive to investors.

QUOTE (GaryMcGowan @ Mar 3 2010, 07:35 AM) TD requires 25% down for rental properties.

Use a mortgage broker and they will be able to shop the deal around for you. There are still many lenders that will do a conventional 20% down mortgage.

 

[PeterKinchMortgageTeam]

QUOTE (Pheenix @ Mar 2 2010, 07:56 PM) Hey Bonnie
This fellow sounds like he is in Ontario cottage country so he might prefer a "PK approved broker`, more proximal, do you have a list of who he could contact - I`m fairly new to REIN so don`t have the names at my finger tips yet.


Hey Pheenix
Just because Daryl is in Ontario, doesn`t necessarily mean he needs to deal with an Ontario broker. PK`s head office is in BC, but we deal with REIN members from Vancouver Island to Nova Scotia to the Northwest Territories and everything in between. Now if Daryl wants to meet or deal with a local PK approved broker, he has that option. That`s why Peter set up the system he has, for REIN members that want to deal with someone local. But if you`re okay with doing everything over the phone, fax and email, then you can deal with any PK approved broker anywhere in the country.
Thanks

Bonnie Deck
Peter Kinch Mortgage Team
866-988-8326 Ext.27

 

[PeterKinchMortgageTeam]

QUOTE (muskokalandlord @ Mar 3 2010, 06:06 AM) What is the program in which the goverment is offering I use TD they never mention anything like that they said all rental property are 25% down and PPR are 5% down. What can I do to make this happen without paying big interest?


This program is called CMHC Income Property. Max TD will do is 85%. If you`re considering high ratio financing for a rental, I would suggest another lender besides TD as you don`t want to use up cap space with them, when this mortgage could and should be done with another lender. Without CMHC insurance, TD`s guideline is 65% loan to value, but they often make exceptions to 75%.
Thanks

Bonnie Deck
Peter Kinch Mortgage Team
866-988-8326 Ext.27

 

[PeterKinchMortgageTeam]

QUOTE (mortgageman @ Mar 3 2010, 09:09 AM) TD is not a rental-friendly bank. There are other banks that are much more receptive to investors.


I would have to disagree. TD is one our biggest lenders in the conventional rentals sandbox. We use them quite often. Their only glitch is min. down payment requirement of 25%, but other than that, they`re great to work with.
Thanks

Bonnie Deck
Peter Kinch Mortgage Team
866-988-8326 Ext.27

 

[RCrein]

QUOTE (mortgageman @ Mar 3 2010, 10:09 AM) TD is not a rental-friendly bank. There are other banks that are much more receptive to investors.

Which bank do you feel is most receptive? TD will only do up to 4 units as a residential mortgage. I have heard that other majors will do more, perhaps up to 10 units, without triggering commercial rules. Anyone know which bank is most open in this regard? Thx.

 

[RobMacdonald]

QUOTE (RCrein @ Mar 3 2010, 09:19 PM) Which bank do you feel is most receptive? TD will only do up to 4 units as a residential mortgage. I have heard that other majors will do more, perhaps up to 10 units, without triggering commercial rules. Anyone know which bank is most open in this regard? Thx.

That depends on what you are looking for. As far as a favourable rental offset policy and adequate overall cap space, I find Scotiabank to b the most rental freindly.

With regards to properties with more than 4 units, pretty much every bank has that policy. You may find an exception every now and them but commerical rules do apply above 4 units. I have heard of some lenders that may consider up to 6 units, but never any more than that.

 

[RobMacdonald]

QUOTE (muskokalandlord @ Mar 3 2010, 06:06 AM) What is the program in which the goverment is offering I use TD they never mention anything like that they said all rental property are 25% down and PPR are 5% down. What can I do to make this happen without paying big interest?

TD offers the program but it`s very hard to qualify as they only use 50% of the rental income on the portfolio.

There are many lenders offering the CMHC program up to 95% LTV with 80% offset. You have to act fast though as the announcement indicated, the program will be gone on April 19th.

And there`s no telling when CMHC and the lenders might `start` to implement some changes.

 

[Pheenix]

QUOTE (PeterKinchMortgageTeam @ Mar 3 2010, 06:22 PM) Just because Daryl is in Ontario, doesn`t necessarily mean he needs to deal with an Ontario broker. PK`s head office is in BC, but we deal with REIN members from Vancouver Island to Nova Scotia to the Northwest Territories and everything in between. . . .

if you`re okay with doing everything over the phone, fax and email, then you can deal with any PK approved broker anywhere in the country.

Thanks Bonnie, I appreciate getting that clarification, may it serve me well in the near future.