There's no question there are a number of benefits for incorporating to purchase rental properties, every lawyer and accountant can provide an extensive list. But there isn't anything to put into your corporation if you can't get financing. And that window shrinks tremendously when buy under...

Most of the other members like realtors and lawyers are licensed per the province. You accountant would be another one that doesn't have provincial boundaries, as long as they have experience with your particular provinces tax credits etc.

Yes, don't be concerned with provincial boundaries when looking for a mortgage broker. I've got clients in Alberta, Ontario, and most provinces. Pick your broker based on their expertise.

Sounds like you managed to get in just under the wire. The good news in the policy change is that you are no longer required to prove $50K per rental property. They have amended that requirement to 10% of value in each rental property in overall net worth. So that 's a substantial improvement...

I actually find that I get better answers from my underwriter than the branch does. It all depends on the relationship the broker has with Scotiabank and to what level the relationship as a mortgage broker is. If a broker has to deal with the regional underwriting centre, yes it can be difficult.

I wouldn't expect that the policy change would affect renewals. As long as the mortgage has been paid as agreed, Scotiabank normally doesn't re-adjudicate accounts at renewal. Unfortunately, it would probably eliminate the option of refinancing the mortgage at some point.

Scotiabank announced a significant change to the Rental Property Financing Program this morning. Products Available: 5 year closed and 5 year VRM - no other products will be available Eligible Properties : Maximum 5 rental properties per individual, including those financed by other FI's...

If you're getting prime - .5 or .6%, consider yourself lucky. Most of the lenders are moving to prime - .2 or even closer to prime. Most lenders I've spoken with feel the discounted VRM's are going to be a thing of the past. Now, Benjamin Tal came out with the same statements after the...

Hi David, I think the way you are collecting is the best way. It gives some grounds to raise the argument with the lender and insurer. If the economic rent is lower, then the lender would adjust the eligible credits accordingly. The buyer is still entitled to the credits and can use them...

Be cautious about the LTO credits. I just was working with a client on the buyout, and Genworth ordered an appraisal of the property. The vendor was setting aside $500 per month from a total lease of $2450. The appraiser stated the economic rent was $2200, so Genworth would only accept $250 per...

Yes you can. Most lenders will allow you to use home equity from either your residence or rental property toward a purchase of another investment property. The new loan (or refinance) must be taken into the debt servicing calculation. Some lenders allow you to access a HELOC at very good...

If you're buying the place as your principal residence, the bank will finance the lower of the purchase price or appraised value. I have had situations where the buyer does get a 'deal', a distressed seller or something like that. It is possible to complete and then refinance shortly after...

Yes, there are other alternative lenders out there. If you've got equity in the property and a good credit score, there are other lenders that have come to the table with very decent programs. The availability will depend on the region you live in, but Home Trust and Optimum are 2 lenders that I...

Personally, I would interview several realtors and then commit to the realtor you're most comfortable with and that you are confident will meet your expectations. The better you are at communicating your goals and target properties, the better the realtor will have to perform. The problem...

Hi Adam, Maybe if you look at it a different way, it may seem right. It's not illegal, that's for sure. Assume you went out and bought a rental property and used $50K from your HELOC as the downpayment. After you own the property for a month, you have an interested JV partner in the...

The banks generally do not allow 'gifts' to purchase rental properties. There is one lender that will, but it has to be from a direct relative. I would be a little concerned if your broker used the words 'illegal'. It's not illegal, it just has to be structured properly. If the downpayment...

I would recommend putting 5% down on your next purchase provided it is intended to be your principal residence. If you put down 20%, you can set up a readvancable LOC after you create some equity below the 80% level. So if you put down 20%, you won't have any equity for future investments for...