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90% 2nd mortgage.. need help

joe123

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I`m trying to access more equity out of a very good cash flowing property. I originly put down 20%, 3 years ago, and the market is still lower than what I paid for it.. argh Edmonton... I figure it`s getting close to 20% equity again, but I`d like to keep it and pull out up to 90% value. The loan is non-cmhc insured because I originally put 20% down. What are my options? Can I get a 2nd mortgage and only pay cmhc insurance on the difference, the extra 10%..? Or do I have to pay the insurance on the total 90%..? Do I have to go and get a private 2nd mortgage, and pay huge fees and rates? What are my options to accessing this 10% equity at a low cost?
 

fumbrunner

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QUOTE (joe123 @ Jun 3 2010, 12:20 AM) I`m trying to access more equity out of a very good cash flowing property. I originly put down 20%, 3 years ago, and the market is still lower than what I paid for it.. argh Edmonton... I figure it`s getting close to 20% equity again, but I`d like to keep it and pull out up to 90% value. The loan is non-cmhc insured because I originally put 20% down. What are my options? Can I get a 2nd mortgage and only pay cmhc insurance on the difference, the extra 10%..? Or do I have to pay the insurance on the total 90%..? Do I have to go and get a private 2nd mortgage, and pay huge fees and rates? What are my options to accessing this 10% equity at a low cost?

Sorry, new rules dictate a maximum of 80% for CMHC-insured investment properties.  See if you can get a favourable appraisal. 
 

ChrisDavies

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Find another option to get cash. What do you need the money for? Pushing that property to 90% will make it harder to qualify if you`re looking for more. I`d look at JV`s.
 

Thomas Beyer

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QUOTE (joe123 @ Jun 2 2010, 11:20 PM) What are my options to accessing this 10% equity at a low cost?
no options at low cost except selling it !
 

GaryMcGowan

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QUOTE (ThomasBeyer @ Jun 3 2010, 12:00 PM) no options at low cost except selling it !

You could always look at private money for 2nd mortgages but it wouldn`t be cheap!
 

RobMacdonald

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Even a private 2nd mortgage would be tough at 90% LTV. Most equity lenders are still only going as high as 80%, with the odd lender going to 85% .
 

MikeMcCrae

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Talk with your mortgage broker they may find some money for you. But private money is not considered a cheap way to go. When you look at all the options it may still be the way to go depending on your whole plan.
 
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