QUOTE (RobMacdonald @ Jan 20 2010, 12:51 PM) It all depends on the lender and they`re policies. TD`s `policy` is 35% down on rentals, but they regularly make execptiosn to 25% down. That`s where working with a good mortgage broker is the key.
Firstline offers 80% LTV per their policy which sounds great, but then when you apply the DCR program and work out the 1.1% rule, it`s more likely that you will have to put 30 to 35% down. The subject property is qualified on a 25 year amortization. It`s almost a `slight of hand` trick. Rather than saying `we don`t want to finance rental properties at 80%` they just move the bar on the qualification so that it`s almost impossible to find a property that will get to 80% LTV.
I guess that`s where the risk department of the banks come in to play. There`s no question that Firstline was the leader in financing rental properties for many years. With the dip in value over the last year and a half, they`ve had to re-evaluate their exposure to this market.
What size of property are we talking about here? I have absolutely no problem financing SFD, duplexes, triplex, at 35 yr amort with 20% down and no CMHC fees. Are we talking commercial multi-unit?