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how to get more loan from bank?

H

hongwei

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I have three property already, one is for my own family, and other two are for rental. Recently plan to get another for $620k, I will pay 20% down payment by selling one of my existing house.

I am IT consultant, and have the income of more than $10,000 per month, and my wife has the stable job as social worker.

My question is, in order to apply for the mortgage, do I need to tell the mortgage broker or bank all of my liability (existing loans)? If so, does these existing liability affect my application for the new loan?

are there any good mortgage brokers to be recommended? thanks

Regards, hongwei
 
Yes, all liabilities have to be disclosure (and they will popup in your credit report)...so do not try to hide stuff or you will get burn. I am in the same boat as I am from IT and self-employed. So far I have 3 mortgages (principal + 2 rentals) all CMHC insured... trying to get a 3rd one this spring. I will be using a broker again as they offer more options than a bank.

It`s all about the numbers.... I am in Ottawa and I have used the same broker (http://www.ottawamortgageteam.com/) but I am open for a new broker (prefered REIN member).


QUOTE (hongwei @ Jan 19 2010, 09:26 AM) I have three property already, one is for my own family, and other two are for rental. Recently plan to get another for $620k, I will pay 20% down payment by selling one of my existing house.

I am IT consultant, and have the income of more than $10,000 per month, and my wife has the stable job as social worker.

My question is, in order to apply for the mortgage, do I need to tell the mortgage broker or bank all of my liability (existing loans)? If so, does these existing liability affect my application for the new loan?

are there any good mortgage brokers to be recommended? thanks

Regards, hongwei
 
Hi Hongwei,

It is always best to disclose all of your debts. If you own properties that are bought through the REIN system, with positive cashflow, then you should not have any concern with obtaining financing.

It sounds like you`re self employed, so the banks will use your net income from the last 2 years Notice of assessments. But as long as your debts can be covered by your income and your wife`s income with the banks ratios, you should be okay.

Each bank will have a different way of treating the rental income, so it`s a matter of finding out where you are, and then finding the bank that will offer the best solution.

If you would like to review your current mortgage options, please give me a call
 
QUOTE (RobMacdonald @ Jan 19 2010, 12:19 PM) Hi Hongwei,

It is always best to disclose all of your debts. If you own properties that are bought through the REIN system, with positive cashflow, then you should not have any concern with obtaining financing.

It sounds like you`re self employed, so the banks will use your net income from the last 2 years Notice of assessments. But as long as your debts can be covered by your income and your wife`s income with the banks ratios, you should be okay.

Each bank will have a different way of treating the rental income, so it`s a matter of finding out where you are, and then finding the bank that will offer the best solution.

If you would like to review your current mortgage options, please give me a call


Totally agree....full disclosure of your liabilities. They will find out any way..

Try TD Canadatrust . I am GTA Ontario. There is a 25% down payment ..no questions .... They will still do a Credit check on you +spouse and use the rent as income for the new property. Off course you must show good income on your Notice of assessment. Also I do NOT have 3 rental properties yet--just started.

I am also in IT Consultant and in between jobs. Just got approved for a another house with 25% down, 2 years notice of assessment and the sales agreement. They need to know that you are updated in your taxes to the government. Not updated, then no deal..

Cheers
 
Talk to a mortgage broker for your next deal. Not all lenders treat rental properties the same - especially with regards to rental income, net worth requirements and down payment requirements - and you`re far better off working with someone who knows what`s available for your situation rather than trying to figure it out on your own.
Yes, full disclosure of your debts and payments is very important.
 
QUOTE (mortgageman @ Jan 19 2010, 11:04 PM) Talk to a mortgage broker for your next deal. Not all lenders treat rental properties the same - especially with regards to rental income, net worth requirements and down payment requirements - and you`re far better off working with someone who knows what`s available for your situation rather than trying to figure it out on your own.
Yes, full disclosure of your debts and payments is very important.


Thanks all for your valuable advice!!

If lender require 25% down for 620k house, I still need some money to get it done. Last month, I bought 450k house, and totally renovated (finish basement, build 2 bathrooms, install AC conditioner, wood flooring), cost me $38,000. and now the similar house in the area sold for $570,000. Can I re-finance the house after only one month? Can I ask different lender to re-finance the house from the bank where I got the loan for this house? Please advice, thanks in advance.
 
QUOTE (hongwei @ Jan 20 2010, 08:43 AM) Thanks all for your valuable advice!!

If lender require 25% down for 620k house, I still need some money to get it done. Last month, I bought 450k house, and totally renovated (finish basement, build 2 bathrooms, install AC conditioner, wood flooring), cost me $38,000. and now the similar house in the area sold for $570,000. Can I re-finance the house after only one month? Can I ask different lender to re-finance the house from the bank where I got the loan for this house? Please advice, thanks in advance.

What are the terms of your mortgage? Is it open or closed? If its closed, you will have to pay a penalty to break the mortgage. You can refinance. The bank will have an appraisal done on the property to determine the value. Also, if you used CMHC for the original purchase, you will pay additional fees for any top-up.
 
How quickly you can refinance depends on the lender you are with. Some will allow you to refinance, some have policies that will not allow you to refinance after 6 months or 1 year. I would have been important to know that ahead of time in order to make sure the lender was okay with this.

Depending on the equity, try first with your lender and if not successful, you can shop elsewhere. However, I imagine your penalty would be very steep if you were to move the mortgage at this point. A HELOC may be an option from another lender as well.
 
I thought if you were selling a home with a mortgage term still outstanding that banks would waive the penalty on the early payment if you where taking out a new mortgage for the same or more money. Is this not the case? Assuming a comparable rate on the loans that is.

Mike
 
QUOTE (MikeMcC874 @ Jan 20 2010, 02:51 PM) I thought if you were selling a home with a mortgage term still outstanding that banks would waive the penalty on the early payment if you where taking out a new mortgage for the same or more money. Is this not the case? Assuming a comparable rate on the loans that is.

Mike

You`re correct on your point Mike, but the above point was talking about taking equity out. Essentially what you`re referring to is porting the mortgage to a new property. Banks will generally allow up to 6 months to replace the old mortgage, and will reimburse the interest penalty that was charged.
 
I think it also depends on who the mortgage is with.

I remember ING allowing me to refinance the mortgage with them. I basically was allowed to make it a 25 year mortgage again. Payments were the same but I was able to pull out some money.

I think your best bet would be to get a HELOC. Doesn`t have to be with the current mortgage company.

And ALWAYS go with a mortgage broker, unless you have a very good, long term close relationship with someone at your bank. A mortgage broker will always find you a better rate.
 
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