Mortgage Brokers: Current multifamily rates and products in AB?

[BJPastor]

Calling all mortgage brokers!

Can I get an update on what lenders are offering for products and rates right now. What are lenders allowing for minimum down payment? How are they wanting the deal structured? What are the current interest rates? Any additional info is welcome.

I am willing to begin a new relationship with a broker if one that suites my needs is available.

Thanks for your input.
B.J.

 

[nikkibroker]

QUOTE (EdmInvestor @ Nov 19 2009, 10:26 AM) Calling all mortgage brokers!

Can I get an update on what lenders are offering for products and rates right now. What are lenders allowing for minimum down payment? How are they wanting the deal structured? What are the current interest rates? Any additional info is welcome.

I am willing to begin a new relationship with a broker if one that suites my needs is available.

Thanks for your input.
B.J.


Hi B.J.

I`ve been in the mortgage business for over 7 years now and contrary to some article`s posted here on the REIN forum, it is proving to be the most difficult time for getting mortgages, in my career. The tightening up of lending guidelines and the changes in criteria change daily, making deals harder and harder to put together.

Many lenders offer *Quick Close specials now, for deals closing within a certain amount of time (usually within 3 weeks)
These usually come with restrictions on pre-payment options.

CURRENTLY (today) you can get 5 yr fixed with all the bells and whistles for 4.04%
Prime minus has come back and you can even get an attractive 3 yr ARM, previously not available. This is available at P. - .25% = 2.0%

For owner occupied you can buy with 5% FREE down payment program - unlike the days of the ZERO down mortgage that equated to 107% financing, this is a true free downpayment where your mortgage starts the same as if you put the 5% down. (5% down + CMHC or Genworth premium of 2.9%) BEWARE -- this product only offers 5 & 7 year fixed terms at POSTED rates.

Minimum down payment is still 5% for all other OO`d property.

Rentals - Min 10% down - full qualifying required. Some lenders are adding a premium to the rate for rentals.
Conventional Rentals - 65% LTV and lower -- full stated income allowed - no proof of income, no NOA`s, proof of BFS required.

Call or email me if you have further questions, always happy to help.

 

[Thomas Beyer]

QUOTE (EdmInvestor @ Nov 19 2009, 10:26 AM) Can I get an update on what lenders are offering for products and rates right now. What are lenders allowing for minimum down payment? How are they wanting the deal structured? What are the current interest rates? ...With CHMC: Interest rates are around 4% for 5 year money .. high 4% to low 5% range for 10 year money.

15% down minimum .. based on CMHC`s valuation, which often equates to 20-25% cash down or 75-80% LTP (loan to price)

Without CHMC: rates are about 1.5% to 2% higher .. so high 5% to low 6% range for multi-family .. 25% down minimum .. maybe 20% for a small asset .. more for older assets or small towns.

Some lenders have P+ 0.5% to P+1% short term variable money up to 65% LTV !

 

[mortgageman]

Earlier this week I was quoted a spot price of 3.55 percent on a five year insured deal and roughly 5.5 on a five year uninsured deal.

 

[Thomas Beyer]

QUOTE (mortgageman @ Nov 27 2009, 02:05 PM) Earlier this week I was quoted a spot price of 3.55 percent on a five year insured deal and roughly 5.5 on a five year uninsured deal.
3.55% is lower than expected .. but 2% spread is expected between conventional and CMHC insured !

what bank ? what loan amount ? what LTV ?

 

[mortgageman]

QUOTE (ThomasBeyer @ Nov 27 2009, 02:08 PM) 3.55% is lower than expected .. but 2% spread is expected between conventional and CMHC insured !

what bank ? what loan amount ? what LTV ?

$1 million on a $1.8 million building. As for bank, I can`t give away all my secrets!

 

[Thomas Beyer]

QUOTE (mortgageman @ Nov 28 2009, 12:23 AM) $1 million on a $1.8 million building. As for bank, I can`t give away all my secrets!

I see .. sub 60% loan-to-value .. many life insurance lenders in that bracket due to even lower risk !

Secured by a personal guarantee, too ? Or non-recourse ?