Mortgage Refinance - Questions

[Usedtobelarisa]

I am working on my first refinance. I would like to take out some of the equity that the property appreciated by. What is the best way to do this? This is a 7 Unit multi family in London Ontario. What are the current rates that I should be expecting?

 

[Thomas Beyer]

Run the rent roll and 2-3 year operating statements by a commercial mortgage broker to give you an idea of $s. Likely about 65-70% LTV with CMHC at sub 3%, and around 75% without CMHC in the low 4's.

 

[Usedtobelarisa]

Can you recommend a commercial broker? would it be better to approach my bank or an independent broker? Thank you Thomas!

 

[Thomas Beyer]

Try Montrose Mortgage. They have many brokers across the country. Never go to a bank unless you have used them before for commercial deals and were satisfied with the terms. The current lender may be an option here, too, or a local credit union if in a small town. Also, don't use a residential mortgage broker, although if you have one ask her/him for a referral.

 

[Usedtobelarisa]

My current lender is First National and they will renew with huge fees but do not want to refinance for a larger amount. They say their policy has changed and they only do deals for $750,000 and higher. I will try a broker but I am wondering why is the bank less desirable then a broker? Are they more expensive usually? I do agree about credit unions in small towns, I have had a good experience with them on another property and maybe I should look into that again for this deal. Is there any problem with sending my paperwork to several different places; bank, broker, credit union and compare what they offer? am I obligated to work with someone if they looked at my paperwork and sent me an offer letter? Thank you very much Thomas for the great advice!

 

[DavidHoot]

This is a great question and something I've been wondering about too. I think that developing a long-term relationship with your bank/credit union would be a good thing because, after all, it's not just about getting the lowest rate, is it?



I wonder what others think?



David

www.HootInvest.com