Real Estate

The Official Mortgage Rates Thread

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Dec 1, 2015
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That is fairly normal. But depending on the specifics, you may get 80%, 100% of the rental income. Some lenders use a different approach.
Andre Oliveira - Mortgage Agent at Valuemortgage
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anotherbargainhunter wrote: If I want to rent my current condo where I live in, is it normal for all lenders to consider the monthly rent as income at 50% only? Is there any lenders out there that consider monthly rent as income at greater than 50%?
Hello,

While using 50% is the standard for qualifying, there are plenty of lenders who will treat the rental in a more 'consumer friendly manner.' Are you looking to buy another property to live in and rent the condo? If so, there are lenders who can 'wash' the rental, meaning they will use a net surplus/deficit calculation to offset the rental income, which is preferable to a 50% usage of rental income, while factoring in all of the debt. It really depends on the lender and the situation, but there is certainly better than the classic 50%.

Connor
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Connor Green
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GreenMortgages wrote: Hello,

While using 50% is the standard for qualifying, there are plenty of lenders who will treat the rental in a more 'consumer friendly manner.' Are you looking to buy another property to live in and rent the condo? If so, there are lenders who can 'wash' the rental, meaning they will use a net surplus/deficit calculation to offset the rental income, which is preferable to a 50% usage of rental income, while factoring in all of the debt. It really depends on the lender and the situation, but there is certainly better than the classic 50%.

Connor
Hi Connor

My plan is to rent the condo and buy a pre construction town or semi, or detached if I can afford it. With only 50% rule, I am confident that I wouldn't qualify to support 2 mortgages. BUT, if there is a way just like you suggested "wash", then you might just enabling us to keep the condo and buy another one. Please feel free to PM me with more information. I am definitely interested to learn more.

Thanks
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anotherbargainhunter wrote: Hi Connor

My plan is to rent the condo and buy a pre construction town or semi, or detached if I can afford it. With only 50% rule, I am confident that I wouldn't qualify to support 2 mortgages. BUT, if there is a way just like you suggested "wash", then you might just enabling us to keep the condo and buy another one. Please feel free to PM me with more information. I am definitely interested to learn more.

Thanks
Pm on the way!
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Connor Green
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Concierge Mortgage Group
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vik56in wrote: Hello , Iam shopping around too. I was curious to know how much downpayment you are putting, is it 5%,10% or 20% to get the rate ? Thx.
How much are you putting down? Rates start at 2.74% 5-year fixed right now.
Kevin Somnauth, CFA
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Mortgage Balance: $228K
Lender: BMO
Payment Frequency: Bi-weekly
Amortization: 25 years
Location: Ottawa
Renewal Date: May 1, 2018

We got a call for an early renewal, and got offered 3.19% for 5-years fixed.

Can anyone comment on the offer? It seems high. What is the likelihood this rate can be lowered? What rate should I be shooting for? This is a big change, considering my current rate is 2.79%.
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Yodums wrote: Mortgage Balance: $228K
Lender: BMO
Payment Frequency: Bi-weekly
Amortization: 25 years
Location: Ottawa
Renewal Date: May 1, 2018

We got a call for an early renewal, and got offered 3.19% for 5-years fixed.

Can anyone comment on the offer? It seems high. What is the likelihood this rate can be lowered? What rate should I be shooting for? This is a big change, considering my current rate is 2.79%.
What is the property value (roughly)?
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
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Just a note;

One lender has announced that they will start stress testing applications on December 15. Given that January 1 is holiday season, I have to assume most lenders will do something similar. If not, they will be receiving a lot of applications right before January 1 (which is Christmas when everyone is on vacay).
Kevin Somnauth, CFA
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CdnRealEstateGuy wrote: What is the property value (roughly)?
MPAC assessed it at 322K. When the mortgage was setup 5 years ago, the price that was sent to the builder was ~370K.
Last edited by Yodums on Nov 10th, 2017 12:52 pm, edited 1 time in total.
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Yodums wrote: MPAC assessed it at 322K.
Is the mortgage insured (ie CMHC insured)?
Kevin Somnauth, CFA
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Yodums wrote: MPAC assessed it at 322K. When the mortgage was setup 5 years ago, the price that was sent to the builder was ~370K.
And not MPAC assessment...market value.
Kevin Somnauth, CFA
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Yodums wrote: My best guess at MV is ~400-410K.
Assuming you have no HELOC...

You can get 2.15% 5-year variable or 2.84% 5-year fixed today. But, these rates are only a 3-4 month rate hold. You can check back here in 2018 to see where rates are at then.
Kevin Somnauth, CFA
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Hi all,

Being offered a renewal for 4 year fixed at 2.89% and a 5 year closed variable at P - .80%. (First National) 20 year, insured mortgage.

I've confirmed with my mortgage broker that this is the best I can do based on the lenders he deals with. Where is everyone finding P - 1.15?

Mortgage Balance: $205k - Property value approximately $420,000 - $450,000 on market value.
Lender: First National
Payment Frequency: Bi-weekly
Amortization: 25 years (20 remaining)
Location: Southwestern Ontario
Renewal Date: February 21, 2018.

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