Every lender has different rules around prepayments so you'll need to check with the lender, or simply look it up on their website. Prepayments are generally on the ORIGINAL loan amount at beginning of a term and not reduced balanced. Let us know if you have any additional questions or email us...

Commercial properties are all unique in terms of financing and really depend on location, condition and financials. Typically for a mixed-use commercial, 30-35% down is what we'd advise clients to expect to put down with 20-25 year amortization. If the property has strong fundamentals, lenders...

Hello, Private lenders generally go to 80% LTV and sometimes 90% LTV. Without any additional collateral, 100% LTV is unlikely. Best course of action is likely a JV. The great thing about REIN is that there are plenty of other people on the opposite side who may have the funds for JV’s. Just a...

All lenders have different rules around LTV’s. The average lender will lend up to 80% LTV on first $1MM and then 60% LTV on the remaining amount above $1MM. In markets like Vancouver and Toronto where the pricing is already higher, exceptions can be made to get access to 80% LTV on as high as...

A Fixed vs Variable decision should be made based on your risk tolerance and goal timeline with the property. Historically, Variable has been the better option in terms of providing a lower rate, BUT there’s no way to predict the future and direction of rates. Calculate the payment on a 5-year...

CHIP is the only one offering this in Canada (as far as we know). Lenders offer financing primarily based on risk, ability to repay the loan and assets. CHIP is taking a much higher risk here because there are NO REPAYMENTS on the loan. In fact, they only make money when property is sold...

Reverse mortgages are a great financing tool and can be very attractive for some. PROS: As long as there is plenty of equity in your home, you can qualify without traditional income verification requirements for a pretty large mortgage amount. This means that someone with a $1MM home who...

If looking to pull equity out of rental OR refinance a brand new application and FULL review would be required to ensure affordability for lender. You’re essentially asking lender for more money so they’ll want to re-qualify, whereas a regular refinance your keeping existing balance and simply...

Each lender has there own internal policy and servicing calculations. I recommend you contact us (solutions@vinegroup.ca) to identify if the lender your considering is the best option for your long term goals.

Some lenders are offering to fund pre approvals the are approved before Dec 15 this year. Remember, you need to close the purchase within the 120 days of the approval.

Thomas, I’m not sure what you are hinting at? The conversation is about a loophole to qualify with the proposed higher qualifier. The loophole that was suggested was using a longer amortization like 35 years to qualify. I’m saying investors should not rely on this loophole until its proven and...

You can owner occupy a 4 plex as a primary residence. Technically 5% is available, but normally 10% is what the insurer will request. As for qualifying, keep in mind, you need to be employed. Both you and your guarantor’s income need to service both your credit, your fathers existing house plus...

All I’m saying is don’t make assumptions. There are already reports of concerns that regulators may increase audits if lenders use the amortization loopholes. We don’t make the rules, we just need to understand them and play within.

At this time, it’s early to confirm exactly how lenders will be “interpreting” the new rules and what “loop holes” will be utilized. At the end of day, the regulators will be looking to lenders for feedback and modifications can and will most likely be made. Also, keep in mind if lenders get...

We offer VINE Wealth, a holistic approach to your overall financial health and well-being, headed by Peter Kinch. Peter is in BC but we can anchor you with an agent in AB. Feel free to contacts us at solutions@vinegroup.ca.

VINE Group is here to help! Please contact us at solutions@vinegroup.ca.

The stress test doesn’t have anything to do with banks door policies. What it does is impacts how lenders evaluate new investor mortgages and existing investors mortgages. So, if your pre-positioned to invest in 4 -5 properties for a total of $2 Million of residential real-estate, you may find...

The guidelines proposed require all mortgages to qualify under the stress test interest rate. It will reduce the average buyer purchase power by 30%. But it impacts everyone equally. The bigger question is how will existing investment portfolios be "stress tested". There are a few suggestions...

You're correct that renewal isn't automatic and technically needs to be approved. But a renewal is a renewal. The difference is usually there is more due diligence on a commercial loan than a residential loan. Commercial loans need to be reviewed annually not just on renewal regardless the term...

I can’t speak for the banker or the specific bank and its policy. Nevertheless, most commercial loan renewals can be offered at the same rate as a new mortgage or refinance. Retention is a big part of banks bottom line. That being said, banks usually don’t hold interest rates for commercial...