I`m referring to 1-4 units. I checked both docs and there`s no chart showing CMHC premiums for only rental properties, which is what I`m looking for (not rental - owner occupied). Anyone else know where to find it?
I realize Jason is a mortgage broker but i`m just trying to figure out where he got 6.5% cmhc fee for rentals at 5% down 35 yr amort.
QUOTE (AndyLuchies @ Jan 23 2010, 02:32 PM)
And your other point is just as important: How quickly will the banks start saying no if you only put 5% or 10% down on each property. This strategy is fine if you want to stop at 2 but good luck getting financing after you've maxed out CMHC's high ratio opportunities on your first properties.
Andy, in case you missed it, CMHC's cap is $1.5million for rental properties - Peter Kinch said that on the 1st or 2nd CD of the December REIN meeting in Ont....maybe i'm misinterpreting what peter said but i think unless you're 1st two properties totals around $1.5m, most people should be able to get up to 4 and maybe 5 properties cmhc insured..
QUOTE (AndyLuchies @ Jan 23 2010, 02:38 PM) Are you serious! The mortgage lady at Scotia (where I have my principle residence mortgage) told me they don`t do rental properties!!! When did you get your mortgage with them?
My realtor has 2 rentals with Scotiabank (got 2 years ago) and is in the process of getting his 3rd. Don`t know why she`d say that.
QUOTE (AndyLuchies @ Jan 23 2010, 12:38 PM) Are you serious! The mortgage lady at Scotia (where I have my principle residence mortgage) told me they don`t do rental properties!!! When did you get your mortgage with them?
Hi Andy,
Scotiabank has probably the best policy in the industry at the moment with respect to rental properties. I would definitely get a second opinion.
QUOTE (ctang @ Jan 23 2010, 01:02 PM)
Thanks for the docs,
I'm referring to 1-4 units. I checked both docs and there's no chart showing CMHC premiums for only rental properties, which is what I'm looking for (not rental - owner occupied). Anyone else know where to find it?
I realize Jason is a mortgage broker but i'm just trying to figure out where he got 6.5% cmhc fee for rentals at 5% down 35 yr amort.
QUOTE (AndyLuchies @ Jan 23 2010, 01:38 PM) Are you serious! The mortgage lady at Scotia (where I have my principle residence mortgage) told me they don`t do rental properties!!! When did you get your mortgage with them?
I got mine in November. I went to the local branch but worked with a mortgage guy who moves between branches. He works out of what I understand to be a specialized mortgage office in Strathroy. I don`t even bank with Scotia, or didn`t anyhow.
Was referred by my RE agent.
If you want some more info email me at m_mccracken@rogers.com and I can hook you up with his info.
QUOTE (AndyLuchies @ Jan 23 2010, 11:38 AM) Are you serious! The mortgage lady at Scotia (where I have my principle residence mortgage) told me they don`t do rental properties!!! When did you get your mortgage with them?
Scotia is very good for rental properties. They let you use a 70 percent rental offset. They do have a net worth requirement of $50,000 per rental property.
QUOTE (fumbrunner @ Jan 23 2010, 01:22 PM) Premiums are the same.
There are different premiums for non-owner occupied rentals. The premiums are signficantly higher for 95 percent LTV mortgages. This is because the risk of default is higher.
here is a link to the rental premium info sheet http://cmhc.ca/en/hoficlincl/moloin/mupr/index.cfm
QUOTE (mortgageman @ Jan 24 2010, 10:01 AM) There are different premiums for non-owner occupied rentals. The premiums are signficantly higher for 95 percent LTV mortgages. This is because the risk of default is higher.
here is a link to the rental premium info sheet http://cmhc.ca/en/hoficlincl/moloin/mupr/index.cfm
Ah, yes you are right. On review, this is the hard copy document that I have. I stand corrected!!
I`m being told by my mortgage broker that I need a minimum of 10% down for non-owner occupied. 5% down is no longer an option for non-owner occupied. Is this true?
QUOTE (Tootse @ Feb 20 2010, 06:41 AM)
I'm being told by my mortgage broker that I need a minimum of 10% down for non-owner occupied. 5% down is no longer an option for non-owner occupied. Is this true?
true and it's going to change to 20% from 10% sometime next month.
however, not sure if VTB will be allowed by some banks(?) - this would still allow only 10% down of your own funds.
QUOTE (mortgageman @ Jan 20 2010, 03:29 PM)
Yes but we're talking 5 percent down. The CMHC fee for 95 LTV on a rental is 6.5 percent plus .2 percent for every five years the amortization is extended beyond 25 years. In other words, it's a 6.9 percent premium added to the mortgage on a 35 year amortization. Clearly this is going to make it significantly more difficult to debt service the portfolio and the subject property.
We just did a deal with 5% down on a $235K purchase, and the CMHC fee difference was $40 per month on a $400 cashflow. Not very much. And we're left with enough downpayment to buy 3 more similar properties.....if we can get them before the rules change in April!
QUOTE (Tootse @ Feb 20 2010, 06:41 AM)
I'm being told by my mortgage broker that I need a minimum of 10% down for non-owner occupied. 5% down is no longer an option for non-owner occupied. Is this true?
No, that's not true. You can still put down 5% until the rules change in April. Has your application been submitted to CMHC? It can happen that CMHC won't offer 5% because of other circumstances and request 10% down.
But, if you can qualify 5% down is still available.
No, that`s not true. You can still put down 5% until the rules change in April. Has your application been submitted to CMHC? It can happen that CMHC won`t offer 5% because of other circumstances and request 10% down.
But, if you can qualify 5% down is still available.
Thanks Rob. My application has not been submitted. I`m trying to close this deal within the next few days to get it done before the new rules are in place. My credit history is terrific and shouldn`t have any problems qualifying. Maybe it is viewed as a second income property since my current house has a legal suite? I don`t know. I guess I`ll ask my broker to double check on it.
QUOTE (Tootse @ Feb 20 2010, 07:31 PM)
Thanks Rob. My application has not been submitted. I'm trying to close this deal within the next few days to get it done before the new rules are in place. My credit history is terrific and shouldn't have any problems qualifying. Maybe it is viewed as a second income property since my current house has a legal suite? I don't know. I guess I'll ask my broker to double check on it.
By the way, is the property you are looking at a triplex or a 4 plex. That's another reason why 5% down may not be available. The minimum down payment is 10% for 3 to 4 units.
QUOTE (RobMacdonald @ Feb 21 2010, 02:10 AM) By the way, is the property you are looking at a triplex or a 4 plex. That`s another reason why 5% down may not be available. The minimum down payment is 10% for 3 to 4 units.
QUOTE (Tootse @ Feb 21 2010, 05:50 PM) It is a Duplex.
Upon requesting my broker to double check, thanks to the information provided by Rob and others in this discussion, I found out I can get in with 5% down. Thanks Everyone!
No, that`s not true. You can still put down 5% until the rules change in April. Has your application been submitted to CMHC? It can happen that CMHC won`t offer 5% because of other circumstances and request 10% down.
But, if you can qualify 5% down is still available.
I`ve just made an application through my bank for a 5% down CMHC backed mortgage trying to get it under the April 19th deadline for the new CMHC changes where 20% down on rental properties with a CMHC backed mortgage will be required and I was advised that CMHC is requiring 20% down even though the April 19th date has not yet arrived.
I understand in reading various posts from this forum that CMHC is still in some cases doing 5% down. My question is are you aware whether CMHC would keep track of my banker`s application, i.e. if I were to approach another financial institution and resubmit my application which would then hopefully be handled by a more lenient CMHC advisor, would that advisor simply see my recent request and the 20% demand and give the same reply? Is there any chance of changing there minds and would a mortgage broker be of any assistance?
