mortgage brokers

[Ricky972]

I was wondering if it is possible to buy an investment property with only 5% down. I am new to this and it will be my first property. I am buying it in the Hamilton area. Does anyone know any good mortgage brokers that have a lot of experience with investment properties?

thanks

 

[RedlineBrett]

You can purchase a rental with only 5% down, however there is a larger insurance premium (CMHC`s fee was 6.5% or 6.75% depending on where the DP was coming from) Might also mean a slightly higher rate too.

Really need to make sure you are getting a good deal and that it will cash flow because after the fee is applied you will owe more on the property than it is worth on the day you bought it. (95% LTV + 6.5% insurance premium = new LTV of 101.5%) Cash flow is king!

As far as mortgage brokers go REIN has some of the best in the country. I`d recommend you search around a bit and interview a couple yourself!

QUOTE (Ricky972 @ Jan 26 2009, 02:02 PM) I was wondering if it is possible to buy an investment property with only 5% down. I am new to this and it will be my first property. I am buying it in the Hamilton area. Does anyone know any good mortgage brokers that have a lot of experience with investment properties?

thanks

 

[PeterKinchMortgageTeam]

QUOTE (Ricky972 @ Jan 26 2009, 03:02 PM) I was wondering if it is possible to buy an investment property with only 5% down. I am new to this and it will be my first property. I am buying it in the Hamilton area. Does anyone know any good mortgage brokers that have a lot of experience with investment properties?

thanks

rentals can be purchased with as little as 5% down - however, becuase you are highly leveraged (usually the LTV exceeds 100% with the high ratio premium), its important that your cashflow is positive and the property works with your 5 year plan, otherwise it may hinder your ability to get future financing.

 

[Ricky972]

QUOTE (CanadianMortgageTeam @ Jan 26 2009, 03:50 PM) rentals can be purchased with as little as 5% down - however, becuase you are highly leveraged (usually the LTV exceeds 100% with the high ratio premium), its important that your cashflow is positive and the property works with your 5 year plan, otherwise it may hinder your ability to get future financing.


Could someone recommend a good mortgage broker in the Toronto/Hamilton area that knows the REIN system??
Thanks for the replies.

 

[Nir]

Jas Grewal is a Mortgage Planner who knows the REIN system really well. His office is in Toronto, Tel: 416-410-9905, www.calumross.com

Good luck.

 

[AndyLuchies]

here`s a mortgage broker who apparently is in the hamilton area. The following is a referral to me (because I`m from hamilton) but I have not personally done any business with him yet.

"Hi Andy,
I also invested in hamilton as well as in Brampton. I want somebody in my team who can give time to me when i need. I am not big fan of outside brokers. I am very happy with Kevin Boughen (ph-9058596040). He understand the investor need and offer personalised service. He is also a investor and invested in rental properties in Hamilton. so you do not have to explain him anything. He got mortgage for five properties all with 10% down. Feel free to PM if you need more info. " (from manojsingh, rein member)