Grow-Ops Properties - Is it Lendable?

Some lenders try to get away from 'grow-op' properties. Some lenders will consider lending on such property providing the property is strong and has been fully remedied. In addition to the district or city re-issuing an occupancy permit, the credit union requires an inspection report prepared by Pacific Environmental confirming that the house is fit for human habitation prior to approval. Details about costs associated with obtaining the report can be found here at http://www.pacificenvironmentalbc.com

95% Loan to Value Second Mortgage

As of today, 2nd mortgage up to 95% LTV is available through selective lenders as long as the first position lender is a CMHC approved lender. If you are planning to do some equity take out on your principle residence, this will work well. For a business for self (stated income), this program is also available up to 90% LTV through very selective lender.

A few restrictions:
1-3 fixed rate selection
Owner occpuied properties only
First mortgage must be an approved CMHC elnder
Maximum 75% LTV conventional
Maximum 95% LTV high ratio insured mortgage
Stated income - must have 680> beacon score

Cash Back Mortgage? How about "Flex Down" ?

Have you seen 'cash back' mortgages with zero down payment funded on closing? Yes it is available at posted rate (not fully discounted rate). How about considering 'flex down' mortgage and get the best rate possible!? It saves you money while keeping our down payement 'zero' out of pocket - reason being - flex down mortgage still gives you the best rate possible vs. cash back mortgage adds the cost of money on the 'rate' itself. Make sure you compare the two options.

Here is how it works. With the 'flex down' program, the down payment can come from other sources such as personal line of credit, which only has 'interest only' payment. Also, with 95% LTV at 2.75% premium, we are only paying a bit higher at 2.90% in order to do 'flex down' mortgage program.

For more information on 'flex down mortgage', click here.

Critieria for Mortgage Registered in Company Name

CMHC GUIDELINES

-CMHC will allow a full rental property to be registered in a company name for fully qualified deals only.
-CMHC BFS simplified program is not eligible.
-When submitting a rental application with a Corporate borrower, the corporation’s full legal name is entered in the guarantor field and the individuals providing their personal loan guarantees in the borrower and co-borrowerfields.
-The mortgagor on title may be listed in the “Borrower”, “Co-borrower” or “Guarantor” fields in the Emili system for CMHC.

GENWORTH GUIDELINES

-Genworth will only allow a full rental property to be registered in a company name for fully qualified deals only.
-Genworth BFS Alt A program is not eligible.
-When submitting a rental application with a Corporate borrower, the corporation’s full legal name is entered in the guarantorfield and the individuals providing their personal loan guarantees in the borrower and co-borrower fields.

LENDER GUIDELINE EXAMPLE

-Maximum of 2 guarantors only (both AA and AAA deals).
-The guarantor(s) must have signing authority with the company.
-The guarantor(s) must pledge a personal guarantee.
-Confirmation that the corporation is financially sound, with no liens against it.
-Personal guarantee(s) for 100% of the mortgage loan is required when the borrower is a corporate entity.
-All parties on the application will be responsible for 100% of the loan, irrespective of which party is on title as mortgagor.

Home Buying - All Closing Costs and Associated Fees

What It Will Really Cost to Own a Home?

A quick rule of thumb, any home buyer can expect to pay from 1.5% - 4.0% of the purchase price of their home in closing costs.

Here are a list of expenses and some of them are optional:

Cost of Home
Purchase Price
GST (on new/significantly refurbished homes)

Upfront Costs
Appraisal fee $250 - $400
Down Payment and Deposit
Estoppel certificate fee (for condominium/strata unit)
Home Inspection $300 - $450
Land Transfer Tax
Legal fees and disbursements ($700 - $1200)
Mortgage broker's fees
Mortgage loan insurance premium (can be included in your mortgage)
Prepaid property taxes/utility bills
Property insurance
Survey or certificate of location cost
Title Insurance (do NOT neglect this one!)

CMHC Self Employed Policy Change

CMHC will no longer accept applicants under their Self Employed program who own and incorporate a company. CMHC will still however do “sole proprietor” under that program. If applicant is incorporated they will now have to fully qualify.

Other high ratio mortgage insures in Canada also include Genworth and AIG. However, the lenders must adopt the insurer's program for you to obtain the insurance.

New Immigrant - No Job, No Credit, 30% down

If you are a new immigrant and thinking to purchase a home or rental home in Canada, here is a good program:

* 30% down payment, can be owner occupied or rental.
* Maximum Loan $1M on rental, max $1.5M on principle residence.

Qualification: must have permanent resident card confirming landed immigrant status

Income: no income in Canada is okay. Need to provide information on offshore income and business; investment incomes, the more information, the better (if you own business, provide what does the company do, how many employees, your clients, gross and net income)

Credit History: no credit is okay, as long as having down payment (30%) + 12 months mortgage, interest and tax of “liquid assets” (if you have credit history, no need to show cash equal to 12 mth payment).

All down payment must be in Canada 15 days before funding.


Free consultation.
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Christine Chien, Personal line: 604-603-6189