Here are some of the recent questions I have faced in the past couple weeks. Remember, everyone’s situation is different and based on several variables. Let me do the work for you!
Do I have lenders that will lend to a commercial/residential mixed use building?
– Yes, depending on the location. Down payment is typically in the 25% and up range.
I have heard that some lenders put premiums on their rates on rental properties, is that true?
– Yes, some lenders do have premiums on rental properties. The great thing is that I work with several lenders and would be able to still find the best rate that would work within both their guidelines and your situation.
Do you have lenders that have programs that will cover legal fees and/or appraisals for switching mortgages out of a collateral mortgage (TD/National, etc.)?
– As of January 22, 2016, yes I do have lenders that have specials to cover the costs. I would have to run the financials to see if any of the other lenders that do not but have lower rates would make sense. But you can be assured I would look into this for you.
Do you have lenders that deduct alimony/child support payments from the borrower instead of a liability?
– Yes! The payment can be deducted from the gross income and not added to the liabilities, thereby reducing the TDS for qualifying purposes. The exception is based on the insurers review & approval.
How are child support payments used for mortgage qualifying?
– Every lender is different, but a common way is that 100% can be used if payments represent less than 30% of borrower’s total gross income. Otherwise 50% is used for qualifying. Support payments cannot be only source of income.
Do you have lenders that will deal with assumptions?
– Yes!
Do I have lenders who allow addbacks to line 150 income or gross-up for high ratio deals for business for self clients?
– Yes if sole proprietor! If incorporated then they just use 2 year average for the salary they pay themselves as well as the dividends.
Do I have lenders that will do refinance plus improvements for low rates?
– Yes and some do not need receipts, just an inspection. Up to 80% loan to value.
Can I do mortgages for properties out in BC?
– Yes, I would co-broker with some of the leading mortgage brokers in British Columbia
Do you have any “A” lenders that still do rentals in a corporate name? For example, two doctors buying another rental in their hold-company which already contains a few rental properties, and likely no rental income required to debt service?
– Yes!
