Edmonton, Alberta · Member since 2017 · 32 posts · 13 votes
Hello, looking to add some Canadian BP members or join to some groups. Im new to real estate and as useful as BP is Canada has different guidelines laws to follow. I won't be annoying and message you constantly I promise! Any help is appreciated, thank you!
@Roman Stefaniw The new rules taking effect are for those with 20% down or more having to pass a "stress test", which is not only qualifying for the mortgage at the actual interest rate, but needing to qualify for it at the posted rate (which for a 5 yr fixed is I think 4.99% right now). Last year the same stress test was applied for borrowers with less than 20% down, so really they've just extended it - HOWEVER, in theory that only applies to federally regulated banks, which if you go through a provincially regulated credit union, in theory they are not obligated to follow the rule. Whether they do or not is up to them.
Word of advice though if you're looking at taking a mortgage you see yourself paying out or refinancing - go with a variable mortgage, as the payout penalty is usually only 3 months of interest. On our first flip I didn't know that and had a 5 year fixed, and got hit with an interest rate differential penalty - $7200! I'm currently getting a mortgage on a different property, and if I went through Scotia with their 5 year fixed, if I paid it out in the next 4 years, the penalty varies between $11,800 - $12,750. So be very clear on your prepayment penalty fees before you sign your life away. They can still do ports but with restrictions, and then they'll give you a blended rate, and the 2 mortgage components don't ever come due at the same time, and it's messy. Generally do not recommend, though I did it on one property and the lender gave me back my prepayment fee in full from the property it was ported from.
If you're doing a BRRR, as far as I'm aware you can get up to 80% LTV. I am currently doing a refinance and they have told me as long as I have 20% equity in it, I can take out as much as I want.
CMHC/Genworth need to be owner occupied and they do charge quite a bit for the premium (I think about 4% but I could be mistaken, haven't had to use it in a while). So it can easily add $10k+ to your numbers, but if the alternative is being able to get into real estate or not, then it could very well be worth it for you.
@Alon Rokach
Hi Alan,
You should come by the bigger pockets meetup in Toronto on Monday the 15th if you are available. The frog and firkin pub at 6pm 4854 Yonge st.
Elliott
Hi Elliott...that's not too far from me at all. I will definitely try to make it. How will I find you guys in there?
Hi Alon,
You can find out more information (i.e., time, location, etc.) at the post below. You won't have any trouble finding any specific individuals (e.g., like @Elliott Milek) that you want to connect with. Look forward to seeing you there.
@Brianne H. Hi Brianne, thanks for sharing your experiences when obtaining unsecured LOCs. Do you suggest starting at Credit Union's for approval first, before going to the "5 majors"? Also, what type of interest rates were you getting, (I know your post dates back a bit), and what was their required credit score? Thanks!
Rob
Hamilton, Ontario
@Brianne H. Hi Brianne, thanks for sharing your experiences when obtaining unsecured LOCs. Do you suggest starting at Credit Union's for approval first, before going to the "5 majors"? Also, what type of interest rates were you getting, (I know your post dates back a bit), and what was their required credit score? Thanks!
Rob
Hamilton, Ontario
Hi, I don't think it really matters if you're starting with credit unions or banks, but I would try to coordinate them so you're doing all your credit checks around the same time, so that each bank doesn't see what the others have already approved. I think my lowest was about prime + 2%, and my highest is prime + 5%. My credit score was pretty high (750+) so I'm not sure what their minimum requirement is. Good luck!
PS - One more thing I've recently encountered. My 30k LOC through RBC was closed (without my knowledge or consent) because in Jan, I paid off the balance in full when my house was refinanced. I went to use it in Sept, and found out at that time it had been closed. Why? Because apparently with RBC, unless the letter that came with the refinance cheque specifically says to keep it open, they will close it. TD and Scotia did not close my LOCs with them. My letter just said that the cheque must be used to pay off the balance on the LOC, but it said nothing about needing to close the account (and apparently nothing saying to keep it open either). Extremely frustrating when I was counting on having access to $30k just to find out that I don't, in fact, have access to that 30k, mid-way through a project.
Hey all, I recently joined BP and was thrilled to find a Canadian forum. I am currently working on a live in flip and this thread has already answered a few questions I had about acquiring a second mortgage. It is my plan to acquire SFR in either the Calgary or Lethbridge markets as I currently live between the two cities.
Hi Stephen, thanks for the input. I am leaning toward the Lethbridge market , though I am still early in the process . My goal is to acquire my first SFR in 2019.
Hi All, great forum! We live in Vancouver BC and would love to join a meet up group here if anyone is aware of one. We currently have 7 multifamily houses and have tapped out the area we are in. We'd like to start investing in the US or other university towns in Canada. We are looking for cash flow positive properties to live off for our retirement.
Good to know there are members active in Southern Alberta.
Stephen, Todd - we should consider a meetup for Lethbridge? I too have been leaning that direction for my first or future deals. I would love to hear what you and others have to say about experiences in the area. I was at a Calgary meetup last night and even though it was semi-cancelled at the last minute a few of us were there and had some great conversations.
Hi Andrew, I would definitely be interested in a meet up. My work schedule is pretty fluid so it will be hit or miss as to wether I will be around but let me know,
Hi All!
Edmonton here, originally from Ontario. Glad to see a Canadian thread! Relatively new to BP, just joined the 90 day journal mastermind & going to check meetup.com for any local meet ups! Planning to buy two rental properties in 2019!
Thank you everyone for the information you’ve posted!
hi everyone. I'm from Toronto. Just joined this site a few days ago. I have a few properties in London, Scarborough and oshawa. Looking to meet new people this year. Thanks