Financing and long distance investing questions

4 Replies

Hello everyone,

I'm new here and to real estate investing in general.  I live in BC and am looking at investing in some multi-family properties in Moncton, New Brunswick in the near future.  My question is, when it comes to getting financing, does it matter if you use a bank/mortgage broker in your own province, or one where you're planning on buying?   Any advantages or disadvantages if both can be done?

Thanks!

Mark Locki

@Mark Locki

When you say multi-family are you meaning residential properties (2 - 4 or 5, 6 units) or larger {commercial} multi-family buildings?

If you are looking at residential properties and dealing with one of the Big-5 banks, it matters little whether you use a branch in your own province or here in NB.   Similarly, many mortgage brokers have access to underwriters with a national reach.

If you are looking at commercial multi-family properties, you can still deal with your local branch/arm of one of the Big-5 banks in BC.   However, dealing with a broker in NB may provide you access to a local Caisse populaire  (credit union) who are more prone to finance a small (6-12) unit property than one of the large banks.

Originally posted by @Mark Locki :
@Roy N. thanks that's very helpful. We're looking for 2-6 unit places so we'll talk with our local banks first.

Most of the Big-5 will only finance 2-4 unit properties as residential.   However CIBC will underwrite 5-unit properties and RBC up to 6-units as residential.