All Forum Posts by: Julie Toh

@Layton Gilbraith When I structure a mortgage for my clients that are buying their 3rd etc property, I know which lender to use once I know their income to debt ratios. Generally a mainstream lender's rental calculations are not in a borrower's favour, the good news is that there are lenders that use 80%-85%-100% offset for non-subject rentals, this may the route to take. 

@Kasey Luft I posed your question to a few of my JV partners. The gist of each response was that people do business with people they trust - are you an expert in what you do? I let my accomplishments speak for itself, do you have a track record per @Account Closed ? Keep on learning, keep on executing, be  kind, be a Go-Giver and you'll be successful!

@Dominic Royles Depending on your long term vision, I'd suggest looking outside of Metro Van to Chilliwack and beyond if BC is your playground. 

@Sheldon Peart Two key things I'd explain to a client when i arrange their first mortgage are : fixed vs. variable rate and mainstream vs. wholesale banks. 

Fixed or variable rate? This is an age old debate. Consider these startling facts: 

1. Six out of ten mortgages are broken at an average of 38 months in. People plan to stay in their home for the full five years of the mortgage and beyond, but then things change. Things happen, both good and bad. Divorce, marriage, kids arriving, kids departing, job transfers & promotions, an offer on the property that you cannot refuse… and now you want out of the mortgage. The trouble is, depending on which institution the 5 year mortgage is with, the pre-payment penalties can be as high as 4.5 per cent of the balance. ($4,500.00 per $100,000 of mortgage balance)

2. It costs nine times more to get out of a five-year fixed (bank) mortgage than a two-year fixed or a variable. Typically the prepayment penalty for the shorter term or variable is about 0.5 per cent on the balance (just $500.00 per 100,000 of mortgage balance). And the term on a two-year might even be short enough to wait out, avoiding any penalties at all.

The five-year fixed mortgage can be a safe-ish way to go, but it needs to be placed with the right lender, one with flexible prepayment penalty policies and flexible early renewal policies.

There is much more than just the rate itself to review when getting a mortgage.

@Justin Hui Welcome to BP. Sounds like you have been doing a lot of research and are ready to pull the trigger. What strategy you choose will depend on your 1 to 5 year plan for your new career in real estate investing. A buy and hold strategy is for the long term and you will be rewarded for your patience. 

@Ghassan Alsayyed Welcome to BP. I hope you find the resources you need to move forward. In response to your post...I've arranged an equity take out mortgage for a client who did a BRRRR after 6 weeks. Whether it's 6, 10 or 16 weeks, your application needs be well packaged to be successful. A key thing to note is that lenders have liquidity and default concerns these days. Refinancing a rental is not a priority for many lenders.

@David S.@David S.Welcome to BP. I'm live in Vancouver, Canada and am a seasoned investor. You ask some insightful questions and if you DM me, I'd love to share some of my experience. 

@Oladimeji Morgan Welcome to BP! There are some excellent resources here from podcasts to webinars, and you can certainly glean of good info from the forums. All the best.

Your response made me smile...it's honest, practical and it's also what my parents (born in Singapore) would say to me. :-)

 Kelowna...for the good wine.