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Financing, Mortgages and Insurance What options are best for you and your situation?


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  #111  
Old 2017-08-23, 02:20 PM
cinammonswirl cinammonswirl is offline
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Location: Ontario
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Hello Chase,

DO you by chance know what percentage of rental income lenders use in mortgage application?

Also, we are closing in April 2018, are there rate holds offered from now until then?

Thank you!


Quote:
Originally Posted by MortgageChase View Post
Update on Mortgage Rates as of TODAY 22/8/17:

Lowest 5 year Fixed: 2.79%
*For this offer, the transaction must close within 60days from application date

5 Year Fixed: 2.84%
5 Year Variable: 2.20% | Prime - 0.75%

2 Year Fixed: 2.54%
3 Year Fixed: 2.59%
4 Year Fixed: 2.79%

Disclaimer:
The above mortgage rates are the best available and are subject to approved credit and may change at anytime without notice. The above is accurate as of 3:12pm on August 22nd, 2017

If you have mortgage questions or looking for advice with regards to anything mortgage related, I would be more than happy to assist. My services are free and I will entertain all inquireys as my time permits. I return all calls within 1 hour if you do not catch me live, and all written inquireys within 3 hours(if recieved between 8am-5pm).

Kindest regards,
__________________
Ottawa Mortgage Broker - Chase Belair
Dominion Lending Centre - Smart Debt,
License #12236
chase@chasebelair.com
www.chasebelair.com
Cell: (613)769-9213
Check out my reviews on Google & Yelp
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  #112  
Old 2017-08-23, 02:52 PM
MortgageChase MortgageChase is offline
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Location: Ontario, Ottawa
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Hi Cinammonswirl,

Great question.

Lenders have their own guidelines regarding rental income. Including but not limited to, some use +/- 50% of the rental income, ignoring the mortgage, tax and heat expenses, while others use +/- 80% while considering expenses.

I can provide a more exact answer if you let me know who your current or future lender is.

Re: Rate Holds

There are rate holds offered for up to 2 years. While they are much less attractive than your standard "120 day" rate hold, they are a great feature to protect yourself in the event of a sharp increase.

Kindest regards,
__________________
Ottawa Mortgage Broker - Chase Belair
Dominion Lending Centre - Smart Debt,
License #12236
chase@chasebelair.com
www.chasebelair.com
Cell: (613)769-9213
Check out my reviews on Google & Yelp

Last edited by MortgageChase; 2017-08-23 at 02:54 PM.
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  #113  
Old 2017-08-23, 03:01 PM
cinammonswirl cinammonswirl is offline
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Join Date: Feb 2015
Location: Ontario
Posts: 46
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Thank you for your response!

Our rental mortgaged by Presidents choice financial. I am interested to know which lenders would be best with our situation. Our new home would not be closing till April 2018 so I am just curious as to what option is the best in this case. To take advantage of the 120 day hold, I am assuming we would have to submit an application sometime in December to secure a rate etc.



Quote:
Originally Posted by MortgageChase View Post
Hi Cinammonswirl,

Great question.

Lenders have their own guidelines regarding rental income. Including but not limited to, some use +/- 50% of the rental income, ignoring the mortgage, tax and heat expenses, while others use +/- 80% while considering expenses.

I can provide a more exact answer if you let me know who your current or future lender is.

Re: Rate Holds

There are rate holds offered for up to 2 years. While they are much less attractive than your standard "120 day" rate hold, they are a great feature to protect yourself in the event of a sharp increase.

Kindest regards,
__________________
Ottawa Mortgage Broker - Chase Belair
Dominion Lending Centre - Smart Debt,
License #12236
chase@chasebelair.com
www.chasebelair.com
Cell: (613)769-9213
Check out my reviews on Google & Yelp
Reply With Quote
  #114  
Old 2017-08-23, 03:21 PM
MortgageChase MortgageChase is offline
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Join Date: Nov 2013
Location: Ontario, Ottawa
Posts: 7
Default Reply to cinammonswirl

Unfortunately, PC does not work with Mortgage Brokers so I am not privvy to their policies.

But you are correct regarding timeline - The best approach for your position would be to be reach out to PC Financial, and one other bank(ex: RBC) to secure you a long term rate hold(I am not sure PC offers this). As soon as you are 120 days, get in touch with a mortgage broker for another rate hold and thorough assessment. Ensure that the broker is highly reviewed and has been in business for 5+ years as rentals are something that new brokers often struggle with.

Note that you are not binded to any broker or bank while shopping for a mortgage and can obtain as much advice from as many avenues as you please. The only thing to be of concern is that frequent credit inquires within a short period can harm your credit score if it is fragile.

I hope that helps

Ottawa Mortgage Broker - Chase Belair
Dominion Lending Centre - Smart Debt,
License #12236
chase@chasebelair.com
www.chasebelair.com
Cell: (613)769-9213
Check out my reviews on Google & Yelp
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  #115  
Old 2017-08-23, 03:34 PM
cinammonswirl cinammonswirl is offline
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Join Date: Feb 2015
Location: Ontario
Posts: 46
Default

thank you for the tips!

Are you familiar with the rental rules ? Maybe its something you can assist with if we reach out to you offline?
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  #116  
Old 2017-08-23, 03:50 PM
MortgageChase MortgageChase is offline
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Join Date: Nov 2013
Location: Ontario, Ottawa
Posts: 7
Default Reply to cinammonswirl

I can ask my colleague at PC Financial and relay the details .

Please do send me an email(in my signature below) so that I can respond to as soon as I have PC's rental lending guidelines in hand.

Ottawa Mortgage Broker - Chase Belair
Dominion Lending Centre - Smart Debt,
License #12236
chase@chasebelair.com
www.chasebelair.com
Cell: (613)769-9213
Check out my reviews on Google & Yelp
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  #117  
Old 2017-12-13, 09:55 AM
MortgageChase MortgageChase is offline
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Join Date: Nov 2013
Location: Ontario, Ottawa
Posts: 7
Default Update: Mortgage Rates

Purchase Rates:

If you're buying with less than 20% down payment(insured mortgage):
2.89% is a decent 5 yr fixed rate & 2.30%(Prime - .90%) is a decent 5 yr variable rate.

If you're buying with 20% down payment or more(insurable, but not insured):
2.99% is a decent 5 yr fixed rate & 2.35%(Prime - .85%) is a decent 5 yr variable rate.

If you're buying with an amortization greater than 25 years(no longer insurable):
3.29% for 5 year fixed and 2.75%(Prime - .45%) for 5 yr variable.

Most rates can be reserved for up to 120 days.

Hope this helps

Ottawa Mortgage Broker - Chase Belair
Dominion Lending Centre - Smart Debt,
License #12236
chase@chasebelair.com
www.chasebelair.com
Cell: (613)769-9213
Check out my reviews on Google & Yelp
Reply With Quote
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