Recent content by Torontotony

Your point is somewhat correct, however lenders do not make a profit on property, they make it on loan interest and ancillary charges for other products and services. The 10% buffer you refer to is not a safety net for the lender, rather the insurer. Lending on the premise that a market is...

Both TD and Scotia have had an equity lending policy in place for years. It's not, however, as cut and dry as suggested. There are minimum credit score requirements, and there is a reasonability test for declared income (ie. is it reasonable for a line cook to earn $100k/year?). The programs...

Closing costs typically average about 1.5% of the purchase price, excluding any rebates on Land Transfer Taxes. In this case, the total closing costs should not be any greater than $3,600. The only exceptions to this would be in the case whereby your sister was still required to make part of...

Make no mistake, this type of thing is happening, but it's not enough to move the market.

It's commonly referred to as an "Oklahoma deal", and it is fraud at every level. Buyer, seller, both realtors, the lawyers closing the deal, the banker or mortgage broker putting the financing together, are all in the fraud. Unfortunately I see this type of thing all too often, especially...

To the OP... The most prudent advice is to approach the lender who has the Capped Rate program with the developer, immediately. The interest rate that will be offered will not be very competitive looking as compared to interest rates offered today, but like a previous poster indicated, the...

There really aren't any catches or limiting conditions to a HELOC. Basically, it is Line of Credit, secured by real estate, which allows you the maximum flexibility of any mortgage product. Should you choose, but in your case this would not be advisable given you are looking to sell the...

Hello Rocky, The least expensive method of financing a property purchased for a quick sale, is the HELOC. Typically, a HELOC is priced by lenders at Prime + 1/2 to 1%, but are fully open (no prepayment/repayment penalties) and have the option of carrying on an interest only basis. HELOC's all...

Hello Nejo, I can speak to the financing aspect of your question. Interest rates on Mixed Use Commercial/Residential mortgage are just slightly higher than a comparable residential mortgage. These mortgages are considered commercial and as such are priced accordingly. Regards, Tony

Taal, thanks for the briefing on the inner workings of a variable rate mortgage, but you are out of your element here. 20+ years of mortgage lending experience qualifies me to dispense advice on whose been had and who hasn't. By their very nature, variable rate mortgages, until they have...

Pay no attention to those comments. If it's a variable, the mortgage will automatically float down to reflect current market rates. No need for panic, and certainly no reason to believe "you've been had".

^^^^^^^^^ What he said. Capp your mortgage through the "onsite" lender, to secure today's rates, and worry about shopping for lowest rates as early as 120 days prior to the actual closing date.

Yes, this is 100% true. Some banks do place limitations on minimum square footage. This has nothing to do with the property value, or the buyer's ability to qualify for a mortgage, or the amount of downpayment available. It has everything to do with the bank's perceived "saleability" of some...

Um yeah, good luck with that. Kevin, Abuyer is giving you the correct info. Variables are typically non-negotiable. FYI, the correct lowest Variable rate is set at Prime - .25% and it's not with a bank.

Kevin, from what we are seeing on the street 3 of the big 5 negotiate. But there are other mortgage lenders who are providing the same "best negotiated rates" without having to jump through hoops to get it.