aabbcc888
New Member
I read that it is harder to obtain a mortgage for a small condo (less 600sq ft). Is that true?
I don't think this is true. However, two friends of mine were recently denied mortgages because valuations have become unsustainable and too high. So while they were prepared to pay, say $350 000 for a condo, the bank would only value it at $310 000 and mortgage for $260 000, leaving them on the hook for a 25%dp, which they couldn't afford. This might be what you're hearing about.
I don't think this is true. However, two friends of mine were recently denied mortgages because valuations have become unsustainable and too high. So while they were prepared to pay, say $350 000 for a condo, the bank would only value it at $310 000 and mortgage for $260 000, leaving them on the hook for a 25%dp, which they couldn't afford. This might be what you're hearing about.
Well it's good to know that the banks are prudent in this way....I guess this is just one of the reasons Canadian Banks were voted tops in the world! Our banks make wise decisions based on logic while other countries who got caught, gave anyone and everyone a mortgage indiscrimanetly...
I read that it is harder to obtain a mortgage for a small condo (less 600sq ft). Is that true?