Kingsley Qin, Broker

                           

                           Take The World To Sale Your House

Sotheby's International Realty Canada
125 Lakeshore Road East
Oakville, ON L6J 1H3
Canada

ph: 416-716 9387 Cell
fax: 905-845 0024
alt: 1-888-413 0184 Office

askkingsley@gmail.com

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Mortgage Policies

Your Guidline to be better mortage approval
  • Properties Valued over $1m  - 

    Points to consider:

    a) Loan-to-value

    Most Lenders have a policy called a “Sliding Scale” to limit the loan-to-value on properties in excess of $1m.  Lenders begin their sliding scale at different values according to their individual policies while also having various loan-to-values based on a tiered amount. 

    Example:

    Property value of $1,500,000

    Lender begins Sliding Scale at $1m

    Tier: 80% of the first $1m; 50% of the amount exceeding $1m

    $1,000,000 x 80% = $800,000

    $   500,000 x 50% = $250,000

    Based on a purchase price of $1.5m, the maximum mortgage financing is $1,050,000 which is LTV = 70%.

    b) Specialized Mortgage Program – Non-resident, Stated income ( BFS ), etc

    When applicants are approved under a specialized program such as Stated Income or Non-resident, a maximum mortgage amount normally appliesas does a Sliding Scale at a reduced loan-to-value.

    Example:

    Property value of $1,500,000

    Lender begins Sliding Scale at $1m

    Tier: 65% of the first $1m; 50% of the amount exceeding $1m

    $1,000,000 x 65% = $650,000

    $   500,000 x 50% = $250,000

    Based on a purchase price of $1.5m, the maximum mortgage financing is $900,000 which is LTV = 60%.  This is due to the use of a Specialized Mortgage Program.  Some Lenders cap the mortgage amount under this program at $750,000 as a maximum mortgage while others offer higher amounts. 

    c) Mortgage Insurer Guidelines

    Under the new Federal mortgage guidelines, an applicant purchasing a property in excess of $1m is not eligible to apply for mortgage insurance.  In other words, this applicant must have at least 20% down payment.  An increase in the down payment may be required, depending on the specific file itself.

Have Questions?

New Comer To Canada

-        Program for individuals who have arrived in Canada within the last 5 years and have landed immigrant status

-        Individuals with a “9” SIN along with a valid work permit are eligible for 5% down payment

-        Maximum purchase price is $1m

-        Minimum 3 months of full time employment in Canada is required

-        Must have completed probationary period

-        If you are coming to Canada under a Corporate Relocation Program, your employment can be accepted without the 3 month employment requirement

-        5% - 20% down payment required depending on how long you have been in Canada and availability of credit references

Non- Resident Program

-        Program for individuals who are non-residents of Canada

-        Minimum 35% down payment required

-        Must be held in a Canadian bank account a minimum of 45 days before closing 

-        Maximum loan amount will depend on the Lender that approves the file

Completing The Transaction

-        At least 15 days before your closing date, you will need to come to Canada to sign all the required documentation

-        Completing your transaction via Power of Attorney is not accepted

 

Sotheby's International Realty® is a registered trademark licensed to Sotheby's International Realty Affiliates, Inc. Each Office Is Independently Owned And Operated.

 

Sotheby's International Realty Canada, Brokerage.

 

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Sotheby's International Realty Canada
125 Lakeshore Road East
Oakville, ON L6J 1H3
Canada

ph: 416-716 9387 Cell
fax: 905-845 0024
alt: 1-888-413 0184 Office

askkingsley@gmail.com