Minimum Down Payment for Income Property (Duplex, Triplex, Fourplex, Multiplex)

Duplex down payment

Here is what I believe to be one of the greatest advantages of a duplex. The minimum down payment for the owner-occupant is only 5%. In fact, when it comes to down payments, the duplex is identical to a house or a condo. This means that at the time of purchase, if you plan on living in the building, the down payment will be 5% of the sale price for a purchase insured with a mortgage insurer (CMHC, Genworth, Canada Guaranty). However, if you do not intend to live in the duplex or if you prefer to avoid mortgage insurance fees then the minimal down payment will be 20%.

Minimum down payment for a triplex

When you want to purchase a triplex as an owner-occupant, the minimum down payment, with mortgage insurance, is 10% of the purchase price. Once again, if you do not intend to live in the triplex or to avoid mortgage insurance fees, you must have a down payment of 20%.

Minimum down payment for a fourplex

The down payment rules for a fourplex are identical to those of a triplex. Therefore, if you plan on residing in the building the down payment is 10% of the purchase price, always through mortgage insurance. … LIRE LA SUITE

05 Nov

Bruno courtier hypothécaire Posted in Building Credit No comments

Mortgage Pre Approval: How To Get One?

Dernière mise à jour le January 29th, 2020

What is the purpose of mortgage pre-approval?

So you would like to buy a house soon. Maybe you called a real estate broker and they asked you if you had a pre-authorization before they started a visit with you? Don’t take offense, it’s very common and quite normal, and even to your advantage, here’s why.

Pre-approval as an element of negotiation

Imagine that you have a house to sell; good news, two identical offers for purchase have been made on your house! One of the two potential buyers is pre-approved by the bank and the other is not yet pre-approved. Which of the two offers do you most want to accept? Obviously, you would prefer to accept the buyer’s offer that is pre-approved by the bank.

We cannot say that this is a crucial element in the negotiation, but pre-authorization certainly gives you more credibility as a buyer.

Pre-authorization allows you to lock in a rate

A pre-approval is also useful to lock in a mortgage rate. Generally, it is possible to lock in this rate for 3 to 4 months. What’s interesting about a locked in rate is that you are protected if rates rise, and if rates decrease, you are entitled to that rate decrease.… LIRE LA SUITE

25 Jul

Bruno courtier hypothécaire Posted in Buying a House No comments

Fixed rate or variable rate mortgage

Dernière mise à jour le July 31st, 2018

Should I opt for a fixed rate or variable rate mortgage? Am I better protected if I opt for a fixed rate? Rates are so low now, is it worth it to take a fixed rate for the longest term possible? When we rely on historical data, we pay less with a variable rate, should I go for a variable rate? Here are several questions we’re often asked when we are mortgage brokers.

In addition to the fact that one is fixed and the other varies, there are big differences between the variable rate and the fixed rate. If you think you know all the differences, you might be surprised. I invite you to read the article, you could learn a lot!

Here are the things to take into account before deciding.

Variable rate: belief

I happened to find out that some of my clients thought that the bank had total control of the rate when it comes to the variable rate. As if the bank offered you a variable rate of 2% to attract as many customers as possible, and that one year later it raised its variable rate. This isn’t how it works.… LIRE LA SUITE