Mortgage Check Up

Competition is Alive

It’s good to know trustworthy people who help others reach their destination. I asked Rob over at Invis – Team Rob Regan-Pollock, to pass along a mortgage update. According to Rob:

“More lenders have reduced their fixed rates. Current Rates are approaching those seen earlier this year.”

Prop Wash

U.S. unemployment claims were up last month so the fears of an overheating economy and runaway inflation are receding fast. No one expects rate increases in the US until well into 2011 and possibly later if their economy continues to drag with weak employment numbers.

In the Neighbourhood

Locally, Surrey and Delta have harmonized with Vancouver to legalize secondary suite>.

The Basics

What lenders take into consideration when considering Secondary Suite rental income:

Conventional Mortgage (More than 20% down)
• – Aggressive lenders will use up to 80% of rental income from a secondary suite and add it into the principal & interest component of the mortgage which can significantly boost qualification.
• Note: not all lenders will offset rental income – offsets range between 50% to 80%.

Insured (Less than 20% down)
• Since April 19th CMHC have mandated a maximum of 50% of rental income from Secondary Suites be added to borrower income.
• Genworth and Canada Guarantee allow up to 100% of suite income to be added to borrower income in the GVRD, and Capital District
• This targeted towards the support of local eco-density initiatives.

Rule of thumb

• take 35% of suite rental income as Principal & Interest to estimate how much a secondary suite will add to a borrowers mortgage qualification when going high ratio insured.

Need a Check-Up

Give Rob Reagan-Pollack over at Invis – Team Rob Regan-Pollock a call – 604-879-2772. He or one of his top notch team will help you with the diagnosis.

Submitted with Permission Invis – Team Rob Regan-Pollock – Formatting YatterMatters

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