I want to do more business with GTAM members! | GTAMotorcycle.com

I want to do more business with GTAM members!

black_CG2

black_CG2

Well-known member
Hello everyone,

I hope you are enjoying this beautiful snowy Friday. First of all, I want to say thank you to all the members for helping me to battle through my depression towards end of 2018. I have a full time job now, real estate gig and mortgage business on the side. I am super happy and I feel content. I don't even have time to feel depressed anymore because I am working, meeting people and learning new things. So again, thank you!

If you already have a mortgage broker, then great! If not, I would love to do mortgage for you. I will be honest that a lot of "low rates" being advertised, may not always be true. It is just a marketing tactic to lure you in. I can definitely get you lower rate if conditions are met. Simple enough. Why should you choose me over traditional banks? Well, I work for Mortgage Outlet and we have access to many lenders including banks, credit unions, private lenders etc. Also, it is in my best interest to find you lowest rate according to your circumstances by doing the work with lenders. I have been working hard, learning business and gaining trust within my community. But I did not forget my motorcycle family.

For real estate gig, I am helping a real estate investor in Toronto to build his business and in the process learning it myself. This includes AirBnb co-hosting/property management. That being said, if you or someone you know, needs co-hosting/property management, give me a shout! Our lawn mowing business just made us hungrier and we want to keep going.

Cheers GTAM family! Enjoy your weekend!

Muhib
 
Good to hear. I recall your posts back then.

That reminds me, I need to reply to your pm lol

Sent from my SM-G930W8 using Tapatalk
 
black_CG2 said:
For real estate gig, I am helping a real estate investor in Toronto to build his business and in the process learning it myself. This includes AirBnb co-hosting/property management. That being said, if you or someone you know, needs co-hosting/property management, give me a shout! Our lawn mowing business just made us hungrier and we want to keep going.
Click to expand...

Congrats on the new gig. A question since you're in the biz:

1. From an investment standpoint, how difficult is it to obtain a mortgage on a second property for the sole reason of renting it out on AirBnB or short term rentals? I would imagine the lending company has much stricter requirements / higher LTV ratio etc but I'm not sure if this is the case and how they would go about doing the income numbers for a investment property.

2. Assuming it's a 1bedroom in the core, does the lender factor in potential cashflow into the equation (if so, what is the guideline they use or do you just assume market rental rate), or are they basing the mortgage calculation strictly on person income?
 
Dresden said:
Congrats on the new gig. A question since you're in the biz:

1. From an investment standpoint, how difficult is it to obtain a mortgage on a second property for the sole reason of renting it out on AirBnB or short term rentals? I would imagine the lending company has much stricter requirements / higher LTV ratio etc but I'm not sure if this is the case and how they would go about doing the income numbers for a investment property.

2. Assuming it's a 1bedroom in the core, does the lender factor in potential cashflow into the equation (if so, what is the guideline they use or do you just assume market rental rate), or are they basing the mortgage calculation strictly on person income?
Click to expand...
Given the distinct possibility that short-term rentals instantly dry up through municipal or condo rule changes, I would be shocked if they included any income in the calculation if you tell them you are going that route. If you tell them you are buying it to rent out (and leave out the long-term/short-term comment) they probably include some of the rental income in the calculation. Currently, your plan is in contravention of City of Toronto regulations and some condos (eg. CityPlace or at least part of CityPlace) recently banned all rentals less than three months long.
 
if you have 20% down on the second place you can avoid mortgage insurance
that is likely to be the qualification stumbling block for a mortgage on the rental
if you need mortgage insurance they are not likely to qualify rental income unless you have a lease to show them
 
Congrats OP!
Good to hear that you are doing better.

As for the 2nd property question:
What about going old-skool and remortgaging your principal residence to pay for the investment property?
A know that it goes against what most people say to do, but that's how the immigrants that came here did it. Just my $0.02

Sent from my Pixel 3a using Tapatalk
 
Dresden said:
Congrats on the new gig. A question since you're in the biz:

1. From an investment standpoint, how difficult is it to obtain a mortgage on a second property for the sole reason of renting it out on AirBnB or short term rentals? I would imagine the lending company has much stricter requirements / higher LTV ratio etc but I'm not sure if this is the case and how they would go about doing the income numbers for a investment property.

2. Assuming it's a 1bedroom in the core, does the lender factor in potential cashflow into the equation (if so, what is the guideline they use or do you just assume market rental rate), or are they basing the mortgage calculation strictly on person income?
Click to expand...

Ans to #1: Ideally, you would put the monthly rent there for similar listings. Lenders hate "STR" just because to them it is uncertain. But if you buy your property right, your place would be occupied for most of the time. Also for Toronto, unfortunately, you would require minimum 40% down payment in condos to break even from regular monthly rent. But yes, you could definitely make more with AirBnB. It is not difficult to obtain mortgage on a second property provided you have 20% down, secured employment and you are looking to buy in a decent area.

Ans to #2: They use applicant's income AND market rental rate for the property you are interested.

Joe Bass said:
Congrats OP!
Good to hear that you are doing better.

As for the 2nd property question:
What about going old-skool and remortgaging your principal residence to pay for the investment property?
A know that it goes against what most people say to do, but that's how the immigrants that came here did it. Just my $0.02

Sent from my Pixel 3a using Tapatalk
Click to expand...

Thank you, Joe! I have not forgotten my desire to learn more about reno work from you, btw! And yes, remortgaging your principal residence to pay for investment property works too. Is yours fully paid off? Congratulations! If you are interested, I could get you a good rate.

If you guys need access to REIN (REIN Canada) report for 2018-2023, I am more than happy to email you the PDF. No spam, No BS. My integrity in motorcycling community is more important than anything else. According to that report, Ottawa region and Hamilton region is supposed to do really well in terms of investment. Need really deeeep pockets for Toronto.
 
I'm planning on doing this once I return from BC. Last I checked the lender will only take 50-70% of the rental and use that toward the carrying costs.

If you buy a single residence unit, I've seen many people just tell the lender that they'll rent out their existing property, and live in the new property to get around the rules. With rentals you may need a higher down payment, and of course mortgage terms may be more onerous...but @black_CG2 would have more insight into this.

We are currently pumping additional funds into the mortgage so we can build up our equity, and when I come back from BC utilize a HELOC as a down payment on a new rental property. This would allow us to write off the interest on the HELOC, as well as other carrying costs on the unit.

Our last place was a 6-plex, which was great in terms of cash flow, and I'd be looking ideally at a 3-plex because you can still qualify for residential mortages, hydro, enbridge, etc also. They changed the rules where before it was a 7-unit property was commercial, and lowered it to 4-unit properties now being the threshold for commercial properties. That's why you see 3-plex units shoot up in price, they are still attainable with residential rates and regulations.
 
mimico_polak said:
I'm planning on doing this once I return from BC. Last I checked the lender will only take 50-70% of the rental and use that toward the carrying costs.

If you buy a single residence unit, I've seen many people just tell the lender that they'll rent out their existing property, and live in the new property to get around the rules. With rentals you may need a higher down payment, and of course mortgage terms may be more onerous...but @black_CG2 would have more insight into this.

We are currently pumping additional funds into the mortgage so we can build up our equity, and when I come back from BC utilize a HELOC as a down payment on a new rental property. This would allow us to write off the interest on the HELOC, as well as other carrying costs on the unit.

Our last place was a 6-plex, which was great in terms of cash flow, and I'd be looking ideally at a 3-plex because you can still qualify for residential mortages, hydro, enbridge, etc also. They changed the rules where before it was a 7-unit property was commercial, and lowered it to 4-unit properties now being the threshold for commercial properties. That's why you see 3-plex units shoot up in price, they are still attainable with residential rates and regulations.
Click to expand...

Looking forward to grab beer with you in Mid March!
 
Bump!
- 1.99% interest fixed 5 years term for high ratio
- 2.09% interest fixed 5 years term for 1$Million+ Mortgages

Also, many lenders that are willing to work to find optimal solutions.

PM me for your mortgage needs. Save money and go buy motorcycle/motorcycle parts! :)

Mods, if there is a rule I need to follow please let me know. For example, what are the requirements to become GTAM sponsor etc.
 
black_CG2 said:
Bump!
- 1.99% interest fixed 5 years term for high ratio
- 2.09% interest fixed 5 years term for 1$Million+ Mortgages

Also, many lenders that are willing to work to find optimal solutions.

PM me for your mortgage needs. Save money and go buy motorcycle/motorcycle parts! :)

Mods, if there is a rule I need to follow please let me know. For example, what are the requirements to become GTAM sponsor etc.
Click to expand...
Out of interest, what percentage of people are taking out seven figure mortgages? I know financially it could be a good option for some people, but I couldn't do it. Watching that ugly interest payment every month would drive me nuts.
 
GreyGhost said:
Out of interest, what percentage of people are taking out seven figure mortgages? I know financially it could be a good option for some people, but I couldn't do it. Watching that ugly interest payment every month would drive me nuts.
Click to expand...
A small percentage but there are some. They also combine 2/3 properties in seven figure mortgages.
 
So the bank called again today with an offer. More complicated than the last one. They are running some numbers and sending them tomorrow for me to look at them.

When we bought the house two years ago I was super unimpressed by our mortgage broker as he got us 3.5% variable.

Bank called a year in and offered 2.72% fixed for 4 years (no change in term). I didn't think there was any realistic chance on interest rates plummeting and over the term, I would save almost six figures so I signed that in Feb 2020. Doh.

Todays offer was using LOC prepay 20% now, 20% after renewal date (mid feb), then pull a second mortgage to pay off LOC as that rate should be ~1.7%. I asked what the penalty would be to break main mortgage to get it to a lower rate and it is solidly into five figures. Doh. Obviously I will save some interest but I suspect the double mortgage will be a cash flow crunch so I'll need to see the numbers to see if we can swing it. It would hammer the principal if we could get it done.
 
Spoke with my broker today also. We are 1 year and 4 months into the mortgage fixed at 2.79%. When I spoke with him in August it would cost me 8k cash, and another 7k or or so added onto the mortgage to break and go to 1.79% approximately. Now that the rates are even lower, he said it would probably be closer to 15-18k total to break the mortgage and I'm better off just pre-paying more and I'll come out ahead in terms of interest saved.
The one time in my life I go for variable...who knew they would've gone lower than 2.79% at the time. Dammit.
 
You must log in or register to reply here.

Back
Top Bottom