CONDOMinium FINANCING

This offering is unique to the marketplace for investors!

Some specific guidelines to high rise condo rentals are the following:

• Property must be based in Toronto (M1 postal code). 

• 1 bedroom (or more) properties only (no den with sliding door or bachelor units)

• Min credit must be 650 (for either RPM 85 or RPM 100)

• 75% LTV max 

*High rise condo building is defined as a building with 6+ stories

General rental guidelines are below and are unique to the marketplace:  

• Max 75% LTV

• General max is 4 properties (1 o/o and 3 rentals) BUT if you’re financing a subject rental property and it cash flows under the RPM 100 approach below, we will consider clients who have up to 11 properties (1 o/o and 10 rentals)

• 2nd mortgage program not eligible on rental properties

• Client cannot own non-subject properties with people who are not the transaction

• Condo can be in Holdco - max two owners/directors. 

• Business for self stated income for qualification available based on Bank statement approach

New Construction Purchases

If a client bought a pre-sale home/condo we can lend off of current appraised value so long as our mortgage amount doesn’t exceed original purchase price. 

For example, if you bought a pre-sale condo in 2016 for $300k and now the property is worth $400k. 75% of $400k is $300k maximum mortgage as original purchase price was $300K. This could result in clients getting refunded their deposits at closing! In essence zero down financing!

• Pricing range 4.5 to 5.25% with 1% lender fee. As of October 2019.

• High rise condo rentals only available in Toronto (M1 postal code) RPM 85: Traditional rental program

• No minimum credit score

• 85% offset on other rentals and need paperwork for all

• Max properties is 4 (1 o/o and 3 rentals)

• Max 45/50% GDS/TDS RPM 100: Cash flow approach

• 650 minimum credit score

• If the subject rental cash flows based on the rental income LESS stressed mortgage payment and property taxes then the subject property (and any other rentals owned) don’t affect your ratios

• All properties need to be disclosed and rental worksheet completed but no paperwork required on non-subject rentals

• Max properties is 11 (1 o/o and 10 rentals)

• Need to debt service principal residence at 45/50% GDS/TDS

• If subject property doesn’t cash flow then have to consider under RPM 85 only

NOTE: THE THOMPSON GROUP, OR IT'S EMPLOYEES ARE NOT MORTGAGE BROKERS  BUT WE WILL PUT YOU IN TOUCH WITH OUR MORTGAGE BROKER/REPRESENTATIVE THAT OFFERS THE ABOVE PROGRAM.