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.