If you want to get a little dirty, and live in a condo, the recycling room has more than enough boxes after a few trips every x days. All you need is a roll of duct tape.

Not many deals to be had now.

Right now, the idea is to accumulate cash.

I’ll tell you my family’s secret sauce when it comes to investing in commercial RE.

We are now on the verge of another cycle. Get cash and when the shit hits the fans, go out and offer on properties you like and offer say 50% or lower off asking without condition. The idea is not for them to accept the deal, but find those who are desperate.

We have found deals offering 10% or more on cap rate. Then wait and collect rent amassing more dry powder. When interest rate drops to the lowest level and market is expecting interest rate to rise, refinance it at the highest nominal value for the property and at the lowest rate. Lock it in. You cash out at that point and wait for shit to hit the ceiling again.

Then rinse and repeat. Again offering dimes on the dollar for valuable properties that generate good cash flow. Now you have 2 properties generating positive cash flow to pay down one property worth of mortgage/loan.

That’s how my parents made their wealth. It’s quite simple but you need to do a lot of homework.

I am planning to purchase a home on my own for the 1st time, can anyone tell me is mortgage 4.5x or 5x gross annual income at the moment? I have no debts and my credit score is in the 800s.

Do banks use line 14 (employment income) from t4 to calculate the mortgage?

Thanks in advance!

I think the general rule is 30% of gross income for your mortgage payments but that will need to be qualified at like 2% above current rates.
They will use line 14 from your T4 but would consider income from elsewhere if it's documented.
I strongly suggest going well under the max of what you will be approved for though unless you have undocumented income from side work. Banks don't care if you can eat well or take a vacation.

General guideline is your mortgage payments cannot be more than 33% of your total gross income, and mortgage + all other payments cannot be more than 43% of your total gross income.

Mortgage payments are calculated using a qualifying rate which is different depending on line of credit or installment mortgage, floating or fixed rate.

I don't do mortgages but have an excellent mortgage guy I work with here at BMO that I have connected a few other Revscene folks to and am happy to give you his contact info if you like - just PM me.

Cheers,
Mark

It also depends on how much your housing cost is, property tax, strata fees, heating cost based on sqf. You're fucked if the strata fee is like $600 a month. Also your dp, 20%? 25 or 30 year amortization.

Line 101 or just your noa amount if you're an employee

Curious for those of you with experience doing major renovations (i.e. down to the studs). What means of financing did you choose (e.g. construction loan, HELOC, etc.)? Property is a single detached home that is owned outright in Vancouver, but the house is in need of a major reno or tear down.

Legit way is construction loan, buddy guy Asian way is heloc. Pick your poison

I forgot to mention the baseline info for stress tests is available on the Canadian government website. It's a hilariously high number, like 1.5x what we felt comfortable paying, but it gives you an idea of if you will be approved for what you are looking at.

As i understand it, construction loans have higher borrowing costs?

No, Asians typically like to do things by the book especially if it costs more money.

Construction loans probably more expensive, and you have to pay to get inspectors to inspect every construction stage to write off so the bank will release the funds. You get money in steps, and not full control upfront unlike heloc

Think you have to define the scope of your project and that will tell you what you will need to do.

If you can live in the home and pick away at floors and varrying parts of it, you might be able to just use an existing LOC or cash..

If it’s an actual total gut or a tear down, that’s a much different thing and then yea, you’re gonna be talking to the bank and likely having to do everything to the fullest ie. permits, building permit, infrastructure upgrades, utilities, etc.

HELOC ususally has fine print that you can’t devalue your property, as it is used to back the loan. Aka nothing structural.

Construction loan is more complicated, costs more and is more of a pain in the ass. Saying that…
Possibly more secure with the steps involved? I have no idea on that part.

You forgot the ultimate asian way - the family bank.

gov asking for installments for tax :fuckthatshit:

no wonder people parked their money in RE

man, just went thru this whole housing thing.

risks
1) yes you get a mortgage, then go behind bank and do a tear down and build a new house. If you're caught, then they will call loan = u gotta pay. Loan / mortgage is based on value of an actual home, so you can't really tear it down and build.

My friends went thru that so they were scared shitless, then when they needed more money to finish, they had to borrow from family.

2) construction loan does have its loop hole, in Toronto, and back few years ago; as long as you have 1 wall (or part of a wall, or a main wall); then it's still considered a home. So what they did was kept 1 wall and built around that for their entire house. tHey didn't have to abide to certain inspections cause it was just an upgrade.

As for mortgage. If you read the vanocuver sun today; if you do variable = you stress test until you're at 7.9% at todya's rates, but if you're doing fixed, you only hvae to be stress tested until 6.7%
https://epaper.vancouversun.com/vanc...59149/textview

I suggest you go to TD bank, get a quote (as a bench mark) and immediately go to a mortgage broker to get you what you need.

It's time for me to renew my home insurance and this year, with no changes, TD wants to increase my premium by ~33%. It's time to go shopping around. How do y'all go about it?

Always shop around.

Check with brokers, BCAA and whatever affiliation you might have for cheaper insurance. Even your university... often they offer special pricing for alumni.

Do it online and get a quote in 5 min. They where way cheaper and did not care my tenant had a trampoline.

https://www.squareone.ca/

I use square for my condo too... they USED to be cheap was like $330 4-5 years ago... now it's nearly $600

I heard they really suck if you have to make a claim though? That's purely anecdotal, I haven't had to make one...

lots of calling around and emails

Everyone has raised their rates, you might get something 5-10% lower than what TD is quoting you but next year it'll be just as high if not higher.

Plus TD Needs your money now to pay it's Anti-money laundering fines!!!

Ive been watching townhouse prices in tri cities for last few months, i think the interest rates are finally starting to cause some damage

Lots of units sitting for months, this one for example, (may need zealty account to view - 2655 bedford st) and the price has been dropped for the 3rd time, 885k>835k over 4 months.
https://www.zealty.ca/mls-R2917728/4...-Coquitlam-BC/

Hopefully this trend continues into 2025

Cash is gonna be king soon!

Lots of $900-1Mil 2BR are dropping by 10%