Need advice from Canadian home owners
 

I would like to buy a house that was just built on waterfront property. I have bad credit and I know financing is going to be an issue. I would like to give a 50% down payment to remove any risk the creditors may have.

Is this realistic?

The house is 189,900 and I have $100,000 cash for a downpayment.

Thanks guys

you shouldnt have a problem..dont stop if your bank turns you down..there are many options..especially with that kind of downpayment

I guess thats what I am trying to find out.. what are those options? There is no risk to them because the house is new with no problems on a prime waterfront lot with huge downpayment.

This is the info on the house.
http://www.mls.ca/PropertyDetails.as...ertyID=2804050

if u are worry, try the smaller banks. maybe caisse pop desjardin, hsbc, nbg, laurentian bank.

if that doesnt work, try insurance companies.

if that doesnt work.. well sorry to say, ur credit is that crappy.

I dont think my creidt is that bad.. I mean I do have a credit card and was able to buy a 20,000 car but the issue really is the fact that I am self employed and I write everything off. So my net income is pretty sad to say the least.

looks like a nice little cosy place, shame about your credit but im sure with that kind of downpayment you should be able to get someone to work with you on it.


:thumbsup

you have bad credit but you have a 100k cash to put down on a house?

Fix credit first - then get a home

:thumbsup

You should be able to do a "stated income" loan if it's anything like the US. Your interest rate will be higher than someone with A credit rating, but that doesnt seem to be an issue for you.

That link has an email link to the realtor, just tell him. It's his income to make the deal after all, not ours :Graucho

oh yeah, if its gonna be ur first house, see if u can get a deal thru the cmhc

i think its .ca or .com

whatever, u do ur research.

I don't need to go thru CMHC if I give a deposit of 25% or more.

If the big banks decided not to deal with you, try out the credit unions or caisse populaire. Usually you'll find people much more accomodating.

Although I've yet to hear of any bank turn down a loan on a 50% deposit. In the event you default, not only do they have the house, but 50% of the house's value in cash.

Last I heard was that when you put down 35% down, you don't need to do a credit check (well I'm sure they do, but with that amount down you're considered very low risk). If you're considering putting 50% down, you should have no problem.

I'm also in the same boat, poor personal credit since my company gets all the income and I only pay myself as needed. Looking to get a house in February/April so I'll find out what happens then.

WG

I have a friend who is a mortagage broker.

Putting half down makes you gold.

Hit me up, or send me an email, and I will put you in touch.

i buy lots of properties with vendor financing.
no matter how bad off you are, somebody is always in worse shape. anyway, with that much down payment you will have no problem.. find a mortgage broker in your area..

Bank of Montreal has a tool to show you how much you can afford based on your monthly income.

http://www4.bmo.com/personal/0,4344,35649_36691,00.html

Click the link that says "how much can I afford".

With $100,000 down you will have no problem, but they will check to see that the money you have is actually money you have saved over a period of time and not a gift or loan from someone else.

Mortgage broker is exactly what you need. You'll get a better rate and won't have ANY problems with 50% down. There's no risk to the creditors because even at auction they can recoup 50% from land no problem.

I have a good Mortgage broker in Western Canada. She can help you all over Canada though. ICQ me (97-37-47-80) if you want her number.

The realestate broker gave me a phone number to his mortgage broker so I will call tomorrow and see how it goes. I wanted to see if it was even possible before I called and it should be cool.

Thanks guys

If you are serious about buying this property, give me a shout and I will hook you up with my mortgage broker.

I refer a ton of adult webmasters to this guy and he can perform fucking miracles.

DH

Listen to DH...... There are a shitload of secondary lenders who will kiss your ass with that kind of downstroke:thumbsup They will want to verify that you actually have the money, and not have borrowed it:2 cents:

Thanks bro.. I may just take you up on that :thumbsup

That wont be a problem.

Funny, I think the HSBC is the largest bank in the world.

You could try Home Trust Mortgage. They tend to deal a lot with people turned down by banks and other mortgage companies or those that are self-empoyed. Thier interest rates aren't sky high but they do require at least 25% down I believe to get around the Canadian Home Mortgage Insurance thing.

I bought a house for 35% down self employed, same problem as you. TD Canada trust wanted 50, i told their rep where to stick it. Royal Bank bought it, Scotiabank bought it, Credit Union bought it too (thats all i worked on). They will indeed try and cut each others throats for a 35% down deal much less a 50% one, so make sure you get them to compete on rates (their posted rates are bullshit).

Good luck

Damn thats very good news.

I can prove to the banks that I have been paying $1300/mth in rent for the past few years.. that should also help.

Be advised that if you are a foreigner (and your profile location indicated California) that Canada has a significant foreign withholding tax, I think about 30% on property sales.

Actually I am Canadian.. When I registered I was renting a place in Valencia.. damn I should change my info.

hsbc will take mortgages that are more risky.
we bought semi commercial at a discount with them when the big banks turned it down

anything over 20% down of what the bank appraises the property at is usually fine without chmc or other extra financing insurance charges - but remember it's the banks value of it - not what you paid for it. often they are the same or similar though - but not necessarlily - my bank appraised my home at 40K more than I paid - usually it's way less but i bargain and hagle like crazy.

Is that the list price? You should NEVER pay the list price.

Here's my :2 cents:
Talk the owner down to $150 and ask the owner to finance the rest...? People will agree to things even THEY didn't think they would when they can smell the money...

Here's good professional advice that I received, and didn't listen to (to my detriment): Get a real estate lawyer, and have the home professionally inspected.

Thanks for all the tips guys.. the more info I get the better position I am in.

My credit wasn't great, and for records all I really had was bank statements, and with some creative financing my broker got me my first place. I have 2 homes now. But I paid out the ass for not having great credit, and I had to put down some big $ deposit.

50% down you should have little, if any problem

That's what I keep hearing.. I really hope this is the case. :winkwink: