Again mortgage question
 

Is it real to have good rate (5.15-6.0%%) mortgage from bank or any financial institution for newcomer to Canada when I want to buy a profitable business with property and can pay 10-15%% downpayment?

Re: Again mortgage question
 

LOL

Ready for this.............................I had a guy come in yesterday (I sell new homes) Told me he'd been offered 4.1% YES 4.1% on a 40 yr ammortisation 5yr closed!!!!
I said if thats true bite the buggers hand off.

Seriously I can get 4.75% if you want to know more PM me:thumbup:

Re: Again mortgage question
 

Hi butch will you please explain these mortgage terms or should i say 'terminology' what is a ammortisation? and what does 5 year closed mean? :eek:
i am planning on buying when we get to calgary hopefully soon and would like to know the know so to speak :cool:

Re: Again mortgage question
 

If you're mortgaging to finance a business, then you'll probably have to pay a commercial mortgage rate. Prime plus 1% is a good starting point.

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Could you please to explain what does it mean

Re: Again mortgage question
 

Sorry, bank base rate, plus an additional 1% on top.

Also worth noting, that if the bank determines you need a commercial mortgage, this affects your property insurance too. As well as liability cover (for the business), your property insurance will be commercially rated (and therefore more expensive than residential).

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I'm seeing 4.1% now as well.

The prime rate is the interbank lending rate as set by The Bank of Canada, this is variable and is currently 4.75%, so prime + 1% would = 5.75%.

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And do you think that newcomer without credit history in Canada can apply for this mortgage?

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Ammortisation is the full term of the mortgage. eg 25yrs
5yr closed means you are obliged to keep the mortgage for a minimum of 5yrs or you'll pay a penalty (the closed part means that your also tied in at the initial % eg 4.75)
5yr open would mean that the rate was variable and you could close at anytime (eg start at 4.75 falls to 4.1 you think it could climb again so close at 4.1, equally it could climb to 5.25 however you believe that it will continue to climb so close at 5.25)

Any clearer

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So if you close at 5.1, would it stop at that rate for the 5yrs??
also if that is the case, say the rate goes down to 4.1, could you ask for it to be reduced?? or are you stuck at the 5.1 for the full 5yrs??:unsure:

Re: Again mortgage question
 

Hi us too - we've just been through a mortgage broker to help us get a good deal as the banks weren't offering us anything great and we got 4.150%, 40 years, 5 year closed. Good deal me thinks.

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Yep, ever heard of a fixed rate mortgage:p

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VERY good deal.
Especially if its going to kick start the housing market again. I dont mean increased selling prices, I just mean reduce inventory (new and resale).

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Let me get this straight. I can get a fixed rate mortgage in Canada at 4.15% and a fixed term saving rate in the UK of around 5.5% (net).

So if I invest my savings in the UK I can use the interest to pay my Canadian mortgage and have spare money to boot. It all sounds too good to be true!

Whats the catch?

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The catch is that is you have enough money to be able to make enough interest to pay your mortgage, why are you taking a mortgage in the first place? You'd have to borrow roughly what you already have anyway. Plus you're at the mercy of exchange rates.