Wait for the house prices to go down .There is a crah expected anytime since the house prices are too much now. Expect atleast a 75,000 $ drop in prices.

http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/20060510/housing_prices_060510/20060510?hub=TopStories

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You know you are a desi when ........ You spew forth the virtues of India, but don't want to live there...............You've never had a tanning salon membership

Hi loser,

Could you please let us know where you got this news as we are also contemplating whether to buy a house now or not?

Thanks.

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Originally posted by Pramod Chopra

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Originally posted by goingtocanada


Hello Pramod ji,

Thanks for your reply. The reason for our interest in this duplex is that 1st this is a brand new and still at lower side compare to any other duplex or house we have seen in the market. The Realtor is saying that we can put the condition with subject to mortgage approval the market is very hot in BC and its very hard to find the house. The reason I am interested in duplex with 4 bed is that I am planning to rent the basement for approx 850PM and if mortgage for the house is 2200 then I only pay 1150 pm plus half utility and property tax etc. That's is the current trend in Vancouver. So do you think its a good investment if I get approved for mortgage. Please help me clear some more.

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If you rent the basement for $850 pm then does that include utilities or are they separate? Because if they are separate, then the tenant should be willing to pay around $1000 pm. If that's the case, then you certainly would be covering approximately 35% - 40% of house expenses from your basement income.

Secondly, we consider on average that a house will bring only 10 months rent. The 2 months rent margin is for vacant property and other expenses related to tenants. Hence you should consider this fact also.

I would suggest you to get your self pre approved and find out how much you can get approved for and the conditions you would have to meet before putting an offer. This does not take more than a day or two and would certainly help you in deciding about the monthly expenditure you would have to do on your housing. As you have not mentioned about your self employed status or income level, I am doubtful of your getting best rates under self employed program and as I mentioned earlier, this could mean that your mortgage payments could be much higher.

If you need my help in pre approval, then you can apply on line on my website with details and I can let you know if you would qualify for best rates or not. Alternatively, email me ( you can get my email address from my website) with your income, job and down payment details and I would let you know what rates and mortgage payments to expect in your scenario.

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Quote:

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Originally posted by Pramod Chopra

Quote:

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Originally posted by goingtocanada


Hello Pramod ji,

Thanks for your reply. The reason for our interest in this duplex is that 1st this is a brand new and still at lower side compare to any other duplex or house we have seen in the market. The Realtor is saying that we can put the condition with subject to mortgage approval the market is very hot in BC and its very hard to find the house. The reason I am interested in duplex with 4 bed is that I am planning to rent the basement for approx 850PM and if mortgage for the house is 2200 then I only pay 1150 pm plus half utility and property tax etc. That's is the current trend in Vancouver. So do you think its a good investment if I get approved for mortgage. Please help me clear some more.

---

If you rent the basement for $850 pm then does that include utilities or are they separate? Because if they are separate, then the tenant should be willing to pay around $1000 pm. If that's the case, then you certainly would be covering approximately 35% - 40% of house expenses from your basement income.

Secondly, we consider on average that a house will bring only 10 months rent. The 2 months rent margin is for vacant property and other expenses related to tenants. Hence you should consider this fact also.

I would suggest you to get your self pre approved and find out how much you can get approved for and the conditions you would have to meet before putting an offer. This does not take more than a day or two and would certainly help you in deciding about the monthly expenditure you would have to do on your housing. As you have not mentioned about your self employed status or income level, I am doubtful of your getting best rates under self employed program and as I mentioned earlier, this could mean that your mortgage payments could be much higher.

If you need my help in pre approval, then you can apply on line on my website with details and I can let you know if you would qualify for best rates or not. Alternatively, email me ( you can get my email address from my website) with your income, job and down payment details and I would let you know what rates and mortgage payments to expect in your scenario.

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Originally posted by goingtocanada


The monthly rent plus half utility is the trend. Now the as per preapproval is I went to one of the broker for pre approval. He told me that he will get me the loan for 5 yr or 3 yrs 5.40 and can also get me the line of credit for prime plus 2% he said that I can use the LOC for down and pay 20%down and then my payments will be 2200 Mortgage plus property tax etc and 250 for interest payment on LOC. He said I can payline of credit when ever I have extra cash etc. Is this normal practice , he said by doing this I don't have to pay insurance fee to CMHC and its fast and easy to get approved if put 20%

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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada

Hello Pramod Chopra,

Email sent to you

Thanks

Quote:

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Originally posted by Pramod Chopra

Quote:

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Originally posted by goingtocanada


The monthly rent plus half utility is the trend. Now the as per preapproval is I went to one of the broker for pre approval. He told me that he will get me the loan for 5 yr or 3 yrs 5.40 and can also get me the line of credit for prime plus 2% he said that I can use the LOC for down and pay 20%down and then my payments will be 2200 Mortgage plus property tax etc and 250 for interest payment on LOC. He said I can payline of credit when ever I have extra cash etc. Is this normal practice , he said by doing this I don't have to pay insurance fee to CMHC and its fast and easy to get approved if put 20%

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The mortgage agent has told you that he would get you approval then it is fine. However, you should insist on PRE-APPROVAL and not approval after you put offer so that you have some cooling time and can discuss the conditions of the pre-approval. Secondly, the rates seem to be a bit more than what you should be getting. You can check best rates as of date on my website as per the address give in my signatures. Thirdly, you have to pay 25% down AND NOT 20% down payment to avoid CMHC fees. If he gets you a line of credit at prime plus 2% then on a $40,000 LOC you would be paying close to $267 in interest only, however, generally the banks when calculate the GDS and TDS, they consider that you are supposed to pay minimum 3% of your LOC and that payment would be $1200 pm (for calculation of TDS) and that may affect your mortgage qualification. In any case, it is making your total interest outflow for your mortgage much more as the LOC would be at 8% or more and it is YOU who has to pay that LOC with interest. Even with the numbers you mentioned, your total monthly expenditure is around $2700 plus half utility.

Its your call as I do not have data about your income or affordability to comprehend exact situation. I can help you more if you send me an email with your details as I would not like you to put your income / expense figures here.

Good Luck.

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Quote:

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Originally posted by goingtocanada

Hello Pramod Chopra,

Email sent to you

Thanks

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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada