Comments on: Required Down Payment Reduced from 25%->20%! http://www.milliondollarjourney.com/required-down-payment-reduced-from-25-20.htm Building Wealth through Saving and Investing Sat, 20 Mar 2010 05:13:35 -0400 http://wordpress.org/?v=abc hourly 1 By: Weekend Reading - New Year Edition 2008 | Million Dollar Journey http://www.milliondollarjourney.com/required-down-payment-reduced-from-25-20.htm/comment-page-1#comment-21577 Weekend Reading - New Year Edition 2008 | Million Dollar Journey Fri, 04 Jan 2008 07:30:58 +0000 http://www.milliondollarjourney.com/required-down-payment-reduced-from-25-20.htm#comment-21577 [...] writes about the Top 5 Mortgage Trends of 2007.  Among them include how the down payment requirement for a conventional mortgage dropped from 25%->20% and the introduction of longer amortization [...]

[...] writes about the Top 5 Mortgage Trends of 2007.  Among them include how the down payment requirement for a conventional mortgage dropped from 25%->20% and the introduction of longer amortization [...]

]]> By: The Smith Manoeuvre - A Wealth Strategy (Part 2) - Million Dollar Journey http://www.milliondollarjourney.com/required-down-payment-reduced-from-25-20.htm/comment-page-1#comment-7096 The Smith Manoeuvre - A Wealth Strategy (Part 2) - Million Dollar Journey Mon, 25 Jun 2007 21:54:04 +0000 http://www.milliondollarjourney.com/required-down-payment-reduced-from-25-20.htm#comment-7096 [...] The reason is that most of the re-advancable mortgages out there REQUIRE 25% down. The mortgages that do NOT require 25% down will charge an extra CMHC fee. I believe that the Canadian government is in the process of introducing legislation that will reduce the 25% down payment requirement to 20%. [...]

[...] The reason is that most of the re-advancable mortgages out there REQUIRE 25% down. The mortgages that do NOT require 25% down will charge an extra CMHC fee. I believe that the Canadian government is in the process of introducing legislation that will reduce the 25% down payment requirement to 20%. [...]

]]> By: vr6man22 http://www.milliondollarjourney.com/required-down-payment-reduced-from-25-20.htm/comment-page-1#comment-3409 vr6man22 Mon, 30 Apr 2007 01:37:04 +0000 http://www.milliondollarjourney.com/required-down-payment-reduced-from-25-20.htm#comment-3409 Anyway I am stuck with them for now, but am looking at different options for use with the SM. thanks for all your help everyone. Anyway I am stuck with them for now, but am looking at different options for use with the SM.
thanks for all your help everyone.

]]> By: Mike http://www.milliondollarjourney.com/required-down-payment-reduced-from-25-20.htm/comment-page-1#comment-3406 Mike Mon, 30 Apr 2007 00:58:35 +0000 http://www.milliondollarjourney.com/required-down-payment-reduced-from-25-20.htm#comment-3406 vr6 - I think you just have to be patient and get the HELOC raised when you can. Banks work a certain way and that's the way they work. vr6 – I think you just have to be patient and get the HELOC raised when you can. Banks work a certain way and that’s the way they work.

]]> By: vr6man22 http://www.milliondollarjourney.com/required-down-payment-reduced-from-25-20.htm/comment-page-1#comment-3382 vr6man22 Sun, 29 Apr 2007 17:17:32 +0000 http://www.milliondollarjourney.com/required-down-payment-reduced-from-25-20.htm#comment-3382 that is not what I'm asking. I asked the bank when the closing date happens, (firm date now) basicly can we up the Heloc for more cause the house is NOW worth more. Although the six month term would be a good idea , I wouldn't think to do this with the low rate through the builder i have. thanks that is not what I’m asking.
I asked the bank when the closing date happens,
(firm date now) basicly can we up the Heloc for more cause the house is NOW worth more.

Although the six month term would be a good idea ,
I wouldn’t think to do this with the low rate through the builder i have. thanks

]]> By: David http://www.milliondollarjourney.com/required-down-payment-reduced-from-25-20.htm/comment-page-1#comment-3380 David Sun, 29 Apr 2007 16:28:47 +0000 http://www.milliondollarjourney.com/required-down-payment-reduced-from-25-20.htm#comment-3380 So you are asking the bank to increase the loan value of a home that is not ready for occupancy. Since they have no certainty on the completion, or whether the finished value will be equal to the proposed value (i.e. will the finished basement be complete, etc.) You are asking them to increase the value on something that does not really exist. In addition, until a home is occupied, most lenders consider the sale price to be the appraised price. Many others have asked this question in other fora before, and found the same answer. Thus, I would think that they are being reasonable and consistent with others' experience. I'd suggest that you look at a six month term, and renegotiate the loan at that time So you are asking the bank to increase the loan value of a home that is not ready for occupancy. Since they have no certainty on the completion, or whether the finished value will be equal to the proposed value (i.e. will the finished basement be complete, etc.) You are asking them to increase the value on something that does not really exist. In addition, until a home is occupied, most lenders consider the sale price to be the appraised price. Many others have asked this question in other fora before, and found the same answer. Thus, I would think that they are being reasonable and consistent with others’ experience. I’d suggest that you look at a six month term, and renegotiate the loan at that time

]]> By: vr6man22 http://www.milliondollarjourney.com/required-down-payment-reduced-from-25-20.htm/comment-page-1#comment-3354 vr6man22 Sun, 29 Apr 2007 03:40:31 +0000 http://www.milliondollarjourney.com/required-down-payment-reduced-from-25-20.htm#comment-3354 new home , not finished yet. NOT recently purchased (long delays) price has gone up 25-30 k, and Rbc Lady said that "they only give the Heloc on the purchase price and not the appriased value, but in 3-4 months after you move in, if you want we can re due the papers , get an appraise on the house and up the heloc BUT you pay the fees." So not sure how to approach the bank now. new home , not finished yet.
NOT recently purchased (long delays)
price has gone up 25-30 k, and Rbc Lady said that “they only give the Heloc on the purchase price and not the appriased value, but in 3-4 months after you move in, if you want we can re due the papers , get an appraise on the house and up the heloc BUT you pay the fees.”
So not sure how to approach the bank now.

]]> By: David http://www.milliondollarjourney.com/required-down-payment-reduced-from-25-20.htm/comment-page-1#comment-3277 David Fri, 27 Apr 2007 20:05:44 +0000 http://www.milliondollarjourney.com/required-down-payment-reduced-from-25-20.htm#comment-3277 My experience was opposite vr6man22. When I went to RBC to change my mortage product about 2 years into a five year term, I took a copy of our Tax Assessment, showing the increase since two years previous. She not only accepted my valuation, she further adjusted it for the increase in value that had occurred over the 9 months post appraisal. It may have helped that I have had a lengthy relationship with the Bank, and have worked with this individual on many of the products I have purchased, so they have a good comfort level with my banking habits. I echo Mike's question -- are you in a recently purchased home that has appreciated between purchase and occupancy? If so, and you are a new customer, the bank may wish to see your payment habits before committing a greater level of loan, especially as you may be using a 'paper profit' as security. My experience was opposite vr6man22. When I went to RBC to change my mortage product about 2 years into a five year term, I took a copy of our Tax Assessment, showing the increase since two years previous. She not only accepted my valuation, she further adjusted it for the increase in value that had occurred over the 9 months post appraisal. It may have helped that I have had a lengthy relationship with the Bank, and have worked with this individual on many of the products I have purchased, so they have a good comfort level with my banking habits.

I echo Mike’s question — are you in a recently purchased home that has appreciated between purchase and occupancy? If so, and you are a new customer, the bank may wish to see your payment habits before committing a greater level of loan, especially as you may be using a ‘paper profit’ as security.

]]> By: Mike http://www.milliondollarjourney.com/required-down-payment-reduced-from-25-20.htm/comment-page-1#comment-3269 Mike Fri, 27 Apr 2007 14:27:51 +0000 http://www.milliondollarjourney.com/required-down-payment-reduced-from-25-20.htm#comment-3269 Why would they use the purchase price unless the house was recently purchased? I find it hard to believe that the bank wouldn't want to be able to lend more $$ by using the appraised value in the situation where the house has appreciated over the years. vr6man22 - what is your situation? Is your house/condo worth significantly more than the purchase price? Why would they use the purchase price unless the house was recently purchased? I find it hard to believe that the bank wouldn’t want to be able to lend more $$ by using the appraised value in the situation where the house has appreciated over the years.

vr6man22 – what is your situation? Is your house/condo worth significantly more than the purchase price?

]]> By: FinancialJungle http://www.milliondollarjourney.com/required-down-payment-reduced-from-25-20.htm/comment-page-1#comment-3251 FinancialJungle Fri, 27 Apr 2007 04:29:15 +0000 http://www.milliondollarjourney.com/required-down-payment-reduced-from-25-20.htm#comment-3251 According to their Home Equity Calculator, they're using the appraised value, but web site may be wrong. I had the same problem too several years back, and ended up with the President's Choice. http://www.rbcroyalbank.com/RBC:RjF2MI71JsYAAd5Ej88/cgi-bin/personalloans/equity/calc.cgi According to their Home Equity Calculator, they’re using the appraised value, but web site may be wrong. I had the same problem too several years back, and ended up with the President’s Choice.

http://www.rbcroyalbank.com/RBC:RjF2MI71JsYAAd5Ej88/cgi-bin/personalloans/equity/calc.cgi

]]> By: vr6man22 http://www.milliondollarjourney.com/required-down-payment-reduced-from-25-20.htm/comment-page-1#comment-3250 vr6man22 Fri, 27 Apr 2007 04:06:20 +0000 http://www.milliondollarjourney.com/required-down-payment-reduced-from-25-20.htm#comment-3250 hmm as of last month talking to RBC, lady said it is on the purchase price of home ,and not the appraised value of home. IF anyone knows for a fact that this is different then Rbc will be getting a call from me. hmm as of last month talking to RBC, lady said it is on the purchase price of home ,and not the appraised value of home.
IF anyone knows for a fact that this is different then Rbc will be getting a call from me.

]]> By: Mike http://www.milliondollarjourney.com/required-down-payment-reduced-from-25-20.htm/comment-page-1#comment-3248 Mike Fri, 27 Apr 2007 02:52:21 +0000 http://www.milliondollarjourney.com/required-down-payment-reduced-from-25-20.htm#comment-3248 74%? what was I thinking...it was 75%. 74%? what was I thinking…it was 75%.

]]> By: Mike http://www.milliondollarjourney.com/required-down-payment-reduced-from-25-20.htm/comment-page-1#comment-3247 Mike Fri, 27 Apr 2007 02:50:15 +0000 http://www.milliondollarjourney.com/required-down-payment-reduced-from-25-20.htm#comment-3247 I bank with TD (for now) - my heloc was set at the 74% of purchase price which made sense since I had just bought the place. My mortgage guy said that if they appraised it for more than 100k over purchase price (we did a major reno) then there would be no fees for the appraisal and subsequent raise of heloc max. I bank with TD (for now) – my heloc was set at the 74% of purchase price which made sense since I had just bought the place. My mortgage guy said that if they appraised it for more than 100k over purchase price (we did a major reno) then there would be no fees for the appraisal and subsequent raise of heloc max.

]]> By: Cannon_fodder http://www.milliondollarjourney.com/required-down-payment-reduced-from-25-20.htm/comment-page-1#comment-3244 Cannon_fodder Fri, 27 Apr 2007 02:24:16 +0000 http://www.milliondollarjourney.com/required-down-payment-reduced-from-25-20.htm#comment-3244 The good thing is my SS doesn't have any dependency on downpayment percentage. In fact, one could establish an initial LOC of any value. The good thing is my SS doesn’t have any dependency on downpayment percentage. In fact, one could establish an initial LOC of any value.

]]> By: FinancialJungle http://www.milliondollarjourney.com/required-down-payment-reduced-from-25-20.htm/comment-page-1#comment-3241 FinancialJungle Fri, 27 Apr 2007 01:08:52 +0000 http://www.milliondollarjourney.com/required-down-payment-reduced-from-25-20.htm#comment-3241 "HELOCs from banks are usually based on the appraised value of the home." That's correct. 3 years ago, I was considering opening a HELOC with Royal Bank, but at that time, their were using purchase price instead of market value. Good news is, they're using "appraised value" now. “HELOCs from banks are usually based on the appraised value of the home.”

That’s correct. 3 years ago, I was considering opening a HELOC with Royal Bank, but at that time, their were using purchase price instead of market value. Good news is, they’re using “appraised value” now.

]]> By: FrugalTrader http://www.milliondollarjourney.com/required-down-payment-reduced-from-25-20.htm/comment-page-1#comment-3234 FrugalTrader Fri, 27 Apr 2007 00:33:14 +0000 http://www.milliondollarjourney.com/required-down-payment-reduced-from-25-20.htm#comment-3234 Once your house is established, i'm sure that RBC would not have a problem re evaluating the appraised price of your home. They may charge extra legal fees for the appraisal. HELOCs from banks are usually based on the appraised value of the home. When you first purchase a home, and get a HELOC attached, then yes, they would base it on the purchase price. Once your house is established, i’m sure that RBC would not have a problem re evaluating the appraised price of your home. They may charge extra legal fees for the appraisal. HELOCs from banks are usually based on the appraised value of the home. When you first purchase a home, and get a HELOC attached, then yes, they would base it on the purchase price.

]]> By: vr6man22 http://www.milliondollarjourney.com/required-down-payment-reduced-from-25-20.htm/comment-page-1#comment-3229 vr6man22 Thu, 26 Apr 2007 19:00:04 +0000 http://www.milliondollarjourney.com/required-down-payment-reduced-from-25-20.htm#comment-3229 I wish Rbc did appraised value and not purchase price. I wish Rbc did appraised value and not purchase price.

]]> By: FrugalTrader http://www.milliondollarjourney.com/required-down-payment-reduced-from-25-20.htm/comment-page-1#comment-3222 FrugalTrader Thu, 26 Apr 2007 18:06:17 +0000 http://www.milliondollarjourney.com/required-down-payment-reduced-from-25-20.htm#comment-3222 You <b>should</b> be able to get a HELOC for 80% of appraised value of your home without paying CMHC fees. You should be able to get a HELOC for 80% of appraised value of your home without paying CMHC fees.

]]> By: vr6man22 http://www.milliondollarjourney.com/required-down-payment-reduced-from-25-20.htm/comment-page-1#comment-3214 vr6man22 Thu, 26 Apr 2007 15:16:07 +0000 http://www.milliondollarjourney.com/required-down-payment-reduced-from-25-20.htm#comment-3214 can some explain how the HELOC that attach to the mortgage will work now. when using it with smith man. Will the bank lend 75% or 80% or what? can some explain how the HELOC that attach to the mortgage will work now.
when using it with smith man.
Will the bank lend 75% or 80% or what?

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