Monday, April 29, 2013

Rental Apartment Finance Guideline Update 5.2013

Product:  Rental financing
In addition to max. 75%LTV on a rental unit. We’ve made some changes to our policy. Here it goes:

For the purpose of confirming gross rental income, expired leases can be accepted with the addition of one of the following:
·         Signed acknowledgement from the tenant confirming rental/lease agreement is still in effect; or
·         Copies of the last 3 months of cancelled cheques; or
·         Evidence of the last 3 months of rental deposits in the account
If applicant owns 1 rental property (maximum 1 unit), either:
·         50% of the confirmed gross rental income can be included as income and full principal, interest, (property) taxes and heating (PITH) for the subject rental included in liabilities; or  Rental worksheet can be used to calculate the rental property Debt Service Ratio Owner occupied rental properties included
Opinion of Market Rent is acceptable for purchase and refinance transactions up to 65% LTV

Td economics:
·         The past week saw the TSX, most commodity prices and the Canadian dollar versus the U.S. dollar, all make up ground. However, all three still remain underwater so far in 2013. That is consistent with Canada’s economic under performance versus the United States.  
·         February’s retail sales data were consistent with a more modest performance in consumer spending north of the border, as trend sales have slowed in both real and nominal terms. Moreover, the lack of pricing power at the retail level speaks to increased competition in the face of softening demand.  
·         This difficult retailing environment is likely having an influence on small business confidence, which slipped further in April, according to the CFIB’s Business Barometer. Particularly since insufficient domestic de­mand is cited as the main limitation to small business growth.

Have a great week!

Romy Alegria | Manager, MMS | TD Canada Trust
P: 416.278.2540 | F: 1-866.222.5708

 There you have it!

New guidelines for a Rental ( Investor) Purchase of a Toronto Condo Unit.
Downpayment are firmly at 25% or at 35% with Opinion of Value Letters.

Are you looking for an investment to hold long term?

Vacancies are continuing at 1.5% or less.

1 comment:

  1. This is a mind boggling article. Looking forward to reading more of your outputs.

    PIC Bonus Singapore