Refinancing Hurdles - Am I missing something?

[Chantell Austen]

Looking for advice on how to get around my mortgage broker who flat out just said no to my refinancing enquiry. I have 2 pieces of personal property. Primary residence and land owned outright (future forever home). Both properties combined would appraise at over $2.2M CAD. I have a small mortgage on my primary residence and a HELOC tied to that property. All borrowing combined is under $500K. Household income is around $120k. I was told by my MB that maybe I could find a private lender at 9% which is not the news I was looking for. Am I missing something? I had not quite decided between a rental or a flip, I wanted to know what my options were first. Time to find a new broker perhaps?

[Huong Luu]

@Chantell Austen Get a 2nd opinion and 3rd opinion. Keep in mind, mortgage brokers do not have access to CIBC and RBC. So you may want to reach out to those agents regardless of finding a new MB. I have a great RBC agent so can refer you. 

Your debt service ratio may be too high as your HELOC may be showing up on your credit score thus part of the TDSR, and your score may be too low. Even though your borrowing amount totals $500K, if your HELOC has $1.5M registered on it, then they use the $1.5M in their calculation. A good agent will be able to give you more info on this.

Another option besides private lend, is looking at B lenders. Their rates will be around 4-6%.