All Forum Posts by: Yu Liu

Hello Joanne, 

I'm a mortgage specialist at TD. It does seem very odd to me, I haven't heard anything about it honestly, and sorry you didn't have a good experience. I'm wondering did you talk to a branch or another mortgage specialist? If you want you can send me a DM i'd love to take a look at your file and help you out. 

Jake

Hello Julie,

I'm a mortgage specialist located in Quebec. I haven't heard anything about no stress test honestly. When we calculate your debt to income ratio we always use the ratio that in our guideline, which is 4.79% at the moment. If you have any update about "no stress test" i'd love to hear more about it. 

Jake

Hello Amir

It's Jake here. I'm also doing mortgage at the bank, In montreal. Nice to see you here

The interest rate in Canada is at all time low, and still dropping every other week. many people start to think if it's a good idea to break your term and refinance in order to take advantage the low rate. Or, many people considering upgrading or downsizing. It might not be as wisely as you think.

As we know, banks don't like to do unprofitable business. When you break your term, it becomes unprofitable to them. How do they make up the loss? depends on the type of your mortgage, they will very likely to charge you something called IRD- interest rate differential. It could be very costly.

There are 2 major factors affecting the amount you have to pay, which are the interest rate you are paying and the interest rate the banks are offering. When the gap between these two is big, the IRD could be unbearably large. The thing is, it's changing constantly and you can't really predict. I've seen clients' IRD increases over $10,000 within one month, it changes the story completely.

At this point, you might want to ask. Is there any way to avoid it? The answer is "it depends". If you are selling your home and NOT looking to buy a new one. Unfortunately, there is no way you can avoid it. The best you can do is to go to a branch and ask them to calculate the penalty amount, and adjust your selling price accordingly. At least you will have general idea what you are getting into. BUT, don't take it for granted as it changes constantly.

If you are selling your home and looking to buy another one, good news for you! If you are doing business with the same bank, they will very likely to offer you something called "portability program". It gives you an option to "transfer" your existing mortgage into the new one at the same terms and rate. Depends on the bank, they might even offer you a blended rate to drop your interest rate to some extend.

I hope you find this information helpful. If you have any mortgage related question you can always connect with me. I will be more than happy to help you out!

Jake

The interest rate in Canada is at all time low, and still dropping every other week. many people start to think if it's a good idea to break your term and refinance in order to take advantage the low rate. Or, many people considering upgrading or downsizing. It might not be as wisely as you think. 

As we know, banks don't like to do unprofitable business. When you break your term, it becomes unprofitable to them. How do they make up the loss? depends on the type of your mortgage, they will very likely to charge you something called IRD- interest rate differential. It could be very costly. 

There are 2 major factors affecting the amount you have to pay, which are the interest rate you are paying and the interest rate the banks are offering. When the gap between these two is big, the IRD could be unbearably large. The thing is, it's changing constantly and you can't really predict. I've seen clients' IRD increases over $10,000 within one month, it changes the story completely. 

At this point, you might want to ask. Is there any way to avoid it? The answer is "it depends". If you are selling your home and NOT looking to buy a new one. Unfortunately, there is no way you can avoid it. The best you can do is to go to a branch and ask them to calculate the penalty amount, and adjust your selling price accordingly. At least you will have general idea what you are getting into. BUT, don't take it for granted as it changes constantly. 

If you are selling your home and looking to buy another one, good news for you! If you are doing business with the same bank, they will very likely to offer you something called "portability program". It gives you an option to "transfer" your existing mortgage into the new one at the same terms and rate. Depends on the bank, they might even offer you a blended rate to drop your interest rate to some extend.

I hope you find this information helpful. If you have any mortgage related question you can always connect with me. I will be more than happy to help you out! 

Jake

Hello Tobi, at TD we can finance up to 9 properties under one person's name. If you would like to qualifying for more property make sure your rental cash flow is really really good. Usually banks as very conservative on calculating rental incomes. Rule of thumb, cut you rental income (future property) in half and add to your personal income. If your use your yearly expenses divided by your gross income, if the ratio is less than 44% you should be good to go. 

YEs, as long as you have equity over 20% you will be eligible for a refinance. And whenever you would like to apply those, banks usually send appraiser to evaluate. 

Yes, it's always the appraised value. We always use independent appraiser to do the evaluation. 

Hello Jovan,

I'm a mortgage specialist at TD. 

For your question, it also depends on how much percentage of downpayment you put when you purchased the property. 

We can do refinance up to 80%, and from this 80% you can have up to 65% of revolving portion. 

Hope that answers your question. 

Jake

Hello Randolph,

I'm glad you are thinking of investing in Canada. I invested 6 properties already in Montreal Quebec. I'm having reasonably cashflow here. On top of that, the appreciation is very good in Quebec over all. I would say it's a hybrid approach, you have both cash flow and appreciation.