Tuesday, January 31, 2017

RESL Non-Resident & Non-Permanent Resident Borrowers

Non-Resident Borrowers
Branch Submission of Applications
  • Provide borrowers current address from their country of residence in Comments to enable credit investigation.
  • All applications must indicate Owner Occupied = N, and Rental = Y, or be submitted as Recreational Properties.
  • The Non-Resident indicator must be selected on the Product Selection screen.
Non-Resident Policy
  • Applicants under these guidelines do not reside in Canada.
  • Maximum exposure of 2 properties (financed with TD) per non-resident investor.
Eligible Products
  • Conventional Mortgages
  • All Fixed Rate and VIRMs
Ineligible Products
  • TD Home Equity FlexLine (referred to as FlexLine)
  • Cashback mortgages not permitted
Eligible Loan Purposes
  • Purchase or Refinance
  • Single Advance
Ineligible Loan Purposes
  • Progress Advance (construction draw)
  • Purchase Plus Improvements
  • Refinance Plus Improvements
Eligible Properties
  • Rental Properties Up to 4 Units
  • Recreational Properties meeting conventional standards. Refer to Property Criteria.
LTV
  • Maximum 65% LTV subject to Sliding Scale.
  • Exceptions beyond 65% LTV will not be permitted
Appraisal
  • Full appraisal required
Terms/Rates
  • All Fixed terms (6 months - 7 years and 10 year fixed rate)
  • VIRMs (Open and Closed)
  • Pricing: No restriction
Down Payment
  • Required minimum down payment of 35%
Amortization
  • Maximum of 25 years
Customer and Application Verification
  • All aspects of the application must be verified.
  • Standard income confirmation is required, refer to Income Confirmation Guidelines.
Note: Equity Lending cannot be applied to Non-Resident lending.
  • Verification of all assets and credit obligations, including the down payment, is required. Refer to Down Payment.
  • Confirmation and verification of the customer’s identity is required under Know Your Customer, Policy and Process for Authenticating New Customers.
  • Ensure all debts including housing costs from principal residence are input for debt servicing calculations.
Qualifying Debt Servicing Ratios
TDS:
42% where beacon score is < 680
Up to 44% where beacon score is >/= 680
GDS:
35% where beacon score is < 680
Up to 39% where beacon score is >/= 680
Credit Investigation
  • The borrower's complete address from their country of origin will be required by the Credit Centre to enable credit investigation.
  • Satisfactory international credit bureau is required.
  • For Applicants with a US address and social security number, the Credit Centre is required to obtain a copy of the Equifax US credit bureau.
  • For non-US international applicants, the customer(s) can provide ONE of the following from their country of origin showing evidence of credit history and must be forwarded to the credit center for review:
Copy of the credit bureau report OR
6 months of credit card statement from the country of origin demonstrating repayment OR
6 months of bank statement from country of origin that demonstrates loan/mortgage repayment
Note: The bank statements provided should represent a day-to-day operating account demonstrating regular banking activities (i.e. debit patterns such as regular MTG/loan/credit repayments, no NSFs, etc.). Review and understand the customer's credit obligation and payment frequency as this will give you an understanding of the customer's credit worthiness. Be prepared to provide the same rationale in your comments to the credit center.

Branch Submission of Applications
  • Provide borrowers current address from their country of residence in Comments to enable credit investigation.
  • All applications must indicate Owner Occupied = N, and Rental = Y, or be submitted as Recreational Properties.





Temporary (Non-Permanent) Resident Borrowers


Branch Submission of Applications
  • The Non-Permanent Resident indicator must be selected on the Product Selection screen.
Temporary (Non-Permanent) Resident Policy
  • Applicants under these guidelines will typically be employed by established, well-respected companies, who are being re-located to Canada for a specific period of time for work purposes.
Eligible Products
  • Conventional & Insured Mortgages, Fixed Rate and VIRM (Open and Closed)
  • Conventional FlexLines
Eligible Loan Purposes
  • Purchase Only
  • Single Advance
Ineligible Loan Purposes
  • Progress Advance (construction draw)
  • Refinance, Equity-take Out
  • Purchase or Refinance Plus Improvements
Eligible Properties
  • Owner Occupied Properties - Maximum One Unit
  • New Construction and Resale
Ineligible Properties
  • Rental Properties
  • Multi Unit Properties
  • Recreational Properties
Downpayment

  • For Conventional, follow standard down payment guidelines.
Security
  • 1st position Mortgage or FlexLine
LTV
Maximum 80% for Conventional Financing on Mortgages subject to Sliding Scale.
Maximum 65% for conventional FlexLines subject to Sliding Scale
Maximum 90% for Insured Financing
Appraisal
  • Standard conventional appraisal policy applies
Terms/Rates
  • All Fixed terms (6 months - 7 years and 10 year fixed rate)
  • VIRMs (Open and Closed)
  • Standard pricing applies
Amortization
  • Maximum of 25 years
Debt Servicing
  • All debts including housing costs from principal residence are included in the debt servicing calculations.
Maximum GDS/TDS:
35%/42% where beacon score is < 680;
39%/44% where beacon bureau score is >/= 680.
Insurance Premiums
  • Standard CMHC/Genworth fees and premiums apply.
Income Confirmation
  • Branch to confirm income as declared on the application, by letter of employment indicating length of contract in Canada and no probationary period.Note: Equity lending cannot be applied to Non-Permanent Resident lending.
  • Down Payment Minimum of 10% from borrower’s own resources. Refer to Down Payment.
Credit Investigation
  • The borrower's complete address from their country of origin will be required by the Credit Centre to enable credit investigation.
  • Satisfactory international credit bureau is required.
For CMHC insured deals:
  • CMHC will obtain copies of credit bureau.
For Conventional deals:
  • For Applicants with a US address and social security number, the Credit Centre is required to obtain a copy of the Equifax US credit bureau.
  • For non-US international applicants, the customer(s) can provide ONE of the following from their country of origin showing evidence of credit history and must be forwarded to the credit centre for review:
Copy of the credit bureau report OR
6 months of credit card statement from the country of origin demonstrating repayment OR
6 months of bank statement from country of origin that demonstrates loan/mortgage repayment
Note: The bank statements provided should represent a day-to-day operating account demonstrating regular banking activities (i.e. debit patterns such as regular MTG/loan/credit repayments, no NSFs, etc.). Review and understand the customer's credit obligation and payment frequency as this will give you an understanding of the customer's credit worthiness. Be prepared to provide the same rationale in your comments to the credit center.
For Genworth insured deals:
The Credit Centre is required to contact Equifax to obtain a copy of the required credit bureau. The Credit Centre will forward the credit bureau to Genworth, for review for all Genworth insured requests.
Equifax will provide an international credit bureau, however, there may be cases where they are cost-prohibitive or take too long; in such cases, a letter of reference from the financial institution where the customers currently have borrowings will be required.
The Credit Centre will review and verify the validity of all reference letters and forward the letters of reference to the insurers for review for all insured requests.

Borrower Eligibility
Customer must have relocated to Canada within the last 24 months
Customer must be eligible to work in Canada.
Customer must be employed in Canada for a minimum of 3 months Confirmation of valid Canadian Employment Authorization Form (Work Permit form 1442).
Must confirm sale of principal residence in their home country, or be able to carry both properties.
This program is not available for diplomats or any other foreign political parties that do not pay income tax in Canada.
All other standard borrower eligibility criteria apply.


Branch Submission of Applications
Provide borrowers complete address from their country of origin in Comments to enable credit investigation.
Customers may be required to provide a letter of reference from the financial institution where they currently have borrowings depending on the availability of an international credit bureau report.


Policy as at January 23, 2017 – subject to change.

Monday, January 30, 2017

British Columbia foreign buyer tax changed...

British Columbia's premier has announced her government is amending its tax on foreigners buying property in Metro Vancouver.

Christy Clark says the levy will be lifted for those who have a work permit and pay taxes in B.C., in order to encourage more people to come to the province.
The 15 per cent foreign buyers tax was implemented last August in a bid to cool skyrocketing real estate prices.

Government data released earlier this month shows there was a steep drop in real estate transactions in the Vancouver area last summer after the tax was introduced.

Tax revenues from property transfers in Metro Vancouver show there were about 15,000 transactions in an approximately seven-week period ending Aug. 1, but the number dropped to a low of about 4,700 for the month of October.

The data shows there were about 1,970 purchases involving foreign buyers in the period ending Aug. 1, compared to 60 in the rest of August and about 200 in November.

If you are looking for a home or investment property in British Columbia, please click here 

Friday, January 27, 2017

Increasing foreign investment.... Fast fact

Chinese investors pumped an estimated $45.6 billion into various projects and companies in the US during 2016 – three times the $15 billion invested in 2015.

Top 10 must-know China trends for 2017

2016 was a huge year for overseas homebuyers from China that saw underlying trends flagged by us in December 2015 playing out to great effect.

With China’s GDP growth exceeding the 6.5% expectation1Chinese companies contributing to a record flow of overseas dealsoutbound tourism flows exploding, and droves of Chinese applying for education abroad last year, we take a closer look and lay out what we see as key trends for 2017:
 
#1 Domestic slowdown, overseas acceleration
China’s government has imposed sales and credit restrictions2 on its domestic real estate market to slow the rapid growth in property prices seen in 2016. With fewer opportunities, and with Bank of America Merrill Lynch expecting residential prices to fall 5% y-o-y in 20173, Chinese property investors will be increasing looking overseas for investment opportunities. This is even more so as Chinese high net worth individuals (HNWIs) consider property purchases abroad as the most popular form of overseas investment. In fact, top investment destinations like the US, Australia, Canada, the UK, New Zealand, and Thailand all saw the highest amount of enquiries on Juwai.com in Q3 2016 – when China began imposing restrictions on its markets – and we percieve that even the recent tightening on personal forex purchases in China should have minimal impact on Chinese individuals investing abroad.
 
#2 User experience to become a game changer
China’s retail sector continues to grow at an astonishing pace – up 10.7% y-o-y in September 2016 with online sales expanding at a 26.1% y-o-y clip4 – and thus cementing China’s retail market as the largest in the world. For retailers, though, it’s no easy ride for consumers’ attention, since competition is ratcheting up with companies going to new lengths to improve customer experiences. One standout example is Alibaba’s use of virtual reality (VR) in its Singles’ Day extravaganza, where it offered Chinese shoppers a VR shopping experience based on Macy’s New York store. Put together with Alibaba’s foray into drone delivery5, it’s clear that retailers will adopt new technologies and up their game in the ongoing battle for the hearts, minds, and wallets of China’s consumers.
 
#3 Global visa rules to ease for Chinese visitors
Governments in JapanAustralia, and the US have all unleashed a boom in tourism and investment flows after easing their visa policies for Chinese visitors. Following the success of these countries, other nations have followed suit, with the UAE (United Arab Emirates), the Philippines, Turkey, Cyprus, and Vietnam rolling out the red carpet for Chinese visitors as well. These changes, combined with the expansion of visa processing centres by countries like Canada and the UK to more regional cities, will support the flow of outbound tourism and investment from China with real estate a major beneficiary.
 
#4 Greater competition for Chinese buyers
Chinese property investors are now a powerful force to reckon in markets around the world but competition is ratcheting up as agents are wising up to the potential of this lucrative market. This means that agents will have to go further to get buyers’ attention by using data to drive decision-making (such as Juwai IQ), adapting to China’s vibrant social media scene (such as WeChat), and focusing on softer criteria to appeal to Chinese buyers, which includes focusing on issues like safety and security to differentiate you from the crowd and give a more nuanced appeal to the Chinese buyer mindset.
 
#5 China’s consumers to continue driving the economy
Alibaba’s Singles’ Day bonanza, which saw a 32% y-o-y increase that generated $17.8 billion in sales to make it the biggest global retail event, showed that China’s consumers are in rude health. Looking at the macro picture, Chinese consumers will be driving the Chinese economy like never before in 2017, especially as the IMF expects Chinese consumers to increase their spending by 7.7% in 20176, and add an extra $311.9 billion to China’s GDP.7 For comparison, that’s the equivalent of the South African economy.   
#6 One Belt, One Road to get an even bigger push
With Donald Trump’s election indicating a more domestically-focused policy agenda8, China will accelerate the One Belt, One Road strategy’s $1 trillion9 investment boom, build-out more efficient trade routes, catapult Chinese companies overseas, and strengthen China’s political relationships and influence in Asia, Africa, the Middle East, and Europe. And as Chinese businesses expand overseas, their staff will follow them and be on the lookout for property as they settle overseas, as we have seen happen in Dubai.
 
#7 Alternative markets soar in popularity
Hotspots like Los Angeles, London, Vancouver, and Singapore will always draw interest from Chinese but alternative locations like Seattle10ManchesterCalgary, and Iskandar in Johor Bahru, Malaysia11 will see strong demand from Chinese investors as well, thanks to improved transport connectivity, relaxed visa conditions, and increased knowledge of alternative markets.
 
#8 China’s greying population a future goldmine for real estate agents
China will have a population of 340 million retirees aged over 60 in 2030, an increase of 175 million from 2016.12 This is creating huge demand for property and medical services, as elderly Chinese want to retire in comfort and have easy access to excellent medical facilities as well. As such, more and more Chinese are looking abroad to fulfill their needs, creating a burgeoning market for retirement properties and medical tourism. Spending by Chinese on overseas medical care alone was estimated at $10 billion in 201513, and this is expected to grow with locations like the US, Japan, Germany, and Thailand at the top of the list for medical services abroad.
 
#9 Chinese tourism: larger flows, wider reach
Total global outbound trips grew 4% y-o-y YTD at the end of September 2016, with trips out of China growing 18% y-o-y14, making China the largest source of tourists in the world. The steady loosening of visa rules for Chinese citizens and increasing flight connections out of China, which were up 13.9% y-o-y15, will continue to propel tourism growth out of China. This surge in Chinese outbound travellers are largely driven by droves of travellers from lower-tier cities, mobile millennials – the fastest-growing spenders in China – and an increasingly adventurous tourist base who are just as keen on the Arctic16 as they are on staple locations like Portugal’s Algarve coast.

#10 Larger buyer pool in China for overseas properties  
Stronger prospects for overseas property markets, increased wealth from China’s recent real estate boom, easier visa application rules, the ongoing allure of overseas education, as well as medical and health facilities, plus a greater selection of (increasingly affordable) flight connections…all these will bring more Chinese buyers to market than before.
 
Armed with these insights into how the Chinese market may play out, it’s best to get ahead of the crowd this year, especially with the upcoming Chinese New Year – the first Golden Week of 2017 and a peak season for real estate sales – just days away.

Fantastic information provided taken from here 

Thursday, January 26, 2017

2017 Ottawa Market update

The market in Ottawa tends to be pretty steady and does not have a lot of ups and downs.  Last year, Ottawa sold over 15,000 homes, for the first time ever.  Kind of like the Dow breaking 20,000, the market here broke a psychological barrier, as we have been mired in 14,000 plus sales for many years.  

It really was a tale of two years in Ottawa in 2016 - the first 5 months of the year were average at best and in June the market really started to pick up with volume of sales record months through most of the summer and fall.  Average price for the year was up, average days on market are dropping; which are usually signs of a market heading back towards as Seller's market.

We are seeing a large uptick in traffic from Toronto.  Prices there have gotten very high and we are getting inquiries here from first time buyers, up through to downsizers.  With demographics showing the increasing age of Baby Boomers, coupled with the fact that Ottawa has the highest percentage of Baby Boomers per capita of any city in Canada, we should be seeing more sales of suburban homes and increased urbanization of the core areas.

The four major post secondary schools in Ottawa boast over 138,000 students.  Efforts are being made to increase foreign students with their $26,000 annually tuition, which is about 5 times the cost of an Ontario student.  The Ottawa Light Rail Transit system is due to be completed and operational in 2018.  Phase 2 path has been planned out and is planned for operation in 2023.  This is a huge capital project which should increase property values and increase rents by about 10% monthly.

Overall, the Ottawa market has gone through a difficult time over the past 4 years (since July 2012).  The market showed signs of strength summer 2016 onward and this trend should continue.  The increased spending on infrastructure planned by the Liberal government will be administered by bureaucrats in Ottawa, which means job growth, which leads to population growth, which leads to real estate prices increasing....

The outlook is positive, but investors need to have a mid to long term view of their investments.

Keystone XL pipeline gaining momentum



CALGARY—The Trudeau government is welcoming the news that U.S. President Donald Trump has signed an executive order advancing the controversial Keystone XL pipeline, while maintaining that the project doesn’t upset its balance between the economy and the environment.
“It’s a good day for Alberta and a good day for Canada,” Natural Resources Minister Jim Carr said at a federal cabinet retreat Tuesday.
“I’m very glad the prime minister and the cabinet are here, because this decision will result in many, many jobs for Albertans.”
Carr’s welcome came even though Trump provided few details about what his executive order covers, signed another order that U.S. pipelines should only use U.S. steel and said he wants Keystone XL details renegotiated.
For the complete article please click here 
For real estate opportunities arising from the Keystone Pipeline - please click here  

Monday, January 23, 2017

The Port of Miami


The widening of the Panama Canal is a great positive for the Port of Miami and the future of cargo and cruise ships in Miami.  The video above is a great illustration of the future of Port and the importance to Miami, the #1 cruise ship port in the World

If you are looking to invest in Miami, I can help you find a top agent, please click here 

Quick facts about Ottawa

Some quick stats:
  • More than 25,000 employers
  • More than 728,000 jobs
  • Home to the Government of Canada, Parliament, the Supreme Court, and various other government organizations
  • The Federal Government employs over 110,000 people
  • Home to over 1,700 technology companies with over 68,000 employees
  • Boasts the most stable employment rate in Canada
  • 4 major post secondary institutions with over 138,000 students

Friday, January 20, 2017

Look at Miami projected skyline in 2020


The 'Magic City' is going to grow significantly; check out Miami in year 2020....

If you are looking to invest in Miami, I can help you find a top agent, please click here 

Military Family Cycle


Having worked with many military families, this pictograph is very accurate.  Moving from Kansas, where you were really happy and off to frozen Ottawa can be a huge adjustment.  Then off to Petawawa for a few years and finally getting back to Ottawa, where you loved living.  It can be tough for military families, moving every few years to new and different places, hopefully it can be made easier by using an experience Ottawa real estate agent.

If you require assistance, please feel free to contact me here 

Thursday, January 19, 2017

Miami condos - best plan for the future?




Amazing white board video on the top ten reasons to consider Miami, Florida for your real estate investment needs.

If you are looking to invest in Miami, I can help you find a top agent, please click here 

Today, three new, interesting multifamily properties have come on the market....



Echo - Waterfront, on the Canal, vacant, 3 units, cannot find a better Ottawa locations, could be professionals or students.  Needs some TLC to bring to a contemporary look

Florence - Four units, purpose built in '87.  Looks like it can operate as is, or add a few bedrooms (converting dining rooms), then make into a 15 bedroom student residence.

Vanier - 6 plex, under $1m, with good net income.  Units look to be in average condition.  Good return for a large building in a gentrifying neighbourhood - read here for an update on City of Ottawa changes coming 

As always, for information on these exciting opportunities and questions on Ottawa real estate, please click here 

Wednesday, January 18, 2017

University of Ottawa - Student housing opportunity - 600 meter from campus.....

Side by side, all brick duplex available in Sandy Hill, approximately 600 meters from University of Ottawa campus.  One unit with 5 bedrooms and 2 bathrooms, the second unit has 6 bedrooms and 2 bathrooms.  Currently fully leased, with leases expiring in Aug 2017 and May 2017.  Tenants pay all utilities, owner just pays property taxes ($8,024) and insurance ($4100).  The Ottawa Light Rail Transit is coming to campus in 2018....

Asking Price is $1,125,000
deposit - $225,000
Gross income - $76,800.00
Expense - $12,124.00
Net Income - $64,676.00

monthly estimated cash flow - $1,450.67

For additional information - please contact me here 


University of Ottawa housing is dwindling in supply.

University of Ottawa Student population is increasing...
In 1965 there were 4,300 students
1974 population climbed to 15,000
in 2013 there were 42,587
projected in 2020 for the student population is over 50,000 students;

This is an increase of over 17% in student population.

Click here for interior photos
Click here for a picture of the all brick exterior 

University of Ottawa today

University of Ottawa snapshot

38 main buildings, with an average age of 65 years are owned by the university and are home to
  • 280 classrooms or seminar rooms;
  • 272 teaching laboratories; and
  • 830 research labs
8,327 staff members were employed at the university as of 2013
  • 5,542 Academic staff, including
    • 1,269 Regular academic staff
    • 4,273 Other academic staff (part-time professors, research fellows, librarians, etc.)
  • 2,785 Support staff
42,587 students were enrolled at the university as of 2013
  • 36,042 undergraduate students
  • 4,546 master’s students
  • 1,782 doctorate students
  • 217 other graduate students
77 per cent of students do not drive to school
  • 44 per cent use the transit system
  • 14 per cent arrive to school on foot
  • 11 per cent carpool
  • eight per cent use a bicycle
3,213 parking spots are available at the university
  • 1,242 of those are available in the school’s five parking garages
  • 1,971 are found at the 21 different outdoor lots.
4,000 beds will be offered in residence by September 2015, 600 more than they have now
  • 10 resident buildings will be available by September 2015
    • 1,326 beds in traditional rooms: LeBlanc, Marchand, Stanton and Thompson
    • 1,023 beds in studios and suites: 90 University and Friel
    • 939 beds in apartments: Brooks and Hyman Soloway
    • 120 beds in 24 houses: along King Edward Avenue and Henderson Avenue
  • 2 new “Traditional Plus” style buildings will be added
    • 172 beds in Henderson residence, found on Henderson Avenue
    • 500 beds in Rideau residence, to replace Quality Hotel at Rideau Street and King Edward Avenue
    • Features the traditional style residence with a bathroom or TV
    • Located in two new buildings, Henderson and Rideau
  • 4 types of residences
    1. Traditional: Small room, with common kitchen and bathroom areas
    2. Studios and Suites: Bedroom with private kitchenette and bathroom
    3. Apartment: Bedroom, bathroom, full kitchen, living and dining area
    4. House: Bedroom, bathroom, full kitchen, dining area and living room
*** all information taken from article published here