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Is this the thread to bellyache about possibly buying a home in Toronto?
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Oct 6, 2020 04:16
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| # ¿ Apr 30, 2024 03:22 |
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I had the good luck of finding out my wife's parents are super keen on getting her into a home. They've pledged 220k and we've put together another 200k. I never thought I'd have anywhere near this kind of money so I learned NOTHING about real estate and put everything extra into a TFSA. And I live pretty lean, so we started to put together decent savings for retirement. But with her parents offering to jumpstart us, it seems like we could finally jump out of nightmarish 1 bedroom apartment living. I'm awake at night and now that she's working at home we have to tiptoe around to not cause noise while the other is sleeping and it's just no way to live, man. Can't even do our hobbies. Or barbecue. And both of our jobs are only ever going to be in the city, so we're here to stay. We're looking at houses in the 700-850k range, all in, on a 130-150k joint gross income. So a mortgage of 300-450k, at historically low rates (for at least a while). I mean, I know we can afford it without just being house poor and we can absorb a downturn, but I have questions. One: am I insane? Two: it's easy to look at the 25 year amortization number, but is there any benefit other than forced savings and early equity for going lower, like 20 or even 15 year? I read about early payment penalties and it's pretty foggy. If I wanted to put another big payment towards the mortgage, where do I find the exact maximum number you can put towards it each year? Three: what kind of barbecue and lazyboy should I get? edit: also, I feel like someone somewhere is going to call me a lucky rear end in a top hat to have this problem, and you're right, and I'm sorry in advance. But I wanted to be honest and get good advice. So please look past that and know that I will get karmically hosed somehow. redbrouw fucked around with this message at 05:35 on Oct 6, 2020 |
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Oct 6, 2020 05:17
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Cold on a Cob posted:A lot of mortgages will let you pay quite a bit extra up front without penalties so it can be worth keeping your monthly obligations low if you're disciplined enough to take advantage of those options. Ah, I see that now, some of the prepayment stuff is up to 10% of the original principal which is more than we'd likely be able or want to pay. Thank you. How much bargaining power does a 50% downpayment give you with mortgage lenders? Am I going to be able to lock in a lower rate for longer, or anything like that?
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Oct 6, 2020 05:50
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Cold on a Cob posted:Get a broker - you'll get a better rate if you don't go to the big banks, but yeah larger down payment doesn't mean much once you hit 20% unless you want to buy >1M. Maybe someone in the thread can recommend one if you mention the city you're looking in. Toronto.
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Oct 6, 2020 16:16
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Yeah, most of the money is contingent on it being for a house, even a chunk of my side of it. So, really, there's no opportunity cost for not throwing at least 370ish in cash at the house right off the bat. I could save about 50k of my own personal money as the emergency fund, but I doubt that's going to provide a better rate. As of right now, the monthly costs for a 400k 5 year fixed closed mortgage, plus property tax, utilities, etc would only be about 32% of our low side income (I technically could assume I have more since I have every year in the past, but, corona makes me wary) after tax. So we have plenty of time to build up a decent emergency fund. I think we'd have at least 5000 in emergency funds right off the bat, and we both have nearly perfect credit.
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Oct 7, 2020 01:19
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I looked at 5 houses today in Toronto in my price range (as per listing). I couldn't stand in the basements of 3/5. I'm just under 5'11". 50 percent of the house unusable. I'm going to have to tack on 100k just to stand in my own home.
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Nov 28, 2020 22:12
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I am putting an offer in on a house in Toronto.
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Dec 1, 2020 04:24
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I'm 15 days away from closing and my mortgage lender has demanded that the gift my partner received from her mother in Hong Kong be verified with bank statements edit: from her mom's bank account. He said it was the law. Which is horseshit, it has to be. What is a tiny mortgage company going to do about it? It's reported to FINTRAC, there's an asset being bought, we're INCREDIBLY credit-worthy, and we've complied with every other bullshit stipulation they've thrown in our way. We have the downpayment! The house is loving bought! It's with Butler Mortgages too. The entity we're getting the loan from is XMC. redbrouw fucked around with this message at 22:29 on Jan 19, 2021 |
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Jan 19, 2021 22:26
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I have no doubt it's legal to ask, but they cancelled the deal over it.
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Jan 20, 2021 18:39
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xtal posted:I don't think you're going to get much sympathy that you couldn't buy a house in Canada using a gift from your parents in Hong Kong lol Yes, I'm dying for sympathy from you. The question was about them claiming it was the law requiring them to ask, which turns out to be bullshit.
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Jan 20, 2021 19:23
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Less Fat Luke posted:Wait why did they cancel? You couldn't get the statements in time? It involves sending my wife's retired parent to the bank in HK physically. We told them they should have told us this a week ago and it would take time, and then they cancelled the deal through our broker.
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Jan 20, 2021 19:58
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Broker found a different lender he says is going to accept the documents as is. Asking for 90 days of bank statements from the other side of the world in an attempt to do the job of FINTRAC and then claiming it's Canadian law is just utterly bogus, so I'm glad we're not with them now. edit: they also have to travel an hour by bus from Yuen Long to HK, so it's not as safe as you'd think.
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Jan 20, 2021 20:14
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Jenkl posted:What? Are you just being pedantic? They do have a legal requirement to report suspicious transactions to FINTRAC. The documents we provided on this were a gift letter from the parent, a picture of the depositing cheque, receipt from the bank and the FINTRAC international transfer report which identifies it as a gift for purchasing real estate. After having those documents for two weeks, they asked us for 90 days of her mother's bank statements. When we protested we couldn't do it and we were about to close, they abruptly cancelled on us. It's chilling how willing they were to believe an immigrant was a criminal. How would invading her mother's privacy help them? Why were they so willing to believe my portion of the downpayment was legit when it came from Scotland?
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Jan 20, 2021 22:49
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The broker just called us and we were instantly approved by the second place. Maybe someone at XMC figured they didn't want the money.
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Jan 20, 2021 23:01
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xtal posted:Also lol at "my foreign investor parents are not Hong Kongers but Scottish!" How are you wrong about everything? Who posts in an investment thread being butt hurt about money? redbrouw fucked around with this message at 19:20 on Jan 21, 2021 |
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Jan 21, 2021 19:18
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MrAmazing posted:Not sure this FINTRAC things complaining comes from? If they told you that they are probably lying through their teeth to cover their failure to identify additional compliance requirements in advance of closing. Yeah, you're exactly correct. They lied to me about it being Canadian law that they needed 90 days of the deposit information, when it was their own desire to see. I was briefly teed off by the mouthbreathers, but they've lost my business and it's over with.
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Jan 21, 2021 22:55
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Is this 15 percent of 400, or just 400?
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Feb 26, 2021 13:31
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Only complete catastrophe will necessitate a change
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Nov 20, 2022 01:24
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| # ¿ Apr 30, 2024 03:22 |
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Can someone with investment and monetary policy knowledge explain to me, in a non pithy or conspiracy theory way, what the GOC purchasing mortgage backed securities is actually supposed to do? I know they're doing it with the BOC as the actual purchaser, and that it's supposed to do something about making investment in MBS less attractive, but after that my eyes cross.
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Mar 19, 2024 00:28
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