# new mortgage rules for investors?



## marina628 (Dec 14, 2010)

My husband and I went to the bank last week to do our paperwork on our latest investment property and the required down payment was 35% down instead of the 20% we have been putting down in the past.Did some rules change?This is our 4th investment property plus we have our PR and a cottage(mortgage free).Our debt ratio with all mortgages is only 28% and this is with TD Bank, they offered to send it back to get an exception at 75% but we just put the extra funds down.

Marina


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## kubatron (Jan 17, 2011)

*If *your TDS/GDS is at 28% then it's clear you're overexposed with TD Bank, and should go with a mortgage broker like me or someone else to go to another lender.


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## marina628 (Dec 14, 2010)

We have everything with TD ,We are ok with 20% down but 35% would definitely be a bit much at rate we buy houses.Our RE just suggested same thing that we go with broker and would get the 20%.We have leases on all properties including the new one.


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## marina628 (Dec 14, 2010)

what i don't understand is how some can get approved with almost 40% debt service ratio.They can only take 50% of rent into consideration ,if 100% were considered we are at about 14% .They also refused to consider $5000 a month I am being paid from my corporation as it is not taxable ,although I have had the transfer set up since October 2007.


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## Berubeland (Sep 6, 2009)

Dear Marina,

There is a limit to how many single family home mortgages you can get at one bank. They do not want to hold more than 4. The 35% down is their way of telling you this. 

Their reasoning is that if something happens to you then that is a lot of exposure for them. 

It has nothing to do with any of your ratios or your credit or anything you are doing. 

In fact, there is a recommended strategy for obtaining single family home mortgages, there is a limit to how many you can now get apparently.


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## sprocket1200 (Aug 21, 2009)

i agree with berubeland. as a shareholder, I like that they are helping protect me for when the correction comes.


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## marina628 (Dec 14, 2010)

I am not buying million dollars homes and renting them so any correction would never put me at risk.Obviously if i can put down 35% on property #5 I have the assets to support the mortgages.You have to worry about the people buying homes with 5% down then doing 5% cash back mortgages not me


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