# Non-Owner Occupied Current rates.



## KelownaCondo (Oct 7, 2017)

Anyone been hunting down the current rates on Non-owner occupied rates lately, as in 2018? 20% down.5 year term I'm finding anywhere from 3.5-4 %


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## Mortgage u/w (Feb 6, 2014)

That's pretty much what you will get. You may find a little cheaper if you put less down but the insurance premium will offset any gains.

I suggest you look for a good HELOC product rather than shop for best rate. The product is more important than your rate - especially for rentals.


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## KelownaCondo (Oct 7, 2017)

Mortgage u/w said:


> That's pretty much what you will get. You may find a little cheaper if you put less down but the insurance premium will offset any gains.
> 
> I suggest you look for a good HELOC product rather than shop for best rate. The product is more important than your rate - especially for rentals.


Thanks for the reply.

Right now Scotia is offering me the best deal. I will have to follow up with what they offer for HELOC. Looking at picking up another pre construction unit this summer. Condo has plenty of equity in it for another down payment.

Just to pick your brain..whats your opinion about 25 vs 30 year terms?

Thanks


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## Just a Guy (Mar 27, 2012)

Get a 30 year term, make payments as if it's a 20 year term. That way, if you run into trouble, you can lower your payments without renegotiating.


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## KelownaCondo (Oct 7, 2017)

Just a Guy said:


> Get a 30 year term, make payments as if it's a 20 year term. That way, if you run into trouble, you can lower your payments without renegotiating.


I was leaning towards the 30. Thanks


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## marina628 (Dec 14, 2010)

We recently looked at a new construction condo project but they wanted $90,000 in deposits in 120 days and that's outside of my comfort level for new construction.My friend bought a new home in Pickering for around 900k and with the price drops by time it is built may only be worth $780,000 according to the builders own rep but she is still on hook for the full price.


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## Mortgage u/w (Feb 6, 2014)

KelownaCondo said:


> Just to pick your brain..whats your opinion about 25 vs 30 year terms?
> 
> Thanks


For rental, I always prefer a longer amort. There is no hurry to pay off the loan and interest is all tax deductible. 

You also have more flexibility in terms cash flow. You can accelerate repayment if you have a good cash flow just as you can reset your term higher to make smaller payments and increase cash flow - you tend to see the effect most at renewals due to the new rate chosen.

If it were your personal home, I would choose the lowest term.


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## KelownaCondo (Oct 7, 2017)

marina628 said:


> We recently looked at a new construction condo project but they wanted $90,000 in deposits in 120 days and that's outside of my comfort level for new construction.My friend bought a new home in Pickering for around 900k and with the price drops by time it is built may only be worth $780,000 according to the builders own rep but she is still on hook for the full price.


Yeah with a price tag that high i don't know if i would go the pre-construction route. Thats crazy.

Its a toss up. Luckily it worked in my favor this time.


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## KelownaCondo (Oct 7, 2017)

Mortgage u/w said:


> For rental, I always prefer a longer amort. There is no hurry to pay off the loan and interest is all tax deductible.
> 
> You also have more flexibility in terms cash flow. You can accelerate repayment if you have a good cash flow just as you can reset your term higher to make smaller payments and increase cash flow - you tend to see the effect most at renewals due to the new rate chosen.
> 
> If it were your personal home, I would choose the lowest term.


Thanks for the clarification. Its a learning process for me right now.


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