Interm Financing

[r3ccOs]

First off I work for the bank, ATB in specific

I was told, there is no more interm financing for mortgages...

Scenerio, I need to sell my townhome in Evergreen for the equity to put into my new home.

In the past, I was approved with interm financing, as I'll be building, granted it was assumed that I would be selling my place.

Now I was told I had to sell my place first, which I could not put a condition for sale, as I can't approve to buy a new home anyways until I have "cash on hand"

what the hell?

[quazimoto]

Are you trying to borrow the down payment for the new home by chance? If you are that is more so where the problem is. I'm fairly sure banks will not finance money for the downpayment on the home. I would suggest talking to the builder. I mean they do have those you build with us and we sell your home things.

Even then many builders are extremely skeptical when you don't have a good down payment since a lot of builders have numerous houses in every community that they got stuck with.

[lint]

^^^ he's talking about bridge financing

[ExtraSlow]

I did bridge financing in April, no problems.

[bg_27]

you can only get bridge financing if you have a FIRM sale of your house (always been this way), unless you get private lending or do equity lending (HELOC) on your existing house.

[r3ccOs]

Just found out, that 3 of the four builders don't care whether you have pre-approval as things change alot within the 9 months it takes to build and that rates can only be secured for a max of 6 months with most financial institution

[lint]

can you handle the mortgage on both properties at the same time?

[barmanjay]

You can only get interm/bridge financing when you have a purchase contract in place.

Mind you, the brokers should be able to pre-qualify you for it.

If they aren't offering it to you anymore, then you might not have as much equity as you think.

[rizfarmer]

I assume you don't work in a lending department of the bank since you are asking beyond for banking advice. The quick answer is you don't have the capacity to handle two mortgages at once so your choices are to either sell your condo prior to your next home owning asperation or find a builder who will work with you to start construction on your next house while helping you to sell your condo.

[r3ccOs]

Originally posted by barmanjay
You can only get interm/bridge financing when you have a purchase contract in place.

Mind you, the brokers should be able to pre-qualify you for it.

If they aren't offering it to you anymore, then you might not have as much equity as you think.

I can't pre-qualify for both properties. My spouce & I do well, but just not well enough, even with the equity we intend to use to put down on the new place.
Should perhaps I look at something just a bit less, absolutely I can. However this whole thing is not about whether my TDSR is maxed our and whether I'll be mortgage poor.

No I don't work in lending, I'm an IT geek, however the lending guidelines have tightened in the last 8 months, my other half being a personal banker at HSBC also too has been unable to provide for others the service that we even require.

That being said, you are right and I can likely get a pre-auth letter drafted by a Mortgage broker, which I'll be approaching this morning. As well RBC apparently can also provides this service on a case by case situation.

In regards to the "available equity", "debt" and "credit. Well its all in good standings, as I have about a realistic $140k in equity in my current home, no personal debt... I love not having car payment and a becon score in the mid to high 700s, of which my other half is higher. Let alone that I have a fair amount of RRSPs also as collateral, but again due to the market collapse, not taken into concideration anymore.

You would think the math would add up, as our total gross income is very reasonable... but my own bank isn't willing to negotiate.

[lint]

Originally posted by r3ccOs
I can't pre-qualify for both properties. My spouce & I do well, but just not well enough, even with the equity we intend to use to put down on the new place.
Should perhaps I look at something just a bit less, absolutely I can. However this whole thing is not about whether my TDSR is maxed our and whether I'll be mortgage poor.

...

You would think the math would add up, as our total gross income is very reasonable... but my own bank isn't willing to negotiate.

Which is it? You either can't pre-qualify or you can. If you can't pre-qualify, why do you think the math adds up? And from the lenders perspective, this is all about TDSR.

[r3ccOs]

Originally posted by lint


Which is it? You either can't pre-qualify or you can. If you can't pre-qualify, why do you think the math adds up? And from the lenders perspective, this is all about TDSR.

Nope, we can't pre-qualify for both mortgages, which is why we need a "Bridge" pre-auth letter indicating the condition is that we are intending to sell

[s2k_boi]

I don't think you need the bridge man. As mentioned above are you trying to get money out of your home for a deposit to the builder?

Bridge is to fund the the difference you need for down payment if the sale of the house is different from your possession date of the new place.

ATB should have no issue giving you a pre-qual letter saying your approved for the mortgage subject to the sale of your existing property.... I'm not sure why HSBC can't do this either but most institutions will be glad to give you that if your TDSR is fine / credit as you already mentioned.