Canadians eager to buy a home as the real estate market cools might find themselves considering micro-condos, but mortgage brokers say if you're thinking small, prepare for extra caveats when seeking financing.
Brokers say many bank's underwriting policies limit how small a condo can be -- typically 400 or 500 square feet -- to land their financing, and sometimes subject buyers of even smaller units to extra conditions or necessitate exceptions to get a mortgage.
"Sometimes a lender will make an exception if you have a great credit score great job," he said."Even if you're a little under their minimum , they might still do it." Banks adapted by adjusting their underwriting policies to allow for smaller condos, but many have extra requirements at small sizes, Friesen said.
"Someone who's putting 20 per cent down is way riskier in the bank's eyes than somebody who's putting five or 10 per cent down because … a borrower with less than 20 per cent down has to pay this mortgage insurance, which again, protects the bank in the event that there's a default on the client side," Friesen said.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
The Week Ahead: BMO earnings, Canadian GDP for Q2, U.S. jobs report - BNN BloombergA look at what investors will be watching in the week ahead.
Read more »
BlackBerry headed for silver screen after film wraps production - BNN BloombergThe BlackBerry is getting another turn in the limelight after a film that explores the history of the once popular smartphone device wrapped production.
Read more »
Oil edges higher as supply concerns eclipse U.S. Fed's rate stance - BNN BloombergOil climbed as traders weighed risks to the supply outlook against pledges from leading central banks to raise interest rates further.
Read more »
U.S. futures sink and bonds slump as dollar climbs - BNN BloombergBonds in Europe led a global selloff that lifted the two-year Treasury yield to levels last seen in 2007 as ECB policy makers joined their Fed counterparts in signaling aggressive tightening. Stocks sank with US futures and the dollar climbed.
Read more »
'Quiet Quitting' an opportunity for employers to help reshape the workplace - BNN BloombergConversations about 'Quiet Quitting' are everywhere these days, and one expert says it's a 'profound opportunity' for Canadian companies to get it right with employees and improve the work landscape for the future.
Read more »
Mickey Mantle card sells for record US$12.6M as sports memorabilia soar - BNN BloombergA mint condition Mickey Mantle baseball card sold for $12.6 million, blasting into the record books as the most ever paid for sports memorabilia in a market that has grown exponentially more lucrative in recent years.
Read more »