MORTGAGES VANCOUVER  
Tips, Advice, and Explanations from a Vancouver Mortgage Broker  

Posts Tagged ‘hard’

What Properties are Hard to Get a Mortgage On? Vancouver Mortgage Broker Rowan Smith Explains

Sunday, March 25th, 2012

Transcript of Video Blog:

Hi everyone. Rowan Smith from the Mortgage Centre. I want to talk today about properties that are difficult to finance. I’ve run into a whole bunch of these in the last couple of weeks so I thought it would be pertinent putting out an actual post to explain properties that you may or may not have problems with.

First off, log homes. A lot of lenders just have a policy they don’t lend on log homes. I don’t really know why it is. I guess they view it as a slightly inferior security or a fire risk or what have you but log homes can present a problem. There’s lenders that will still do them, though.

Former marijuana grow ops. Another big one. There is lenders that will still do those. Check my other posts on the side. There’s plenty I’ve done on what you need to for a former grow op. Another property that often appears very, very appealing to investors but are difficult to finance are residential homes that have more than four living units. Anything with four units or less is generally considered residential. As soon as it hits five it’s considered a commercial mortgage or commercial property.

If you’ve got a home that’s got two basement suites, a loft, and a main floor that’s residential. They’re all over Vancouver. If you’ve got something that’s got two in the main, two lofts, and two basement suites that’s six. Again, there’s several of these older, larger character homes throughout Vancouver. It’s technically a commercial mortgage. You’ll have a lot of problems with the banks.

Properties that are sitting on large parcels of land, acreage, or they’re very rural. Banks don’t want to be sitting on something in foreclosure for months and months or years and years and years. If something’s massive acreage and if the land makes up a disproportionately large percentage of the value it can be tricky to finance those as well.

Float homes, mobile homes, manufactured homes, homes that are sitting on concrete blocks even if it’s the norm in the area are all quite difficult to finance in many cases. Commercial properties, whether it’s a strata property or whether it’s a massive commercial industrial process you need to be dealing with a commercial bank, commercial lender, or commercial mortgage broker for those.

That’s an example of some properties that can be difficult to finance for one reason or another. If you know any people that have properties like this they’re looking at, they’ve fallen in love with, and just because the bank doesn’t think it’s a great idea doesn’t mean it’s not a great purchase and not perfect for you. It may well be.

In those circumstances, please give me a call. I may have a solution or a lender that you’re unaware of and still get you that same great rate that you see on TV. My name is Rowan Smith at the Mortgage Centre.