I found a new duplex in vancouver and the price is arround 415k. 2 Bedroom up and 2 down with one and 1/2 bath up and only one bath down. one kitchen down and builder says they can build one up. Their are 2 duplex front and back. The back one has a beautiful view and and little bigger yard then the front one. Now as I am a new immigrant so I am kind of thinking :
Should I go for this brand new house as we are family of 4 with two little kids. Their is no appliances. The rooms are not very big and the size of duplex is 1200sq compare to the other we see are 1300 the difference is the price the other duplex we saw are 1 to 3 year old but are arround 425k
I want to only put 40k down including closing cost etc. is it possible for bank to prove my mortgage for self employed with one year credit history under new immgrant insurance GE.
The other question is should I go for new house or 2 year old for little more money.
Is it better to go for front duplex or back one?
Does the resale goes up if the view is good from back side?
I know front duplex has more values but this guy is selling all fro the same price. th difference is front has small yard and no view and back has a very beautiful relaxing viex and little bigger yard with some privacy.
The builder price is 400K plus GST howmuch and what can I negotiate with him or to put the offer and what steps I need to take before or during putting the offer. My realtor is after me saying that we should put offer immed with subject to mortgage approval. What are the pros and cons one should look before making this big move. Thanks for your help.
Quote:
Originally posted by goingtocanada
I found a new duplex in vancouver and the price is arround 415k. 2 Bedroom up and 2 down with one and 1/2 bath up and only one bath down. one kitchen down and builder says they can build one up. Their are 2 duplex front and back. The back one has a beautiful view and and little bigger yard then the front one. Now as I am a new immigrant so I am kind of thinking :
Should I go for this brand new house as we are family of 4 with two little kids. Their is no appliances. The rooms are not very big and the size of duplex is 1200sq compare to the other we see are 1300 the difference is the price the other duplex we saw are 1 to 3 year old but are arround 425k
I want to only put 40k down including closing cost etc. is it possible for bank to prove my mortgage for self employed with one year credit history under new immgrant insurance GE.
The other question is should I go for new house or 2 year old for little more money.
Is it better to go for front duplex or back one?
Does the resale goes up if the view is good from back side?
I know front duplex has more values but this guy is selling all fro the same price. th difference is front has small yard and no view and back has a very beautiful relaxing viex and little bigger yard with some privacy.
The builder price is 400K plus GST howmuch and what can I negotiate with him or to put the offer and what steps I need to take before or during putting the offer. My realtor is after me saying that we should put offer immed with subject to mortgage approval. What are the pros and cons one should look before making this big move. Thanks for your help.
It is going to be a very big commitment.
First of all getting approved for the mortgage would be really very tough (though not impossible)under self employed program through GE as they would ask a minimum of 2 if not 3 years self employment proof. You mentioned that you are a new immigrant and I am guessing that you might not fulfil this requirement as you only have 1 year credit history.
If some one having job wants to get approved for this big mortgage he/she must have an income (family income) of around $100 k or over to carry this mortgage.
The realtor is after his commission only and may not be looking for your best interest and once you get stuck with this he would try to get the mortgage approved by B lenders who may not give you the best rates.
Now consider these facts:
If you put 10% down payment and get the house for $400 k, then you would need a mortgage of around $368,000 and your monthly mortgage payments on todays best interest rates would be as follows:
on 25 year amortization................................$2,200 plus
on 30 year amortization.................................$2,000 plus
on 35 year amortization..................................$1,900 plus
On top of it you would have to pay property tax, insurance, utilities of app. $500 per month. So, you can calculate your monthly commitment towards the house.
However, if you end up paying more for the house or pay less then 10% down payment or do not get the mortgage from Banks at the best rates, your monthly commitment could go well over $2800 per month for the house alone.
Moreover, the house is a duplex with only 1200 sq. feet and the cost is really too much as the house prices are very much inflated now a days in Vancouver, Calgary and here in GTA (Toronto). So, please take all the facts in to consideration and then decide. If you need any more help you can email me for guidance or can go on my website (the link is down below) or any bank's website and put the numbers there and calculate the payments or affordability your selves.
Good Luck.
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
Posts: 5775
Location: God's own country
Posted on: 25-05-06 10:09:49
Location: God's own country
Posted on: 25-05-06 10:09:49
Good reply, Pramodji!
TK
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I am a Gents and not a Ladies.
Quote:
Originally posted by tamilkuravan
Good reply, Pramodji!
TK
My personal opinion is that instead of spending so much time on this board and replying to each and every thread and advising people you should spend more time in doing constructive and good work in office, stop hiding things from your wife and spend some quality time with her (since you hide your share trading losses, and sit in the office till late everyday for the work you could have finished much earlier had you not been spending so much time on CD). This will really make you what you deserve to be – a great person with a lot of knowledge, instead of what you are presently – a clown.
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If we can unite, we can be the greatest!
Quote:
Originally posted by Pramod Chopra
Quote:
Originally posted by goingtocanada
I found a new duplex in vancouver and the price is arround 415k. 2 Bedroom up and 2 down with one and 1/2 bath up and only one bath down. one kitchen down and builder says they can build one up. Their are 2 duplex front and back. The back one has a beautiful view and and little bigger yard then the front one. Now as I am a new immigrant so I am kind of thinking :
Should I go for this brand new house as we are family of 4 with two little kids. Their is no appliances. The rooms are not very big and the size of duplex is 1200sq compare to the other we see are 1300 the difference is the price the other duplex we saw are 1 to 3 year old but are arround 425k
I want to only put 40k down including closing cost etc. is it possible for bank to prove my mortgage for self employed with one year credit history under new immgrant insurance GE.
The other question is should I go for new house or 2 year old for little more money.
Is it better to go for front duplex or back one?
Does the resale goes up if the view is good from back side?
I know front duplex has more values but this guy is selling all fro the same price. th difference is front has small yard and no view and back has a very beautiful relaxing viex and little bigger yard with some privacy.
The builder price is 400K plus GST howmuch and what can I negotiate with him or to put the offer and what steps I need to take before or during putting the offer. My realtor is after me saying that we should put offer immed with subject to mortgage approval. What are the pros and cons one should look before making this big move. Thanks for your help.
It is going to be a very big commitment.
First of all getting approved for the mortgage would be really very tough (though not impossible)under self employed program through GE as they would ask a minimum of 2 if not 3 years self employment proof. You mentioned that you are a new immigrant and I am guessing that you might not fulfil this requirement as you only have 1 year credit history.
If some one having job wants to get approved for this big mortgage he/she must have an income (family income) of around $100 k or over to carry this mortgage.
The realtor is after his commission only and may not be looking for your best interest and once you get stuck with this he would try to get the mortgage approved by B lenders who may not give you the best rates.
Now consider these facts:
If you put 10% down payment and get the house for $400 k, then you would need a mortgage of around $368,000 and your monthly mortgage payments on todays best interest rates would be as follows:
on 25 year amortization................................$2,200 plus
on 30 year amortization.................................$2,000 plus
on 35 year amortization..................................$1,900 plus
On top of it you would have to pay property tax, insurance, utilities of app. $500 per month. So, you can calculate your monthly commitment towards the house.
However, if you end up paying more for the house or pay less then 10% down payment or do not get the mortgage from Banks at the best rates, your monthly commitment could go well over $2800 per month for the house alone.
Moreover, the house is a duplex with only 1200 sq. feet and the cost is really too much as the house prices are very much inflated now a days in Vancouver, Calgary and here in GTA (Toronto). So, please take all the facts in to consideration and then decide. If you need any more help you can email me for guidance or can go on my website (the link is down below) or any bank's website and put the numbers there and calculate the payments or affordability your selves.
Good Luck.
Hello Prmod ji,
Thanks for your reply. The reason for our interest in this duplex is that 1st this is a brand new and still at lower side compare to any other duplex or house we have seen in the market. The realtor is saying that we can put the condition with subject to mortgage approvel the market is very hot in BC and its very hard to find the house. The reason I am inerested in duplex with 4 bed is that I am planning to rent the basement for approx 850PM and if mortgage for the house is 2200 then I only pay 1150 pm plus half utility and property tax etc. Thats is the current trend in vancouver. So do you think its a good investment if I get approved for mortgage. Please help me clear some more.
Is the basement completed. In most new homes they are not. If not add those costs and cost of fixtures etc to see if the budget still fits.
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Quote:
Originally posted by goingtocanada
Hello Pramod ji,
Thanks for your reply. The reason for our interest in this duplex is that 1st this is a brand new and still at lower side compare to any other duplex or house we have seen in the market. The Realtor is saying that we can put the condition with subject to mortgage approval the market is very hot in BC and its very hard to find the house. The reason I am interested in duplex with 4 bed is that I am planning to rent the basement for approx 850PM and if mortgage for the house is 2200 then I only pay 1150 pm plus half utility and property tax etc. That's is the current trend in Vancouver. So do you think its a good investment if I get approved for mortgage. Please help me clear some more.
If you rent the basement for $850 pm then does that include utilities or are they separate? Because if they are separate, then the tenant should be willing to pay around $1000 pm. If that's the case, then you certainly would be covering approximately 35% - 40% of house expenses from your basement income.
Secondly, we consider on average that a house will bring only 10 months rent. The 2 months rent margin is for vacant property and other expenses related to tenants. Hence you should consider this fact also.
I would suggest you to get your self pre approved and find out how much you can get approved for and the conditions you would have to meet before putting an offer. This does not take more than a day or two and would certainly help you in deciding about the monthly expenditure you would have to do on your housing. As you have not mentioned about your self employed status or income level, I am doubtful of your getting best rates under self employed program and as I mentioned earlier, this could mean that your mortgage payments could be much higher.
If you need my help in pre approval, then you can apply on line on my website with details and I can let you know if you would qualify for best rates or not. Alternatively, email me ( you can get my email address from my website) with your income, job and down payment details and I would let you know what rates and mortgage payments to expect in your scenario.
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
