Ontario Canada, there must be a reason why they do not want to renew it. Are you in default ? What circumstances do you have that made the lender reject your renewal. Could it be that what you owe is higher than what the value of the property is ? If you can tell me the reason, I may be able to give you a more definite course of action - email me victor_catalan@centum.ca

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How much are the interest rates in canada expected to rise over the next few years? i am locked into a 5 year mortgage at a rate of 4.49%. in looking around, i have a mortgage broker who can offer me prime - .1 % over a 5 year term--which would be 2.15%. my question is, if i were to pursue this avenue, are the interest rates projected to rise above 5% in the next 5 yrs or so? additionally, how much longer will prime remain at 2.25%? it will cost approx $2000 to break the current mortgage--is it worth it?

Read all the fine print with mortgage brokers they have many hidden fees and costs. Have you already forgot how the mortgage crisis started in the US? As far as costs go every 1% less on interest rates can save you around $100 a month on payments (for a $200,000 mortgage) The rates are predicted to remain low until around 2012 now. (My wife is an account manager at RBC). So if you lock in that cheap right now you could come into a renewal at some high rates!

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My husband and i got a home equity line of credit a year and a half ago for the purpose of investing in a rental real estate property. we live in a state with pretty high home prices, even in this current market, so with the amount we have available to us, we would only be able to afford to buy 1 home locally to rent out. but after adding up all the extra costs we would have, the income we'd be getting from rent would only make us break even and wouldn't be worth it. there is a vacation town near us in the mountains that has attractions all year round, skiing, shopping, hiking, fishing, water fun, etc. and i was looking into maybe purchasing a vacation rental there. i found a property there we can afford. i called around to places that manage rentals of similar vacation homes. it seems comparable properties make between $28,000 - $29,000 a year -- this has the potential of being more profitable for us than a rental home, where there is month-to-month rent. even after using all the funds remaining in our equity loc, we'd still have over 50,000 of equity in our home. but i'm afraid that with things being the way they are, the funds will soon no longer be available to us because of the banking situation. we may soon get a notice, as others have that the bank won't let us have the funds they loaned to us from our home's equity. and with mortgage rates so low, it seems like now is a good time to jump on this opportunity. yet, with a vacation rental, there's not a steady income like there would be in a rental home. and with the economy being the way it is, there is a risk that not as many people will be taking vacations here in the near future. so, what do you think? should we do it? or let this opportunity pass us by, for now?

You should never jeopardize your home on a gamble. Using your primary residence equity on purchasing rental property is just as risky as blowing it at a casino. Strangers coming and going. Who cleans the house between guests, Fire and theft insurance, liability insurance, real estate taxes, income taxes, repairs. Furnishings, Are you prepared for all that is involved? Suggest you research other ways of raising capital and leave the equity in your home for real emergencies.

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Hi there - my husband and i got a home equity line of credit a year and a half ago for the purpose of investing in a rental real estate property. we live in a state with pretty high home prices, even in this current market, so with the amount we have available to us, we would only be able to afford to buy 1 home locally to rent out. but after adding up all the extra costs we would have, the income we'd be getting from rent would only make us break even and wouldn't be worth it. there is a vacation town near us in the mountains that has attractions all year round, skiing, shopping, hiking, fishing, water fun, etc. and i was looking into maybe purchasing a vacation rental there. i found a property there we can afford. i called around to places that manage rentals of similar vacation homes. it seems comparable properties make between $28,000 - $29,000 a year -- this has the potential of being more profitable for us than a rental home, where there is month-to-month rent. even after using all the funds remaining in our equity loc, we'd still have over 50,000 of equity in our home. but i'm afraid that with things being the way they are, the funds will soon no longer be available to us because of the banking situation. and with mortgage rates so low, it seems like now is a good time to jump on this opportunity. yet, with a vacation rental, there's not a steady income like there would be in a rental home. and with the economy being the way it is, there is a risk that not as many people will be taking vacations here in the near future. so, what do you think? should we do it? or let this opportunity pass us by, for now? the home prices in the area right now start from the high 200's to the millions (i think the highest listing i saw on there was 2.25 million). i don't know how high they became during the boom, i'd have to ask my realtor to look up sold properties on the mls for that info. another real estate investor i talked to last week said the home prices in the area went up 17% last year.

what is the trend of home prices in the area? how high did they go in the boom, relative to inflation? this latter can be measured on a per square foot basis over the 1996 to 2006 period. Inflation was 28.5% over that time according to the Bureau of Labor Statistics, and wages when up about 49% in that decade according to the Social Security Administration.

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We do not have a steady income but can get the money to buy the home cash through family members. probably equity on another property if the landlord quitclaims the property to us would the taxes remain the same as they are now. would he have to declare capital gains on his taxes. if the capital gains exclusion is $250k would he only pay on the money over that? could he gift $10k for whatever is the current amount to his son, daughter-in-law, grandson and granddaughter? when we record the deed can we say it was a gift and keep the transaction private. our landlord is 83 years old, same as our grandfather. what is the best way to approach this. do we offer him market value or a round figure less than. when we get the equity loan to cash him out we want to pay all our bills, about $50k. then we would get a new first mortgage on the house in about six months and pay off the equity loan, having only paid the interest on the equity loan for 6-9 months. we have been renting for over 10 years and made a lot of cosmetic improvements. the house and lot are small but we have a in ground pool and it an ideal location. it is worth about $450k now but in times past has been worth $600k. it is 60 years old needs plumbing, electrical and roof, and is only 2bdrm 1 bath but nothing is actually broken and everything is working fine. we would add another bath and probably another story to the garage and eventually to the main house, building up as our neighbors have done.

You need to record this appropriately, and make sure you have the house appraised so you are paying fair market value. Otherwise his heirs will be all over you for fraud. You need to be very careful buying from anyone who may be considered an easy target. It is already apparent that you have no trouble with committing fraud, but his children may assure that you end up in federal prison for it. He has to pay capital gains on 100% of the profit. There are no exclusions for investment property, only your primary residence. Gifting will not change his taxes. If he gifts the property to you he does not pay the taxes, you do, on the full value, so more then his capital gains would be.

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I am locked into a 5 year mortgage at a rate of 4.49%. in looking around, i have a mortgage broker who can offer me prime - .1 % over a 5 year term--which would be 2.15%. my question is, if i were to pursue this avenue, are the interest rates projected to rise above 5% in the next 5 yrs or so? additionally, how much longer will prime remain at 2.25%? it will cost approx $2000 to break the current mortgage--is it worth it?

To start with BoC overnight rate. They are saying to keep 2.24 for next six months. If so, mortgage rates will remain close to what we have now. You can not count on it hundred %. Everything depends what is happening in our economy. Now, mortgage rate of 4.49% is good. This is fixed rate. Another one, 2.15 % must be variable rate. Nothing wrong with it. If You go for variable rate make sure You negotiate #1 no administrative nor any other fees. It works this way. You have to ask. They do not tell You. #2 is: in contract about switching to variable rate, make sure it is stated that You can switch back into fixed one any time. And once You are in variable rate just watch mortgage rates. If rates started going up switch into fixed one . Even if You are to pay $ 2000 it is easy to make calculation how much You are saving in interest by comparing fixed rate epense with variable rate expense over an one year period. Hovewer i am telling You : no fees. Only if You are going to renev Your mortgage contract early then there are some fees. Not significant fees.