Angry investors say they are increasingly facing difficulty when trying to re-finance properties and feel “punished” for using real estate to generate wealth
Re-financing properties has become a bigger issue of late, with one investor telling CREW that lenders are “punishing” real estate and other entrepreneurs by being too stringent.
“If an investor chooses a higher interest rate, say between 4 and 4.5 per cent, and despite paying off a mortgage at that rate for three or four years, it is very hard to get a lower rate,” says Toronto-based investor, Sahil Jaggi. “Even with a good track record of paying off mortgage and having a lot of equity, they are just looking at income.”
While agreeing that the government’s move to cool the real estate market back in 2012 has helped the country, he says lenders need to look beyond the balance sheet.
“They really need to look at the person and their mortgage history, and do not just put us all under the one umbrella,” he says.
“I am increasingly spending more time meeting lenders to refinance my units. For example, I am now looking to refinance my condo, a unit that I have been paying at 4.4 per cent. This is time I could be spending looking for more investment opportunities,” he says.
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