Sunday, March 23, 2008

CMHC Update clients can now purchase rental properties (up to 4 units) with as little down as 5%

CMHC Update on investment property purchase

CMHC has just released an update where clients can now purchase rental properties (up to 4 units) with as little down as 5%.
And mortgage lenders are now allowed to use 80% rental income offset which makes it much easier for you to qualify! Let me know if you require more details and I will put you in touch with my mortgage people.
Thank you and all the best!

read more about:Homes for Sale

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,


A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987

( BUS 905-828-3434
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Homes for Sale


  1. Dear Mark,

    I have been reading your blog for a long time and your new years resolution (where you predicted prices will go higher in Toronto for 2008) encouraged me to buy a house in richmond hill area, but now that the new 2008 data is coming out, I am worried that the market is losing momentum and I might lose my money because apparently the boom days are over and sales are going down, what do you think? do i keep my house or do i sell it with 10-15K loss to prevent further loss that might strike ? (i would love to hear from you in) email:

  2. Hello Nima,

    Thank you for your real estate inquiry. I would keep the property, no point in paniking. The market is doing just fine. In spite of our very cold, long and snowy winter, prices are up, March market was very good and April should be on fire. See prices here:
    Please let me know if you have any other questions or if there is anything else I can help you with.

    Thank you again for contacting me and I will do my best to help you with your real estate needs,


  3. Nothing personal Mark, but I have to disagree with you. Generally you are on the ball and I love the fact you provide all this information to your prospective clients.

    In my opinion, the affordability of homes in Toronto is an extreme problem, since the average/median home price is well beyond the means of the average/median income. Personal savings rates are at all time lows, and the only reason that home prices can continue to increase is because these Zero-down or 5% down mortgages and 40 year terms have started to spread like a virus throughout the market. The supply/demand equation is broken because the demand is artificially driven by these exotic mortgage products. Very few first-time buyers would (or could) purchase a home at 20% down and 25-year terms at current prices because the monthly payments would be brutally high. This is not a scenario under which a non-biased person can expect continued long-term growth.

    Furthermore, there is much evidence that speculation is rampant in Toronto, with as many as 60% of new homes/condos being purchased by speculators!! Given that it is now clear that the US is in a severe recession (150,000 jobs lost in 2008 to date), and that Canada (and particularly Ontario) is likely to follow suit, there will be job losses and foreclosures which will put downward pressure on prices.

    That being said, to your first poster, the decision to sell or hold is difficult. There are many factors to consider, particularly the fees involved in the sales transactions. (5% approx to realtors, etc). A quick buy/sell essentially means you are immediately losing 10% of your purchase. Other factors include how long you plan to live in the house, and whether or not you could continue to afford your mortgage payments if you lost your job (or perhaps your spouse/sig other lost their job, if applicable). Personally I think family mortgages should only be given based on one income in a two-income home, with some exceptions.

    The historical norm for home prices is that you can afford a home approximately three times your net income. If your income is $100k, you shouldn't spent more than $300k on a home. (and that is of course after putting 20% down, and having savings in the bank for emergencies).

    All these factors and more, in my opinion mean that while prices may continue to increase or stagnate for the next while (say 6-12 months), in the long haul we are WAY overdue for a SIGNIFICANT price correction.

    Again, that's just my two cents.