Now CMHC has decided it is going to let Canadians buy investment properties with no down payment.

You have to wonder what David Dodge will be thinking this time. Just over a year ago, the Bank of Canada governor met with Canada Mortgage and Housing Corp. because of his fears exotic mortgages were juicing an already robust Canadian housing market. Now CMHC has decided it is going to let Canadians buy investment properties with no down payment.

The Crown corporation, which controls about 70% of the mortgage insurance market in Canada, has quietly introduced changes that lower the down-payment threshold for an investment property. Instead of needing 15% down, Canadians will be able to buy a second property -- not to mention a third and fourth and fifth -- with no money down.

"These enhancements will ensure continued supply of affordable rental accommodations across Canada," said Pierre Serre, vice-president of insurance products with CMHC.

Investment Clubs

One of the key principles of investing is the concept of diversification.  That is one of the main benefits of most mutual funds that are available to Canadian investors.  With that concept in mind we can quickly discuss the benefits of joining an investment club.  An investment club is great if all parties that come to the table are able to contribute and spread their individual knowledge and/or research.  An investment club could also be a great sounding board to bounce your investment ideas off of.

 

Do a search on Google for investment clubs and see what they may have to offer you on your goal to financial freedom.

Mortgage deals and mortgage brokers

I'd just like to post some frustration and vent about my current issues. I'm in the process of purchasing a condo-hotel unit in the Quebec area and I have been offered a sweet mortgage rate for 7 years from a national Canadian bank. I have spent literally 2.5 weeks waiting for them to close the deal on the mortgage application.

I spent time calling the guy's assistant and providing her with all of the relevant information and then I find out that no action was taken because I get asked the same questions again and again. I had to ask the developer for an additional week of time, which expired on Friday, and I can sense their frustration with me as well.

The mortgage broker was supposed to get back to me on Friday after I personally ate up my lunch hour and drove through traffic to go and see him face to face. I called and called all to avail. Now, I have to hope that the application was processed on a Saturday, which I highly doubt, and go onto week 3 of just trying to get a mortgage application finalized.

This deal better make millions!!