In Canada, is a mortgage for arrive different than a mortgage for a house?
I am interested in purchasing some land that I will use for recreational purposes. It isn't plough land and I won't be building a home on it. I have the gift to put up to 75% down in cash, but I would a bit only put 25% down.
Can a traditional mortgage be used to purchase land? Are nearby any differences? I imagine land must be capable of be financed somehow.
Answers:
In Canada, raw land is usually tough to carry a mortgage on through a normal bank. Banks will want 50% down or surrounded by some cases they don't want to touch it unless you are going to build on it eventually.
Credit unions are more open to lands but again, they will want 25% down at least.
Another way to procure it done easier is if you have lots of equity in your house, refinance it to transport the equity out and use that liquid cash to repay for the raw land. You will as ably be able to get a lower rate because its a more physical asset than just raw environment.
Good luck,
Victor
vjanus(a)CanadaMortgageTeam.com Source(s): www.CanadaMortgageTeam.com
www.CMTL.ca
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Can a traditional mortgage be used to purchase land? Are nearby any differences? I imagine land must be capable of be financed somehow.
Answers:
In Canada, raw land is usually tough to carry a mortgage on through a normal bank. Banks will want 50% down or surrounded by some cases they don't want to touch it unless you are going to build on it eventually.
Credit unions are more open to lands but again, they will want 25% down at least.
Another way to procure it done easier is if you have lots of equity in your house, refinance it to transport the equity out and use that liquid cash to repay for the raw land. You will as ably be able to get a lower rate because its a more physical asset than just raw environment.
Good luck,
Victor
vjanus(a)CanadaMortgageTeam.com Source(s): www.CanadaMortgageTeam.com
www.CMTL.ca
Related Questions:
How do I find out what are my rights relating to information obtain by a mortgage lender. Fico score, etc?
I recently fired the mortgage broker on my home re-finance. I've requested my FICO scores and credit report but they beg to be excused to give. Also, paid for appraisal, they...