Changes to Income Property Lending
My “easy” button didn’t work today so I’m turning to the experts.
Ottawa’s Mortgage Brokers weigh in with their opinions and experiences on the changing lending rules for income properties.
A research project.
by Dave Williams
As a result of some recent analysis on property sales in Ottawa ( My 2012 roundup series) I noticed a sharp decline in income properties sales and a slide in average prices.
A chat with one mortgage broker revealed that the banks themselves have been tightening up their lending rules, or at least a few that she worked with.
What I’m hoping to do is collect some more experiences from Mortgage Brokers of how they have noticed the lending rules have/haven’t changes in the last 6 months in regards to income property lending.
Please weigh in below with your comments and experiences.
The Tulip Team Blog 
Some banks have been tightening their TDS/GDS regulations as well as how much rental income they would accept towards income for their calculations. When you do find a good mortgage agent, they will go the extra distance to find a lender that will work for your situation. So yes, a few lenders have dropped off, but then again there are lenders that know a good business proposal when they see them. A good agent can articulate well to the lender and go above and beyond their job.
Too true Nick, have you had to shop around much with your income clients? We’ve seen a couple situations last year where our buyers had to switch lenders in the 11th hour.