Real Estate Professional forum is the place for positive industry interaction and welcomes your professional and informed opinion.

pre-construction re-financing?

Notify me of new replies via email
Penny L. | 26 Jan 2015, 09:14 AM Agree 0
I've had some of my clients ask about refinancing for their condos - even though it's still under construction! I'm not sure what to tell them - is that even possible? One of them was just pre-approved, but another one doesn't have a mortgage at all. What should I tell them?
  • EddieN | 26 Jan 2015, 10:43 AM Agree 0
    How can you "re-fanance" something that hasn't been financed? If they are looking to borrow against their deposits, they are out of luck. They can only get financing once they are informed by the developer that the building has been registered. Your clients will have to get their conventional financing based on the project and their deposits. After closing, they can be refinanced. I wrote a business case for financing such deposits and tried to find backers. I went to see some big boys but got turned down at every corner. Good luck to your clients. The only people who should buy pre-construction condos are the ones who can afford it, and steer people away from large expensive units.
  • MortgagesByDeepak.ca | 02 Feb 2015, 07:15 PM Agree 0
    Refinancing is only possible when a mortgage exists. In this case, as the closing has not yet taken place and no mortgage has yet been registered, refinancing is not possible. Refinancing basically means replacing an existing loan with a larger loan. If your client is asking about the possibility of "refinancing" now (which is not possible anyways), chances are they need money ---- in which case, they could consider reducing their down payment when the mortgage funds so that they can keep some funds in their pocket and have more financed. i.e. If the total builder's deposits requirements worked out to about 20% of the purchase price (which is quite common today, especially in Toronto), they could ask their Mortgage Broker to see if they can qualify for financing up to a maximum of 95%, which would allow them to get a good chunk of their deposits given to the builder back upon closing. I would advise them to speak to their mortgage broker to go through the details. Hope this helps!
  • Kimberly | 16 Jan 2017, 03:42 PM Agree 0

    Testimony”” You should not miss this opportunity [My name is Mrs.Kimberly Fararre. I live in Texas United State Of America and i am a happy woman

    today? and i told my self that any lender that rescue my family from our poor situation, i will refer any person that is looking for loan to Them,They

    gave me happiness and my family.I was in need of a loan of $90,000.00 to start my life all over again as i am a single mother with 3 kids. I have been

    searching for a loan to settle my debts for the past three months all I met is scammed and took my money until I finally met a God sent Lender. I never

    thought that there are still genuine loan lenders on the internet but to my greatest surprise i got my loan without wasting much time.I met this honest

    and GOD fearing loan company that help me with a loan of $90,000.00US Dollars.If you are in need of loan to solve your problems and you will pay back

    the loan please contact Viva Loans now tell them that is Mrs.Kimberly Fararre that refer you to Them. Contact AMERIQUEST MORTGAGE LOANS LOANS now ,via

    email: ( ameriquestmortgagefinancialser@gmail.com)..
  • Nelly Richard | 25 Mar 2017, 05:01 AM Agree 0
    I got my already programmed and blanked ATM card to
    withdraw the maximum of $50,000 MONTHLY for a maximum of 12 MONTHS. I am so happy about this because i got mine last week
    and I have used it to get $150,000 already. Georg Bednorz Hackers is giving
    out the card just to help the poor and needy though it is illegal but it
    is something nice and he is not like other scam pretending
    to have the blank ATM cards. And no one gets caught when
    using the card. get yours from Georg Bednorz Hackers today! Just send an email
    to georgbednorzhackers@gmail.com
  • DanielHacker | 28 Jun 2017, 01:26 AM Agree 0
    I got my already programmed blank ATM card to withdraw a maximum of $5,000 daily for 30 days. I am so happy about this because i got mine last week and I have used it to get $45,000. Daniel is giving out the card just to help the poor and needy though it is illegal but it is something nice and he is not like other scams pretending to have the blank ATM cards. And no one gets caught when using the card. get yours. Just send him an email on info.blankatm2012@gmail.com
Post a reply