Mortgages

[Generic]

In Quebec, B&Bs aren't businesses, it's entirely a residential mortgage. The law defines a B&B as being in a personal residence..

In Quebec, B&Bs aren't businesses, it's entirely a residential mortgage. The law defines a B&B as being in a personal residence.

So do many states but that does not mean that mortgage companies have to see it that way. ((
.

So do many states but that does not mean that mortgage companies have to see it that way. ((

I understand. Do you have mortgage brokers? Are your mortgages registered agains the property legally?
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You forget cos you are from canada where banks work nationally and internationally in the USA they are bonkers.
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And in this province we have legal hypothec http://en.wikipedia.org/wiki/Hypothec which means that the order of encumerbances is publicly held and registered. Makes life so much easier.

 

[Joey Camb]

In Quebec, B&Bs aren't businesses, it's entirely a residential mortgage. The law defines a B&B as being in a personal residence..

In Quebec, B&Bs aren't businesses, it's entirely a residential mortgage. The law defines a B&B as being in a personal residence.

So do many states but that does not mean that mortgage companies have to see it that way. ((
.

So do many states but that does not mean that mortgage companies have to see it that way. ((

I understand. Do you have mortgage brokers? Are your mortgages registered agains the property legally?
.

You forget cos you are from canada where banks work nationally and internationally in the USA they are bonkers.
.

in the USA they are bonkers.

MANY things in the USA are beyond bonkers

.

Its just always baffled me that the land of the free and home of free enterprise has so many rules and restrictions which hinder it plus we are known world wide as a conservative country only out done by the Japanese and in my experience we are actually the most liberal as regards free enterprise and lifestyle.

 

[Alibi Ike]

In Quebec, B&Bs aren't businesses, it's entirely a residential mortgage. The law defines a B&B as being in a personal residence..

In Quebec, B&Bs aren't businesses, it's entirely a residential mortgage. The law defines a B&B as being in a personal residence.

So do many states but that does not mean that mortgage companies have to see it that way. ((
.

So do many states but that does not mean that mortgage companies have to see it that way. ((

I understand. Do you have mortgage brokers? Are your mortgages registered agains the property legally?
.

You forget cos you are from canada where banks work nationally and internationally in the USA they are bonkers.
.

in the USA they are bonkers.

MANY things in the USA are beyond bonkers

.

Its just always baffled me that the land of the free and home of free enterprise has so many rules and restrictions which hinder it plus we are known world wide as a conservative country only out done by the Japanese and in my experience we are actually the most liberal as regards free enterprise and lifestyle.
.

Its just always baffled me that the land of the free and home of free enterprise has so many rules and restrictions which hinder it plus we are known world wide as a conservative country only out done by the Japanese and in my experience we are actually the most liberal as regards free enterprise and lifestyle.

Well, Gordon Gekko summed up the reason we have so many regulations pretty well, 'Greed is good.'
And, we have to keep the money from getting to the poor people, so that requires regulations to insure the money keeps going to the billionaires. (See the Gordon Gekko comment.)

 

[toddburme]

I think the American residential mortgage is pretty unique. Canada doesn't do 30 years fixed on a home that I know of unless it changed. Our commercial loans are pretty close to what Canada does for mortgages 3-5 years then you redo it.
Which is what I just got on my B&B in the states. 3 years fixed at 5.75.

 

[Generic]

I think the American residential mortgage is pretty unique. Canada doesn't do 30 years fixed on a home that I know of unless it changed. Our commercial loans are pretty close to what Canada does for mortgages 3-5 years then you redo it.
Which is what I just got on my B&B in the states. 3 years fixed at 5.75..

No such thing as 30 years fixed in Canada. Most mortgages are up to 5 years. Amortisation is a seperate issue. I just checked my bank and they do have a 18 year fixed rate mortgage (I'm very surprised). But the rate .... 8.85% when a 5 year is at 4.14%. And a 5 year variable rate is at 2.85% (I'm paying much lower than that, but I negotiate well and I have excellent credit history, the kind banks dream of.)
I checked ING and they are offering 3.19% for 1 year fixed, 2.25% for 5 year variable (I'm still paying less than that!) and 4.99% for 10 year fixed. So obviously my bank has left more room for negotiations.
When we bought the house we took a 3 year variable (open) with 40 year amortisation. When we renewed we took a 5 year variable (closed) and changed the amortisation to 20 years. Open means that you can pay off the mortgage at any time. Closed mean that you have to pay a penalty to pay off your mortgage (usually 3 months payments.) We also have what is called 20+20 which means we can increase our payments by up to 20% per year and we can make lump sums of up to 20% of the principal in any one year.

 

[Alibi Ike]

I think the American residential mortgage is pretty unique. Canada doesn't do 30 years fixed on a home that I know of unless it changed. Our commercial loans are pretty close to what Canada does for mortgages 3-5 years then you redo it.
Which is what I just got on my B&B in the states. 3 years fixed at 5.75..

No such thing as 30 years fixed in Canada. Most mortgages are up to 5 years. Amortisation is a seperate issue. I just checked my bank and they do have a 18 year fixed rate mortgage (I'm very surprised). But the rate .... 8.85% when a 5 year is at 4.14%. And a 5 year variable rate is at 2.85% (I'm paying much lower than that, but I negotiate well and I have excellent credit history, the kind banks dream of.)
I checked ING and they are offering 3.19% for 1 year fixed, 2.25% for 5 year variable (I'm still paying less than that!) and 4.99% for 10 year fixed. So obviously my bank has left more room for negotiations.
When we bought the house we took a 3 year variable (open) with 40 year amortisation. When we renewed we took a 5 year variable (closed) and changed the amortisation to 20 years. Open means that you can pay off the mortgage at any time. Closed mean that you have to pay a penalty to pay off your mortgage (usually 3 months payments.) We also have what is called 20+20 which means we can increase our payments by up to 20% per year and we can make lump sums of up to 20% of the principal in any one year.
.

That is similar to a biz loan here. Amortization over 20 years, renew at 5 years. Then it renews every year.

 

[Generic]

I think the American residential mortgage is pretty unique. Canada doesn't do 30 years fixed on a home that I know of unless it changed. Our commercial loans are pretty close to what Canada does for mortgages 3-5 years then you redo it.
Which is what I just got on my B&B in the states. 3 years fixed at 5.75..

No such thing as 30 years fixed in Canada. Most mortgages are up to 5 years. Amortisation is a seperate issue. I just checked my bank and they do have a 18 year fixed rate mortgage (I'm very surprised). But the rate .... 8.85% when a 5 year is at 4.14%. And a 5 year variable rate is at 2.85% (I'm paying much lower than that, but I negotiate well and I have excellent credit history, the kind banks dream of.)
I checked ING and they are offering 3.19% for 1 year fixed, 2.25% for 5 year variable (I'm still paying less than that!) and 4.99% for 10 year fixed. So obviously my bank has left more room for negotiations.
When we bought the house we took a 3 year variable (open) with 40 year amortisation. When we renewed we took a 5 year variable (closed) and changed the amortisation to 20 years. Open means that you can pay off the mortgage at any time. Closed mean that you have to pay a penalty to pay off your mortgage (usually 3 months payments.) We also have what is called 20+20 which means we can increase our payments by up to 20% per year and we can make lump sums of up to 20% of the principal in any one year.
.

That is similar to a biz loan here. Amortization over 20 years, renew at 5 years. Then it renews every year.
.

You can pick the amortisation here, from 35 years and down. Standard in Canada is usually 25 years, accelerated is 15. But with the price of houses around here, more people are going to 35 years.
Your bank calls you a few months before renewal trying to get you to sign and offering you a number of different deals. You can call other banks, they all want to take it over, so they compete to get you and offer to pay notary fees. It's extremely competitive at the moment.

 

[Alibi Ike]

I think the American residential mortgage is pretty unique. Canada doesn't do 30 years fixed on a home that I know of unless it changed. Our commercial loans are pretty close to what Canada does for mortgages 3-5 years then you redo it.
Which is what I just got on my B&B in the states. 3 years fixed at 5.75..

No such thing as 30 years fixed in Canada. Most mortgages are up to 5 years. Amortisation is a seperate issue. I just checked my bank and they do have a 18 year fixed rate mortgage (I'm very surprised). But the rate .... 8.85% when a 5 year is at 4.14%. And a 5 year variable rate is at 2.85% (I'm paying much lower than that, but I negotiate well and I have excellent credit history, the kind banks dream of.)
I checked ING and they are offering 3.19% for 1 year fixed, 2.25% for 5 year variable (I'm still paying less than that!) and 4.99% for 10 year fixed. So obviously my bank has left more room for negotiations.
When we bought the house we took a 3 year variable (open) with 40 year amortisation. When we renewed we took a 5 year variable (closed) and changed the amortisation to 20 years. Open means that you can pay off the mortgage at any time. Closed mean that you have to pay a penalty to pay off your mortgage (usually 3 months payments.) We also have what is called 20+20 which means we can increase our payments by up to 20% per year and we can make lump sums of up to 20% of the principal in any one year.
.

That is similar to a biz loan here. Amortization over 20 years, renew at 5 years. Then it renews every year.
.

You can pick the amortisation here, from 35 years and down. Standard in Canada is usually 25 years, accelerated is 15. But with the price of houses around here, more people are going to 35 years.
Your bank calls you a few months before renewal trying to get you to sign and offering you a number of different deals. You can call other banks, they all want to take it over, so they compete to get you and offer to pay notary fees. It's extremely competitive at the moment.
.

Very few banks want the commercial loans here so there is no competition. And a home loan would cost me double what I'm paying commercial so I'll stick with this.

 

[JBloggs]

I am confused, why would it matter and why would you even tell them? It is the house/land you are paying monthly, so you keep on paying it... So IF YOU ALREADY HAVE THE MORTGAGE then you are good to go, it is the whole zoning and permitting process I would focus on!
And btw some people can run a B&B and close it. The mortgage is the mortgage nothing has changed there.
All the best!