Specific Question About Current Condo Unit/Mortgage Application Process
So for anyone with any knowledge in the real estate industry period I was wondering if someone could help with some advice or perhaps just more knowledge on the subject matter that could help me out in understanding my current situation.
I'm a first-time home buyer and made a conditional offer that was accepted Friday before last on a condo unit at Vetro in Calgary. The "Condition Day" (when the conditions had to be waived) was for this Friday at 9PM.
This past week was to secure a mortgage, review condo documents and things of that nature. I had the condo documents reviewed professionally and for the most part from what I was able to ascertain things looked in good order and the condo seems like a good condo to buy into.
The mortgage part is where the real situation arose I have 15% down payment ready for the condo and I had a few rates held for me at the pre-approval stage at 3 banks: First Calgary, ICICI and BMO.
First Calgary went through the application process and at the very end when everything on my end (financially and credit wise was okayed) I was told that CMHC nixed my application because Vetro is an 18+ only building and CMHC will not support that (after looking into that a bit online that did seem to add up). ICICI had the ability to go thru Genworth and/or Canada Guaranty for insurers so I tried to go thru them, however Genworth said no because they did not like the current landscape in the condo building in terms of how many commercial owners to renters to regular owners (like myself would be) there are, and when asking Canada Guaranty they basically said they would not insure if Genworth was saying no as well.
Now the above upset me and really confused me as to understanding how anyone at Vetro could possibly have a mortgage without having put at least 20% down payment to avoid insurers all together.
When I asked a mortgage broker to look into the situation, she herself said that the few lenders she was asking thru on my behalf were hesitant to approve a mortgage because of the fact that insurers were saying no to Vetro.
Finally I came upon BMO that basically said they would approve it, if I could get 20% down payment to avoid insurers all together. To get to 20% however they need to get the property appraised, which is what they're doing over the weekend since I was able to get my "Condition Day" extended to this Tuesday.
Here's where I am at now...I'm wondering how unique/odd my situation really is, since I've known a few people who have bought into Vetro and have nothing but great things to say about it especially since seeing how it is so new (2008)? How hard will it be to resell down the road if there is this much fuss about it now?
Finally to make the extra 5% down payment the only way I could think of coming up with it (without being gifted it, which I won't) was to take out a personal LOC (line of credit) thru BMO...I'm wondering is there anyway else to make it up that I may be missing that may be a better option since it requires a 2% payment/month (~$300-$400 extra on top of my mortgage) and runs at a 9.25% interest rate?
Any help regarding my issue would be much appreciated, thanks.
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