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Your Questions Answered by a Canmore Mortgage Advisor!

Rupal Gandhi - CIBC Canmore mortgage advisor

When new clients reach out to me, one of the first professionals I recommend they get in touch with is a great Canmore mortgage advisor. Whether its your first home, retirement residence or investment property, financing often plays a big part in real estate purchases for most Canadians.

That’s why I decided to sit down with one of the main Canmore and Calgary mortgage advisors my clients choose to work with: Rupal Gandhi, Mobile Mortgage Advisor with CIBC.

This was definitely a fascinating conversation, and one that answers so many questions I have clients asking me daily. Connecting my clients with the right professionals to ensure a successful real estate transaction is a key part of the value I bring as a Canmore & Cochrane Realtor.

With CIBC being the top lender in the Nightly Rental space (a large part of the Canmore market), I thought it would be best to go to the source for some direct knowledge.

As always, please feel free to reach out to me directly if you have any questions about financing a home or investment property, what the market landscape looks like in our area, or anything else!

My Discussion with Rupal Gandhi, CIBC Mortgage Advisor for Canmore, Cochrane & Calgary

Dan: Thanks for sitting down today Rupal. Tell us a bit about yourself and your business!

Rupal: I’m passionate about helping people achieve their home-ownership goals, no matter what they may be. Whether you want to buy your first home, access your home equity or move your mortgage over to CIBC, I can empower you to make smart mortgage and home-financing decisions. I also specialize in the new home market and can help if you’re looking to buy a new home or condo or need construction financing to build your own home. From start to finish, I’ll be there to help you through the mortgage process.

How Much Down payment do buyers need in Alberta?

For a Primary Residence, you need minimum of 5% on the first $500,000 of your purchase price, and 10% on the remaining purchase price over $500,000.

For Rental/Investment/Vacation property purchase, minimum 20% down payment is required and you may need more to meet Debt Servicing Ratio Guideline. Current Total Debt Servicing Ratio – TDSR (including all your monthly liabilities), is at 44%. Gross Debt Servicing Ratio – GDSR (only property related expenses like Mortgage payment, property tax, utilities and Condo fees if any) is currently at 39%.

What are the Canmore AirB&B Mortgage Rules?

Any Investment/Rental property which is under Resort/Visitor Accommodation Zoning cannot be rented for long term lease and therefore, no rental income will be used to offset the cost. In this case a Client has to qualify on their own income along with their liabilities. If a Client already has a short term rental property and would like to purchase another one, they will need strong income, less liabilities and may be strong co-borrower.

Canmore Tourist Home properties may be easier to finance, as they could also be rented full time. This means the bank could use potential long-term lease rental income to offset costs.

Why is CIBC poised to help buyers best in Canmore?

CIBC is one of the top 5 regulated Banks in Canada. We strongly believe in the demand of short-term rental in Canmore, as it is one of the most popular vacation destinations in the Rockies.

When clients are eligible to purchase a property in Canmore without any rental income from the subject property, usually affordability is not an issue due to higher AirB&B revenue. CIBC also believes in the strong real estate growth in Canmore to grow our lending bucket.

Are Mortgage rates higher in Canmore? Lower?

Mortgage rates for purchasing in Canmore are no different than buying in any other part of Canada.

What is your outlook on where interest rates are going in the near term and long term?

The Bank of Canada started increasing their over night lending rate from late last year to control inflation, and strong real estate demand. But due to less supply and higher demand, the real estate market is still seeing a boom. In my opinion, rates are still going to stay high if not increase for 2023. We may see rates will come down from early 2024, but this will depend on the demand of housing from new Immigrants.

What do you do that makes your service so special for your clients?

Working with the banking industry for over 10+ years, my experience gives me a better understanding of the client’s current situation, their future plans and goals with investment in real estate. I always disclose all the information my clients should know while dealing with me for their mortgage needs.

I set clear expectations with my clients so there are no surprises. It’s so important to keep them updated with every step of the application, and I am always available to answer their questions, explain the process, and let them know what to expect. Giving them a heads up if I am sending documents for signatures. I try my best to work with their schedule which gives my clients great flexibility.

CIBC gives me the ability to handle the entire mortgage application through online channels, so clients don’t need to drive to meet me in person. I receive client information via CIBCs Secure System, so clients need not worry about their privacy or security of their information. Most of my business is a referral from my previous clients, which testify to my service.

What is the biggest issue you run into with mortgage applicants?

I always appreciate it if a client fully discloses their financial assets and liabilities so we can work on their true affordability. Sometimes, we find new liabilities after we finalize their mortgage application, which can create a risk for their approval. Clients should also provide all documents in proper requested format to avoid any delays in their application.

What can People do to ensure they get the mortgage they need quickly?

As soon as clients decide to purchase home, they should talk to a mortgage advisor to make sure they know their affordability. I talk to clients to collect their documents, and run my calculations to give them an estimate of a purchase price.

We can submit pre-approval for primary homes to an underwriter, but when client is buying a rental or investment property, pre-approval cannot be submitted. So it gives them a decent idea about what to look for when they talk to their Realtor.

I always start a mortgage application right away, as soon as I receive all necessary documents and lock their interest rate for 120 days so they can be protected from any rate increases.

Your Questions Answered by a Canmore Mortgage Advisor!

Wow! Lots of information to digest. With a property often being one of the most expensive things you’ll ever buy, so much goes into the process.

Feeling secure in the information your lender is giving you is very important to me when representing you as a Buyer. Because no matter how perfect the home may be for you – I won’t be able to lend you the money on the close date!

Mortgage lenders are just one part of the vast network of professionals I bring to the table for my clients. From inspectors to property managers, to electricians and plumbers (plus I even have a guy who can cut up a broken hot tub and take it away!).

If you’re looking for the right team of professionals to ensure a smooth property purchase in Canmore, Cochrane and the surrounding area – please feel free to reach out to me to get your search started.