Thursday, June 08, 2006

The Update - Finally

So we lost the cottage…. the problem was in the financing and the fact that we couldn’t secure it quickly enough. We simply weren’t willing to take on a second mortgage on the property so that we had the 25% minimum down payment in order to not have to deal with the CMHC.

I’m sure this is a bit confusing but the whole story goes like this, we made the offer and it got accepted (after some jumping through hoops). We went to the bank and tried to get a mortgage, they approved the mortgage with one condition… I needed a letter from work that said I’m not on probation (specifically the CMHC needed the letter). The probationary period is as far as I understand it applicable in close to 95% of employee-employer relationships regardless of what is or isn’t said. My employer wasn’t willing to take the risk and I appreciate that. They were willing to provide supplementary letters saying that although it’s a policy it’s very rarely enforced.

The bank still said no, but by this point I had been told by a co-worker about second mortgages… let me tell you the woman we were dealing with at the bank started backpedaling as fast as possible. Why you ask? Mostly because when asked what options we have if I couldn’t that letter she said there was none, but in reality there were options. Needless to say my GF and I are rather peeved with this woman and trying to decide if we want to complain. So by yesterday evening we had the potential option of getting a second mortgage costing us an additional 3,000$ or just let it fall through.

We chose to let it fall through and go on vacation with the money that was supposed to be our down payment (or at least part of it)