Financing Condos Under 500sqft

14.05.2015

Mortgages for Small Condos

I’ve had a lot of Buyers recently – both looking for themselves and looking as an investment – inquire about units that are under 500sqft. There are a number of those units in Vancouver, everywhere from Mount Pleasant to Collingwood, in old buildings and brand new buildings. Naturally, these units are less expensive than their bigger counterparts which puts them in the affordability range for a lot of Buyers. I’ve seen a lot of great units that have been under 500sqft (the floor plan must all the difference in these scenarios) and often if rentals are allowed, they can be great rental properties thanks to the low mortgage payments and good monthly income.

However – the banks and other mortgage lenders look at these properties as units that the Buyer wouldn’t live in for very long and thus make financing a little more difficult for prospective Buyers. There are a few things you need to know about units under 500sqft..

1. Units that are under 500sqft can be financed through the traditional mortgage route, but you may have fewer lenders to choose from. Fewer choices in lender may lead to less than ideal mortgage terms, but a savvy Mortgage Broker can do wonders.

2. Lenders may require that any unit under 500sqft have a proper bedroom, which means walls and a door to separate the space from the living room. The walls can be a sliding door, or a glass wall, there just has to be separation.

3. Some lenders might require a much higher down payment in order to finance these units, though not all.

4. Lower all around costs! Keep in mind that a smaller unit should have lower strata fees than larger units, lower monthly insurance rates, less furniture needed, etc.

5. There are some really creative furniture and design ideas out there to help use every inch of a smaller space. Spend some time designing the space to take into account storage and layout, and you’ll make the most of the space.

6. Outdoor space does not count towards this sqft, so the unit may have under 500sqft in interior space, yet a large patio or balcony to make up for it. Making the most of this space gives you more living space when needed. Check out this unit unit at 4372 Fraser St – only 480sqft but it has a great balcony space as well.

Let us know if you have any questions about buying a smaller unit – we’re happy to help find you a great option in East Vancouver!

[x] close

Login for Full MLS Access

Name*:

Password*:

Email*:

Phone:

Budget: -

Square ft.: -

# of Bedrooms:

# of Bathrooms:

Area:

Key criteria:

Terms of Use

The term Virtual Office Website ("VOW") refers to a Participant's (REALTORS®) Internet website, or a feature of a Participant's Internet website, through which the Participant provides real estate brokerage services to Registrants (clients and prospects) with whom the Participant has first established a relationship where the Registrant has the opportunity to search for MLS® data, subject to the Participant's oversight, supervision and accountability. By agreeing to these "Terms of Use" you:

  1. acknowledge and understand that the Terms of Use do not create an agency relationship and do not impose a financial obligation on the Registrant or create any representation agreement between the Registrant and the Participant;
  2. understand that all data obtained from the VOW is intended only for your personal, non-commercial use;
  3. do have a bona fide interest in the purchase, sale, or lease of real estate of the type being offered through the VOW
  4. agree not to copy, redistribute or retransmit any of the data or information provided;
  5. acknowledge the Board/Association ownership of and the validity of the copyright in the MLS® database.
  6. agree that all information provided may be provided to the relevant Board and may be used to administer and operate the VOW and to investigate any breach of security of the data or the MLS® rules
  7. that a "mouse click" is sufficient acknowledgement and agreement to the terms
  8. must supply a user name and a password, the combination of which must be different from those of all other Registrants on the VOW, before being permitted to search and view information from the MLS® database via the VOW.
  9. must provide a valid email address. The Registrant may be permitted to access the VOW only after the Participant has verified that the email address provided is valid the Registrant's agreement to the VOW's Terms of Use is confirmed.
  10. understand the Participant must at all times maintain a record of the name, telephone number and email address supplied by the Registrant, and the username and current password of each Registrant, such records to be kept for not less than 180 days after the expiration of the validity of the Registrant's password. If the Board/Association has reason to believe that a Participant's VOW has caused or permitted a breach in the security of the data or a violation of MLS® rules related to use by one or more Registrants, the Participant shall, upon request, provide to the Board/Association a copy of the record of the name, email address, telephone number, username, current password, and audit trail, if required, of any Registrant identified by the Board/Association to be suspected of involvement in the violation.
  11. Understand that information on this site is deemed to be valid but is not guaranteed. It is the responsibility of the registrants to confirm all information on their own. Broker may not have reviewed or approved listing enhancements. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
  12. Understand any agreement entered into at any time between the Participant and Registrant imposing a financial obligation on the Registrant or creating agency representation of the Registrant by the Participant must be established separately from the Terms of Use, must be prominently labelled and may not be accepted solely by mouse click
  13. have received, read and understand the brochure published by the British Columbia Real Estate Association entitled Working With a REALTOR®

Having agreed to the terms and conditions of use, I would like to have access to this VOW information.

 Terms and Conditions I agree to the Terms and Conditions

[x] close

Login for VOW Access

Remember me

Don't have an account? Register now!