I am having trouble with the CMHC fees not being correctly accounted for in the Financial Analysis & Proforma.
[list type=decimal][*]When I choose to have these fees added to the mortgage, it subtracts the Revised mortgage principle from the purchase amount, giving me a <negative> downpayment instead of the actual 5% or 10%. This in turn affects the closing costs and ROI calculation.As well the ROI calculation takes the mortgage paydown figure alone as profit instead of the actual remaining principle on the mortgage. On the property I am analyzing, REMA shows profit from mtg paydown of $11,000.+- in 5 years while in reality it takes until year 5 or 6 for the paydown to pay off the premium itself before it becomes a profit center (based on 5% down)[/list type=decimal]
[list type=decimal][*]When I choose to have these fees added to the mortgage, it subtracts the Revised mortgage principle from the purchase amount, giving me a <negative> downpayment instead of the actual 5% or 10%. This in turn affects the closing costs and ROI calculation.As well the ROI calculation takes the mortgage paydown figure alone as profit instead of the actual remaining principle on the mortgage. On the property I am analyzing, REMA shows profit from mtg paydown of $11,000.+- in 5 years while in reality it takes until year 5 or 6 for the paydown to pay off the premium itself before it becomes a profit center (based on 5% down)[/list type=decimal]
