Perp,
Financing is extremely tight, as you are now experiencing. We personally have a mortgage come up for renewal last week.The lender no longer offers mortgages in Canada, so we are forced to use another lender. NO ONE will refinance our property (atm) even though it is 50% LVR. However the mortgage brokers are very quickly to offer their "private mortgages" of 14% of the mortgage up front + 12% interest. The idea is to be able to secure financing the conventional way in 12 months...or refinace again with the 14% +12%. Very soon they own your property..... Still searching for a lender.
My son applied for his first mortgage. I was going to finance it thru my Registered Retirement Saving Plan (equivalent to your Super Annuation) He was only required to qualify for mortgage insurance. He was refused, not because of bad credit, but because of no credit. He doesn't have any debt or credit cards. When he was denied, our bank appealed, and said he should be approved..but he was denied again. We are trying another lender, who doesn't require the use of this particular mortgage insurer, to see if that will help. My son can prove he has genuine 10% downpayment, and a power bill he has never been late paying for 3 years. Not acceptable, unless he is a new immigrant. Citizens aren't awarded this consideration.
Other son wanted to borrow $15K for a mobile home, and use this property as a collateral. No longer permitted.
Today we put in an offer for this property using installment payments. We will find out tomorrow the result.
We, as Canadians, are being penalized for what is happening in the USA market, even though we had nothing to do with it. Their mortgage rules are nothing like ours.They can simply hand back the keys and walk away, while with us, they can continue to chase you for any shortfall owing.
Perp, I would suggest you not put any money into a lease option.It is stacked in their favor, unless you think you can buy with other funds at a later date.
We offer Lease Options on properties, but I would never go that route.