Component A ($434K, variable, matures Oct 5, 2026): no penalty if you renew into an open term at maturity and close after. The open rate is higher, but for 2–3 months that's noise versus a penalty. If somehow you close before Oct 5: ~3 months' interest ≈ $3,584.
Component B ($310K, 3.99% fixed to Jul 2029): penalty is unavoidable — greater of 3 months' interest (≈$3,089) or the interest-rate differential, realistically $3K–8K depending on RBC's posted rates. Use RBC's online prepayment calculator for the exact figure, and consider the 10% annual prepayment privilege (~$35K penalty-free) right before closing to shrink the penalized balance.
Everything else: credit line is at $0 — nothing owed. One discharge/admin fee (~$400) on the Homeline collateral charge. Selling the Direct Investing positions costs only trade commissions; transfer-out fees apply only if you move accounts to another institution instead of liquidating.
Good: 1% on the listing side is genuinely sharp (typical GTA is 2.5% + 2.5%), the Sept 10 go-live catches the fall market, and the marketing package is complete. His range matches the earlier estimate.
Watch: the "2%" only happens if he double-ends the deal — plan your numbers at 3.5% + HST (~3.96% all-in) and treat 2% as upside. If he does bring the buyer, understand the TRESA representation rules: one agent on both sides changes who's negotiating for you. Ask him three things before Aug 22: staging (photography is listed, staging isn't), offer strategy (offer date vs. offers-anytime at this price point), and whether the fixed showing windows loosen in the first two weeks — early flexibility is when demand is decided.
Philippine earnest money is legally part of the purchase price of a perfected sale — hard to recover if Toronto slips. Keep the reservation small, put every major payment milestone after the Toronto sale goes firm, and target a Jan–Feb PH closing. A listing that's been up since January will usually trade time for certainty.
Financing reality: a ₱17–23M loan on foreign-source income with no PH ITRs yet gets real scrutiny. Pre-qualify with 2–3 banks now (BDO, BPI, Metrobank/Security Bank), Joannah as principal borrower, your income documented behind her — employment certificate, payslips, NOAs, 6–12 months of statements. Low LTV is your leverage.
Diligence for any house on the shortlist: certified true copy of title at the Registry of Deeds, tax declaration + RPT clearance, HOA clearance, approved permits and as-built floor area, structural/roof/waterproofing inspection, flood-map check for the barangay, and an honest answer on days-on-market and the reason for selling.
Income structure: your TRAIN calculator is the employee route (~26% effective). The contractor route with the 40% Optional Standard Deduction and VAT zero-rating on services to a foreign company nets roughly ₱50K+ more per month at this salary — and its quarterly ITRs become your loan documentation. Needs BIR self-employed + VAT registration and a bookkeeper. Worth confirming with the Makati accountant before payroll flips.
Valid and narrow: two Special Powers of Attorney — Joannah's as buyer/titleholder, yours for spousal consent — signed at the PH Consulate in Toronto (or Ontario-notarized + apostilled). Scope to the specific title number, a price ceiling, and named acts only: sign deed/contract to sell, pay BIR taxes and fees, process transfer, receive the title. No power to borrow, encumber, resell, or substitute. Execute close to use (SPAs go stale after ~6–12 months) and revoke in writing after closing.
The money never touches the in-law's account. Wise/OFX → Joannah's own PH account → manager's check to the seller; the attorney-in-fact hands over an instrument, not cash. An independent lawyer (not the seller's broker) runs the title trace and drafts the deed + SPA. Deadline sheet for the in-law: CGT within 30 days of sale, DST early the following month — late means 25% surcharge plus interest.
Cash via SPA is smooth; a mortgage often isn't. Banks may reject SPA-signed loan documents or require an appearance / video KYC — ask the bank before structuring anything. Strongest play: SPA covers process (reservation, contract to sell, paperwork, turnover); the deed and loan signatures wait for one planned trip.
It can work, but check two traps before anyone signs: PH banks cap age at loan maturity (roughly 65–75), and some size the term to the oldest borrower — an older co-borrower can shorten your 20-year term instead of helping. Mortgage Redemption Insurance also prices on every borrower; past ~60–65 it gets expensive or declined, which complicates approval rather than smoothing it.
Their preferred-client status is worth more than their signature. The real gap is income documentation (foreign-source salary, no PH ITRs yet) — not debt capacity — and that's solved by a relationship-manager introduction at their primary bank, where credit committees have discretion. Sequence: RM intro presenting a family relationship deal at 40–50% LTV → if documentation still stalls, a limited surety/guarantee (capped, not full co-borrowership) → full co-borrower only as last resort. A guaranteed loan at this LTV should also price at the very bottom of the market — push for it.
Keep the edges clean: a co-signature is solidary liability sitting on their balance sheet and credit record for the life of the loan. Title and debt stay in Joannah's name; the parents open doors, not exposure.