Thinking Outside the Bank Guidelines

Banks have been squeezed by the new government regulations and might not be able to provide you with the mortgage solutions you need. Here are some of the things we can do with non-bank lenders: Rentals Most lenders require 25% down-payment in order for you to avoid paying mortgage insurance premium. We can get it … Read more…

How Banks Gouge You On The Mortgage Penalty?

How Banks Gouge You On The Mortgage Penalty?

We keep seeing more and more articles in the news about outrageous mortgage penalties banks charge their clients. So what’s the deal? Well banks are in business to make BIG money, their fixed rates have standard penalties as all other lenders do, greater of 3 months interest or interest rate differential. The 3 months interest … Read more…

What is a Credit Score? How it works? How to repair it?

What is a Credit Score? How it works? How to repair it?

How does the Credit/Beacon Score number work? This three digit number is a statistical formula that takes your personal credit information from your credit report Scores range from 300 – 900 The ‘Beacon Score’ is branded by Equifax FICO – Fair, Isaac & Co (created to assess profitability) Everything counts: age, address, phone number, dependents, length … Read more…

Mortgage Case Study – High Ratio Self-Employed (Verified Income)

Scenario: Purchasing a townhome with 5% down-payment Mortgage Required: $500,000 1st Mortgage Obstacles: The borrower has been self-employed for 4 years and incorporated 2 years ago. Client is paying himself dividends from his company.     What we did: Approved the client based on dividend income declared on his NOAs With verified income we were … Read more…

Mortgage Case Study – Bridge Financing

Scenario: A purchase of a Single Family Dwelling in Richmond, BC to be the new principal residence. The existing residence located in Surrey is still listed for sale. The borrowers require bridge funds for a short period of time to close on the purchase. Once their existing home sells, they will pay out the 2nd … Read more…

Case Study – Approving a self-employed client with less than 2 years in business

Scenario: Clients were purchasing a primary residence with one applicant being newly self-employed (only 1 year of financials available). Mortgage Required: $600,000 Obstacles: Husband is newly self-employed with 1 year of tax returns to confirm income (Banks require minimum 2 years for qualification) and we needed his income to qualify the deal. What we accomplished: … Read more…

Buying Rental vs Second Home, What’s the Difference?

CMHC is eliminating their second home program at the end of the months… so what is the fuss all about? You have decided to purchase a second property, now the question is how to finance it? At a first glance it would seem buying the second property as a rental is a no brainer! Rent … Read more…

CMHC is slowly exiting the insurance market…

    CMHC is slowly exiting the insurance market… with Canadian mortgage rates remaining at all-time lows and no visible slow down for the real estate market, CMHC is reducing its risk exposure to the mortgage market. CMHC announced on Friday that it will be eliminating 2 of it’s programs for insured mortgages: The self-employed … Read more…