BEST MORTGAGE SOLUTIONS FOR YOU
With every unique homeowner comes a set of specific mortgage needs. That’s why the right mortgage lender can make a huge difference. It’s not a ‘one size fits all’ situation. If you add the right mortgage lender to the mix, you’re putting yourself in the best position for sustained success.
Below are some examples of situations my clients have encountered in the past, and the solutions used to navigate through the situation. Regardless of your circumstances, you can rest assured that I will use the fullest extent of my knowledge and creativity to put you on the best path.
If you or someone you know are pursuing a mortgage but might be anxious about financing – Breathe easy! With over 30 lenders out there competing for prospective homeowners, there is almost always a solution, and I look forward to discussing these options further with you.
MORTGAGE CHALLENGE #1
“I found the perfect home, but it needs renovations and I don’t have any additional funds beyond my down payment and closing costs. What are my options?”
This situation is more common than you think. First-time buyers and repeat buyers will often find the perfect home in the ideal neighborhood but are under the assumption that they can’t afford renovations because their cash resources went towards the down payment and closing costs. Whether you’re looking to renovate or add a room, or install a new roof, you can do so thanks to the Purchase Plus Improvements Plan.
Adding up to $40,000 to your mortgage for home improvements through the Purchase Plus Improvements Plan. 95% of home buyers will make changes to their homes once they take possession, and most aren’t aware of this unique option.
By taking advantage of this plan, you’ll have a mortgage that covers the purchase of the home and the cost of immediate, major renovations.
- Your ideal home can be renovated/updated without stress.
- You don’t have to worry about secondary financing. Your sole focus is one mortgage with one payment and one mortgage interest rate.
MORTGAGE CHALLENGE #2
“Should I choose a Variable Rate Mortgage or Fixed Rate Mortgage?”
Chris is trying to decide between a Variable Rate Mortgage or a Fixed Rate Mortgage. Historically, a Variable Rate Mortgage has proven to be the preferred method in recent years, but with so much uncertainty about the longer-term status of the Prime Rate, the security of knowing the precise payments each month is worth considering.
Today’s mortgage lenders have created a product that allows for both a Variable and a Fixed Rate Mortgage in one product. If this appeals to you, together we can decide how we want to split the percentages. Some choose 50/50 while others go 60/40 or 70/30. It’s your call.
There is also a “Line of Credit” option that can be used for investing or future resources if needed.
- Chris feels more at ease with his decision knowing that if the Prime Rate increases, his payments will stay manageable and within budget.
- He knows that I will keep him posted on a weekly basis with any noteworthy changes to the Prime Rate, and if we need to lock into a Fixed Rate Mortgage on short notice, we have that capability without the fear of exuberant costs.
MORTGAGE CHALLENGE #3
“My spouse and I are looking to refinance our mortgage. Unfortunately, my credit has been damaged, but my spouse has excellent credit. What are my options? Can we still qualify?”
Patrick and Emily have been married for over 5 years, and unfortunately, Patrick’s business has gone bankrupt because of a shift in the economy. His credit has been damaged to the point where mortgage lenders are weary to offer him a mortgage, and the few lenders that are considering his application are offering rates that are unmanageable.
Emily, however, has excellent credit and stable employment. Their current home has a basement suite that is being rented for $850/month. Together, Patrick and Emily have some unsecured debt that they are hoping to consolidate into their mortgage.
Some mortgage lenders that both names of a marital partnership be listed on the mortgage and the title, which can make refinancing difficult, but luckily there is a solution.
We find a lender who does NOT require Patrick and Emily to be listed on the mortgage and the title. Assuming Emily provides ‘spousal consent,’ Patrick can take his name off the mortgage and the title of their home.
Because of her steady employment, solid credit and the bonus funds from their rental suite, Emily can now qualify for the new mortgage on her own. Meanwhile, they can prioritize the repayment of their debts, and acquire a secured credit card for Patrick to re-establish his credit.
- Patrick and Emily can now refinance their mortgage without being charged exorbitant rates and fees due to Patrick’s credit situation.
- Their unsecured debt is paid off quicker at a much lower rate of interest.
- Patrick’s quest to rebuild his credit begins faster and safer.
MORTGAGE CHALLENGE #4
“I’m currently self-employed in a new business. I have one mortgage, but I also have some notable debt. Is a second mortgage my best option to help level things out?”
Jeff has been self-employed for the past two years and has struggled to maintain a steady income. As such, he’s accumulated some high-interest credit card debt from starting his business and has struggled to meet his monthly payment requirements. Due to late payments, and his inconsistent income, his credit score is ‘587’ which below the minimum score required to qualify for a self-employed mortgage product. The major reason why: Inconsistent income.
I find Jeff a suitable second mortgage which then allows him to pay off his credit card debt, lower his interest rate, and lower his overall mortgage payment.
- Jeff has a better grasp of his monthly payment obligations.
- He’s paying a lower interest rate.
- Most importantly, he’s paid off the entirety of his credit card debt, improving his credit score. Putting himself in a position where he’ll soon be able to pay off his second mortgage more effectively.
MORTGAGE CHALLENGE #5
“We are interested in purchasing a vacation home in a rural, remote area of B.C. What are our options?”
Mark and Holly are looking to purchase a secluded cabin in the interior. But since the property is only accessible for half of the year, some lenders are weary of approving their application. One lender, a local credit union is willing to lend on the property, but their charging a premium on an already high rate. Unfortunately, most lenders will not finance properties in rural areas, especially ones that aren’t accessible year-round.
I reviewed their financial situation and learned that Mark and Holly also owned a rental property in Alberta which they inherited from Mark’s father’s estate. It was a clear title property, so we arranged a mortgage for 80% of the value of the Alberta house. The proceeds from the sale allowed them to purchase their vacation home with cash.
Mark and Holly successfully bought their vacation home without paying a fortune in interest to finance it. Additionally, because they refinanced their rental property in Alberta, they received a tax deduction on the interest costs of the property.
MORTGAGE CHALLENGE #6
“We would like to refinance our rental property, but we are also hoping to sell it soon. What are our options?”
Lilly and Steve recently renovated their rental property with the hopes that they could sell it for a profit. Unfortunately, the market softened and they were unable to recoup their renovation costs. Instead they decided to rent out the property and ride it out longer. While they waited, they decided to refinance the property with the hope of paying off the renovation costs. Their hope was that the mortgage was a “Home Equity Line of Credit” so that they wouldn’t be penalized when they eventually sold the house.
The issue was that Lilly owned her business, but was showing minimal income on her tax returns because of all of her write off several of her larger expenses. Based on her current income, most mortgage lenders would not offer them appropriate financing. Lenders often will not allow clients who are self-employed to finance a rental property using a line of credit.
Using a strong relationship that I have with one of our lending partners, I was able to convince them to accept Lilly’s application, stressing the fact that there was sufficient rental income coming in to show that they could afford the mortgage. By reviewing their business financials, the lender discovered that her income was far higher than her tax returns suggested. The lender was assured that the rental income would be used to cover the clients mortgage obligation.
From there, we were able to get Lilly and Steve into a Variable Rate Mortgage in order to reduce the penalty amount. When they did finally sell, they did pay a penalty, but because they were on a Variable Rate, they only had to pay three-months of interest.
Lilly and Steve were able to refinance their rental property with a mortgage that minimized the penalty that they ultimately had to pay. They were also able to get financing despite a reported low income. And as a bonus, they still got to write off the interest paid on their new mortgage!