Real estate we can help finance:
• Short Term and Long-Term Solutions
• Fully Open Mortgages,
• No Appraisals
• Recreational Homes
• Mixed Use
• Anything else you can put on a piece of land, or the land itself
We have answers
Rates range from 0% – 15% and beyond. Where you fit will depend on your file. We don’t need to take an application to quote a rate.
But we do need a conversation.
Let’s break it down, there are “Best Rate Lenders” and “Sub Prime Lenders” and “Private Lenders” that is it.
Other variables include “Purchase Owner-Occupied”, “Purchase Investment” “Refinance Owner-Occupied” “Refinance Investment”.
While differences can be small, it’s all in the details.
If you are a “Best Rate Lender” client, you really don’t need to worry about rates as you qualify for best rates. The differences between rate with “Best Rate Lenders” are usually only 0.05% – 0.25%. That could be $20 monthly or $1,200 over a 5-year term for every $100,000 borrowed. How we compare the finer details of a mortgage product is where your savings can truly matter the most.
If you are a “Sub Prime Lender” client, you likely won’t qualify, or may have been declined by “Best Rate Lenders”.
Sub Prime Lender rates vary far more than “Best Rate Lenders” so it important to have a knowledgeable broker/agent for this one.
“Private Rate Lenders” are a means to an end. They are strategic and can be used very effectively to ensure success. Sometimes they are used for a quick fix. By quick, we mean 1 – 12 months. Any longer and there’s a good chance there wasn’t a strong Exit Strategy built on day one. An Exit strategy is a carefully considered plan to navigate the sometimes difficult path out of Private financing. We can help with that.
We won’t keep it a secret, it’s simple – we take you through the 1/2/3’s and the A/B/C’s.
It starts with a 30 minute scheduled conversation aka the “Discovery Meeting“.
From here, we decide together our “next steps”.
Which may or may not include an application.
We aren’t asking for an application if we don’t think We Can Help.
More is More. As it relates to the A,B,C’s. This is because the more paper you have the better the rate. Less documentation usually comes at a greater cost.
Frustrated is an understatement sometimes.
We can help with that.
Haven’t done your taxes in a year or two or more and your broker/banker/trustee are asking? We can help with that.
Can’t figure out how to send the documents? We understand.
1,2,3’s and the A,B,C’s
Before you make a decision with your home or dream of home ownership, understand that if you don’t qualify today, we will work with you in creating a specific plan for you and you only. We can help you qualify as soon as possible.
We will build a “Savings Program” for your Down Payment.
We will build a “Credit Rehabilitation Program” to get your score up ASAP.
We will build an “Income Program” in order to qualify with our Financing Partners.
There are three ingredients that go into every mortgage no matter the lender/broker:
1) Downpayment or Equity: if you are purchasing you need minimum 5% down in Canada. If you don’t have a minimum of 5% down there is no need to go on to step 2 or 3. If you are refinancing (already own a home) the minimum equity position for institional lenders is 20% as they are only allowed to lend up to 80% of the value of the security aka real estate/your home. “Private Rate Lenders” may offer greater than 80% of the value of a security when deciding to lend to you.
2) Credit: What’s your score? “They” aka “Best Rate Lenders” tell you minimum 620 credit score but its more like 680 plus. Credit will dictate the cost of a mortgage.
3) Ratio’s/Income: “Best Rate Lenders” base the ratios on your Taxable Income, and “Sub Prime Lenders” can consider Bank Deposits for your income. Regardless of the Lender, they all want to make sure you can make your payments.
They do that by calculating what they call your GDS and TDS or Gross Debt Service and Total Debt Service Ratio. We can calculate your GDS/TDS without an application, call us to find out how.
After going through the 1,2,3’s we can better advise on the A,B,C’s:
(A) Best Rate Lenders: These are your banks or credit unions. They don’t charge you a fee. Approved at one, approved at all.
Declined by one, declined by all. There aren’t really any secrets here. They based their lending on taxable income and strong credit. Low Risk.
(B) Sub Prime Lenders: You don’t have to have bad credit or credit that doesn’t qualify with the “Best Rate Lenders”. They pick up where the “Best Rate Lenders” leave off. Income qualification guidelines are different with Sub Prime Lenders. They will lend to you based on your bank deposits. They will lend to you if you have bad credit as well. This type of lender could be a long-term or short term goal.
Your file depends on that.
(C) Private Rate Lenders: If your about to get into one of these products you better start with a plan to get out ASAP.
That is because they are expensive. When arranging a Private Rate Lender mortgage, it is a means to an end.
We are aiming to accomplish a goal. Disclosure is essential to success. That is because anyone can be a private lender. Protect yourself first.
Deal of the Month
Separation: Spouse buying out spouse to retain matrimonial home
(1) Equity – Enough
(2) Credit – Weak
(3) Ratio’s – Strong
This couple had a first mortgage with a line of credit totalling almost $500,000 in debt. Upon separation, one spouse wanted to buy out the other spouse from their shared home and settle some additional debt between them.
Based on the buyers credit and finances, we were not convinced that the spouse could borrow the money through a “Best Rate Lender” right away to cover this buyout and alternative lenders needed to be considered. The goal was to get the buyout spouse into a position to qualify for a “Best Rate Lender” 1st mortgage the shortest amount of time possible.
We recommended and arranged a small “Private Rate Lender” mortgage behind the $500,000 short term. This was enough to clear up the credit bureau and pay for a lawyer to create Separation Agreement in order to protect all. Based on our calculations, we determined it was more cost effective long-term to arrange a small “Private Rate Lender” 2nd mortgage for three months (at a higher rate), instead of locking the buyout spouse into a minimum one year term mortgage with a “Sub Prime Lender” with also higher interest rates than a “Best Rate Lender” offers.
After three months, we were then able to transfer the debt from the private lender and arrange a new 1st mortgage with a “Best Rate Lender” as the previous outstanding debt on his credit was minimized considerably. Our math calculations were correct, and it worked! By doing it this way, we were able to save the buyout spouse approx. $10,000 in interest and fees that they would have paid over the course of a year with sub-prime lender 2nd mortgage. The spouse also then qualified for the best 1st mortgage interest rates out there within just three months.