Case Study 7

Purpose

• Applicant wants to purchase home while away from work on maternity/paternity leave
• Recently seperated from spouse and currently renting apartment

Income and Debt Servicing

• Stable salaried positions earning $55,000
• Employment verified by employment letter, pay stub, and verbal confirmation by employer
• $1.5K in monthly child and alimony support
• $541 in monthly Canada Child Benefits
• GDS/TDS is 39/39% with a stressed TDS of 46% using the mortgage rate plus 200bps

Mortgage Details
LTV	80%
Property Value	$400,000

GDS/TDS Calculation Salaried Income (Maternity/Paternity Leave) 100% $55,000 Additional Income Sources Child and Alimony Support 100% $18,000 Canada Child Benefits 100%  $6,492  $79,492 GDS/TDS 39/39% Stressed TDS 46%

Credit

• 550 Beacon
• Payments and bills were missed during the difficult period leading up to the applicant's divorce
• Excellent mortgage repayment history on previous home

Property

• $400,000 property value
• Good condition, well maintained property in suburban area

Down Payment

• $20K down payment from client's own savings
• $60K from the seperation settlement 

Deal Rationale:

Client was offered a 1 year mortgage at 80% LTV. The client was able to purchase a new home to raise their child in. 

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Financial Peace Today

Protect Your Family Today.

Case Study 6

Purpose

• Couple trying to start fresh after past bankruptcy
• Refinance of home appraised at $400,000
• Equity take-out to pay off first and second mortgages, and consolidate debts on the credit bureau

Income

• Combined household income of $140K in stable salaried positions
• Income verified by employment letter, verbal confirmation by employers, and pay stub

Credit

• 550 Beacon
• History of bankruptcy due to one spouse's past marital breakdown - has since been discharged and working towards rebuilding credit
• GDS/TDS is 41/44% with stressed TDS of 49% using the mortgage rate plus 200bps

Property

• Well-maintained, detached home with finished basement
• Suburban area with average of 60-90 DOM

Deal Rationale:

Lender was able to offer a 1 year mortgage at 80% LTV to allow the client to pay off first and second mortgages and consolidate debts. With an additional monthly cash flow of $1,000, we have helped to place this couple on a path of sustainable credit repair.

To Learn More Contact
MoneyValue
E: edwin.m@moneyvalue.ca
T: 416 822 5886
Visit https://moneyvalue.ca

Case Study 5

Purpose

• Refinance home to consolidate 1st and 2nd mortgages and payoff $20,000 in debt

Income and Debt Servicing

• Stable salaried position earning $65,000
• Employment verified by employment letter, pay stub, and verbal confirmation by employer
• GDS/TDS is 39/39% with stressed TDS of 46% using the mortgage rate plus 200bps

Credit

• 520 beacon due to family member's illness
• Medical bills started to pile up and client's credit was bruised
• Excellent mortgage repayment history

Property

• $400,000 property value
• Good condition, well maintained property
• Suburban area with DOM under 30

Deal Rationale:

Was offered a 1 year mortgage at 75% LTV. The client was able to consolidate $20,000 in debt and improve their cashflow by $750 monthly.

Contact Us to Learn More
MoneyValue
E: edwin.m@moneyvalue.ca 
Please Visit: https://moneyvalue.ca

Manulife Travel Insurance - Affordable Protection

Part 1: Insurance for Traveling Canadians

If you are headed out of the province or the country, Manulife Travel Insurance for Travelling Canadians is the best plan for your financial protection.

What is it?

It offers emergency travel medical coverage up to $5,000,000, for Canadians traveling out of their home province.

What’s covered?

• Up to $5 million in emergency medical coverage
• Coverage for paramedical services
• Ambulance transportation
• Emergency dental
• Expenses related to death
• Emergency medical return home
• Visit to bedside if travelling alone
• Return of children in the care of the insured
• Additional expenses for meals and hotel
• Return home of vehicle
• Trip break without terminating coverage

Part 2: Insurance for Visitors to Canada

Do you have clients heading to Canada for a visit? Or maybe you are expecting friends or relatives to visit from overseas. In that case, recommend Manulife Travel Insurance for Visitors to Canada.

What is it?

Different amounts of coverage are available to help protect visitors to Canada from out-of-pocket health care expenses.

What’s covered?

• Emergency medical attention
• Coverage for paramedical services
• Ambulance transportation
• Emergency dental treatment
• Expenses related to death
• Emergency medical return home
• Additional expenses for meals and hotel
• Visit to bedside if travelling alone
• Childcare expenses
• Return of children
• Trip Break

Apply Online Now

Tips, Tricks, and Financial Hacks for House Hunters!

Image courtesy of Pixabay

Do you feel like you need a few tricks up your sleeve to buy a home? Good news! You don’t need to work magic to purchase a property. Shed that sensation with these terrific, under-recognized financial hacks for homebuyers.

Increase Your Credit Score

When it comes to buying a house, your credit score is a pivotal piece of information. As explained by SmartAsset, your credit score has a three-pronged, direct impact on your home loan. It affects the amount of your loan, your interest rate, and the kind of loan you can get. Your credit score is a snapshot of your financial health, and the better your rating, the better your loan will be. Therefore, it’s in your best interest (literally!) to increase your credit score. Before you begin the homebuying process, you should request a credit report and review all the data on it to identify room for improvement. You can improve your credit rating in several different ways:

●     Dispute errors in your credit history, such as accounts you never opened. 

●     Pay down your debt. 

●     Increase your credit limits, as the margin between what is available and what you owe can appear to be problematic.

●     Reconcile dings by asking for forgiveness on late payments.

●     Negotiate removal of mistakes on your part, such as unpaid debts.

●     Dispute other negative marks; sometimes lenders will let go of issues if they are small or if their records are inconclusive.

Stow for Your Down Payment

Sometimes we do things we don’t want to do because it’s a healthy choice. The typical down payment lenders require is 20 percent(min 5% on insured mortgages), and on a $200,000 home, that means coughing up $40,000. Saving up cash for a bigger down payment is a great way to get a better home loan, but as Benzinga notes, it may mean making choices that are uncomfortable. For instance, you can save your rent payment by housing with a close friend or relative for a while or sell your car and take public transportation or carpool. You should also research what the average down payment is for homes in your target area, or the percentage of homes that sell under their listed price. Saving up will help ensure you have sufficient funds ready to negotiate your sale.

Besides your down payment and mortgage, there are other home expenses to consider, including utilities and routine maintenance. It’s a good idea to use a home cost calculator to get an idea of the real cost of owning a home.

Find Relisted Properties

Do some sleuthing! Look for homes that were pulled off the market and relisted. As time drags on, the seller will often accept a lower offer. When you’re examining listings, pay attention to the continuous days on market (CDOM). That number tells you the number of days since the property was initially listed.

Look for Good Bones

As the Chicago Tribune points out, you can often stretch your dollars by buying an ugly home. It’s also a great way to get into a neighborhood you couldn’t otherwise afford. Finding a home in good repair but out-of-date style-wise means you might be able to score a diamond in the rough. Outdated appliances, flooring, paint, light fixtures, and other cosmetics may not be easy on the eye, but they are often easy on the wallet. Make sure the property’s roof, plumbing, foundation, and electrical structures are healthy; you can work on making the place suit your style after you move in. 

Winter Can Work

Winter is when the housing market can slow significantly. Some experts note that between weather, the holidays, and being in the midst of the school year, many potential homebuyers put things on hold. That means you can take advantage of the season, and you might just have your pick of homes -- with less competition and better bargaining power to boot.

Hacks That Work for You

While it may be a challenge, you don’t need to be a magician to become a homeowner.  Make wise decisions and incorporate smart financial hacks into your bag of tricks. You’ll be a homeowner in no time!

Sara Bailey