Did You Know?

Did you know? We can help you with Equity Take Out options such as:

Purchasing a secondary property 

• This includes Rental Properties

Payment of personal income tax owing to CRA, Realty Tax Arrears or Consumer Proposal

• Consolidating debt will put you on a better financial path, and allow you to save monthly

Home Renovations

•  Equity Take Outs can be used to invest in self-contained rental units, including basements

Investments in a business

• Business-for-Self (BFS) can take out equity to reinvest in your business

​Other points to know

• No set maximum
• The Equity Take Out can be used to cover additional broker fees (requires a letter of direction for the lawyer)
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  MONEYVALUE
  E: contact@moneyvalue.ca
  T: 416 822 5886

Case Study 13

Purpose Applicant purchased a new construction home for $400,000 in December 2017 and wants to capitalize on lift in value  Property Contract to purchase with a $25,000 deposit was entered into in Dec. 2017 $500,000 current appraised value 3 comparables in a highly marketable prime lending area with DOM under 90 Credit 575 FICO score Excellent mortgage repayment history Income and Debt Servicing Salaried income earning $89,000K annually Employment verified by employment letter, pay stub, and verbal confirmation by employer GDS/TDS is 36/36% with stressed TDS of 43% using the mortgage rate plus 200bps Mortgage Details LTV 80% Pre-Construction Property Value (Dec. 2017) $400,000 Current Market Value (2018) $500,000 Loan Amount $400,000 GDS/TDS Calculation Salaried Income  100% $89,000 GDS/TDS 36/36% Stressed TDS 43% Deal Rationale: Client got a 1 year mortgage for $400,000 (which is 80% LTV of current market value for the home and also doesn't exceed 100% of the original purchase price). The client was able to get his $25,000 deposit back. Did you know? This scenario can help anyone with Rent-to-Owns and Pre-sales contracts. For more information, don't hesitate to contact us. MoneyValue www.moneyvalue.va e: contact@moneyvalue.ca T: 416 822 5886