Saturday, December 29, 2018

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)




  • TELL US YOUR STORY
    MONEYVALUE
    E: contact@moneyvalue.ca
    T: 416 822 5886

Friday, December 14, 2018

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
LTV80%
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