Thursday, May 30, 2019
Wednesday, May 8, 2019
Case Study: 85% rental offset on a basement rental.
Purpose
- To purchase a new home with basement rental unit
- Qualify for 80% LTV using the rental unit income
- Stable salaried position earning $75,000
- $800/month rental income as proven by signed lease agreement, and can provide fair market rent analysis with 2 comparables
- 580 FICO due to missed bills during time of marital breakdown
- Excellent mortgage repayment history
- GDS/TDS is 24/35% with stressed TDS of 44% using the mortgage rate plus 200bps
- $450,000 property value
- Self-contained basement rental unit with own entry, full kitchen and bathroom
- Good condition, well maintained property
- Suburban area with DOM under 30
- $30K from client's own savings
- $50K gifted from family member
Deal Rationale:
Client was offered the following options:
- A 1 year mortgage at 80% LTV for 5.14%
- A 2 or 3 year mortgage at 80% LTV for 5.39%
The client chose the 1 year term at 5.14% offer and we used the client's $800 in monthly rental income to offset the client's expenses:
| Mortgage Details | |
| LTV | 80% |
| Property Value | $450,000 |
| Mortgage Balance | $360,000 |
| Mortgage Rate | 5.14% |
| Stressed Rate | 7.14% |
| Amortization | 30 |
Good or bad credit, Call Us for all your Mortgage Needs. Call +1 416 822 5886 Email: contact@moneyvalue.ca Visit www.moneyvalue.ca | ||||||||||||||||||||||||||||||
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