Renewing your mortgage? Ottawa has quietly made some regulatory changes that could save you big money

General Michael Distefano 15 May

Some money-saving updates to Canada’s mortgage rules could save you some loot if you’re renewing a mortgage.

Here’s what changed.

In October of 2016, the government banned refinances from being default insured. But regulators allowed lenders to keep insuring transfers. A “transfer” is when you switch lenders to get a better deal, but don’t increase your mortgage risk − as opposed to a “refinance,”in which you may increase your mortgage amount and/or amortization.

              

 Ever since, lenders have not been able to insure mortgages that were previously refinanced. That means you couldn’t get insured mortgage rates, which are often at least 20 basis points (bps) better than uninsured rates.

But now you can.

 On April 30, all three of Canada’s default insurers officially announced an end to this costly prohibition. Canada Guaranty, for example, stated:

“After additional consultation with the Department of Finance and the other mortgage default insurers, we have received clarification that if a prior uninsured loan has already been advanced with an Approved Lender, that loan may be switched to another Approved Lender and insured, regardless of the loan originally being a refinance, purchase or having an amortization greater than 25 years.”

Canada Guaranty explains that this is possible “provided the amount of the outstanding balance is not increased at the time of transfer and the amortization period does not exceed the lesser of the remaining amortization or 25 years.”

Long story short, if you refinanced your mortgage and now want to switch lenders to get a better deal, you get access to Canada’s very best rates (which are insured rates). On the average existing $200,000 mortgage, 20 bps of rate savings keeps almost $1,900 in your pocket over five years.

Here are seven more tips if you’re thinking about switching lenders:

 1. If your mortgage is already default insured at the time you change lenders, you’ll get the lowest rates of all.

2. A bunch of lenders now let you switch a mortgage and secured line of credit (a.k.a. a “collateral charge”) to a new lender and get the best insurable rates. This wasn’t common until recently. You’ll often have to pay about $1,200 in legal, appraisal and discharge fees to do this, but if you can save more than that in interest, you’re still ahead.

3. If you have a regular mortgage (a.k.a. a “standard charge”) and switch lenders, your new lender will usually pick up the legal and appraisal fee if you go for a three-year term or longer. But you’ll still be on the hook for your old lender’s “assignment” fee (about $250 or more in most provinces).

4. Here’s a simple mortgage rate comparison calculator to see if switching lenders will save you more than your closing costs.

5. Some lenders let you roll up to $3,000 of closing costs into the new mortgage, even if you don’t refinance. That way, you don’t have to be out of pocket for things such as appraisal fees, discharge fees and mortgage penalties.

6. If you switch lenders with an insured mortgage that you got before Oct. 17, 2017, “the mortgage rate stress test requirement does not apply,” CMHC says. In other words, some lenders will only make you prove you can afford payments based on their discounted five-year fixed rate (e.g., 3.49 per cent) instead of the Bank of Canada’s posted five-year fixed rate (e.g., 5.34 per cent). Mortgage brokers know who these lenders are.

 7. $1-million-plus properties usually cannot be default insured. But if you switch a mortgage on a home that was worth less than $1-million, and insured, and the property value subsequently rose to more than $1-million, you may still be able to get insured rates.

These “escape clauses” will result in big banks losing more insurable customers at renewal. As we speak, non-bank lenders are widely reporting spikes in transfer (“switch”) mortgage applications.

On the other hand, banks are retaining more uninsured mortgagors. I’m talking about higher-leveraged borrowers who are trapped because they can’t pass the Office of the Superintendent of Financial Institutions’ new uninsured mortgage stress test. That rule could keep about one in 10 borrowers at the mercy of their bank because they can no longer switch lenders to save money. This is possibly the most short-sighted mortgage regulation of all time, but let’s save that for a future column.

In the meantime, if your mortgage is coming up for renewal give me a call my tips may score you a better deal.  Happy switching…

Michael Distefano
Mortgage Agent and Manager of operations
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Niagara largest Mortgage Broker
106- 5017 Victoria Ave Niagara Falls L2E4C9
T 905 357 5366 F 905 357 6654 C 905 246 5363
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IMPROVING YOUR CREDIT SCORE

General Michael Distefano 11 May

Your credit score is a big factor when you apply for a mortgage. It can dictate how good your interest rate will be and the type of mortgage you qualify for.

Mortgage Professionals are experienced helping clients with a wide range of credit scores so we can find you a mortgage product even if your credit is far from perfect.

The good news about your credit score is that it can be improved:

  • Stop looking for more credit. If you’re frequently seeking credit that can affect your score as can the size of the balances you carry. Every time you apply for credit there is a hard credit check. It is particularly important that you not apply for a credit card in the six months leading up to your mortgage application. These credit checks may stay on your file for up to three years.
  • If your credit card is maxed out all the time, that’s going to hurt your credit score. Make some small monthly regular payments to reduce your balance and start using your debit card more. It’s important that you try to keep your balance under 30% or even 20% of your credit limit.
  • It’s also important to make your credit payments on time. People are often surprised that not paying their cell phone bill can hurt their credit score in the same way as not making their mortgage payment.
  • You should use your credit cards at least every few months. That’s so its use is reported to credit reporting agencies. As long as you pay the balance off quickly you won’t pay any interest.
  • You may wish to consider special credit cards used to rebuild credit. You simply make a deposit on the card and you get a credit limit for the value of that deposit. They are easy to get because the credit card company isn’t taking any risks.

Contact a Dominion Lending Centres BTB Mortgage Solutions Mortgage Professional if you have any questions 905 357 5366. www.beatthebankmortgage.ca

WHAT IS A REFINANCE?

General Michael Distefano 4 May

DLC BTB Mortgage Solutions  Niagara largest Mortgage Broker 106- 5017 Victoria Ave Niagara Falls L2E4C9
T 905 357 5366 F 905 357 6654 C 905 246 5363 FSCO 12039 APPLY ONLINE ANYTIME www.beatthebankmortgage.ca

Refinancing a home is one of those things where people understand what it is but have trouble explaining how it works. To put it simply, refinancing your home allows you to access the equity you have built up, by changing the mortgage amount.

Let’s say you bought a $300,000 condo and you paid 20% ($60,000) as your down payment and had a mortgage of $240,000. Over the next 4 years, you continue making payments and pay down the $240,000 you owed and now that amount is only $230,000. Your mortgage is up for renewal in a year, but you want to do some renovations and you need to access the equity in your home- this is where a refinance could come into play.

What this means is you will get an appraisal of your current home and submit that to a lender. Let’s say your $300,000 condo is now worth $350,000 and you owe $230,000. You have built up an additional $60,000 in equity ($350,000 – $230,000 owing – $60,000 initial down payment= $60,000). You have a mortgage of $230,000 on a home worth $350,000, therefor your equity in the home is $120,000.

To access that $120,000, you can refinance your mortgage. So let’s say you want to go back and take $50,000 from the $120,000 you have built up. Your new mortgage would go from $230,000 to $280,000, and that $50,000 is going to go from the lender to you. You are borrowing money from the lender, but adding that money back on top of your mortgage.

This is why people will refinance their home to make larger purchases. The bank will lend you the money now and get it back in the future, plus interest, because it is being added to the mortgage.

This is just one way people are able to use their home to access cash. Other ways people can do this, especially if they are looking to complete renovations, is through home equity lines of credit, collateral charges, and purchase plus mortgages. Knowing this before you buy can be extremely beneficial, that is why it is important to work with a qualified Dominion Lending Centres broker. Give us a call at 905 357 5366 or visit us online at www.beatthebankmortgage.ca !

DLC BTB Mortgage Solutions FSCO 12039
Niagara largest Mortgage Broker
106- 5017 Victoria Ave Niagara Falls L2E4C9
T 905 357 5366 F 905 357 6654 C 905 246 5363

APPLY ONLINE ANYTIME www.beatthebankmortgage.ca

Researching renewals is imperative

General Michael Distefano 3 May

A surge in mortgage renewals, rising interest rates and new stress testing rules are conspiring to make refinancing your mortgage more complicated and more expensive.

Mortgage broker Kelly Wilson, co-owner of the Wilson Team mortgage brokerage in Ottawa, says a majority of Canadians renew with their same lender, but it’s still important to check out your options.

“If you can save yourself 30, 40, 50 basis points, it’s going to save you thousands of dollars over the next five-year term,” Wilson says.

Around 47 per cent of all existing mortgages will need to be refinanced this year, according to CIBC estimates, up from the 25 to 35 per cent range in what the bank says is a typical year. It attributes the increase to the unintended consequence of regulatory changes in recent years.

The surge in renewals comes as mortgage rates have started to move higher.

Several of Canada’s big banks have raised their posted rates for mortgages in recent days, while special offer rates have been trending higher since last summer.

Offers for five-year fixed mortgage rates have moved north of three per cent in recent weeks compared with under 2.5 per cent a year ago, according to rate-watching website Ratehub.ca.

Wilson says that means if you’re renewing at a higher rate than you’re currently paying it will mean your mortgage payments rise, assuming the amoritization period remains the same.

Homeowners with uninsured mortgages who stretched themselves to the limit when they bought their home and are looking to renew their mortgage may also face additional challenges.

Under the rules brought in at the start of the year, if they are looking to change their lender when they renew their mortgage they may have to face a new stress test.

That means, for some borrowers, it may not be possible to move their mortgage to a different bank, leaving them with less power to negotiate with their current lender.

Wilson also says if you have a home equity line of credit, it may cost you a little more if you want to move your mortgage, even if you don’t have an outstanding balance on the line of credit.

“You might save on the rate, but because of the fees you might not be able to move around,” she said.

Grant Rasmussen, CIBC’s senior vice-president of mobile advice, recommends you start doing your homework up to six months ahead of your actual renewal date.

He says that means talking not just with your lender, but also with your financial adviser to get an updated look at your expenses and income and how that may have changed since you first obtained your mortgage.

“It’s important to make sure you do the math and you feel like you’ve figured out how can I do the best for my family,” he said.

He notes that starting early may allow you to lock in a rate, which could save you a few bucks if rates continue to rise this year.

You will also have to weigh the decision of a fixed versus a variable rate mortgage. While the variable-rate offers are lower than the fixed-rate offerings, the Bank of Canada has raised its influential overnight rate target _ which affects variable rate mortgages _ three times since last summer and suggested it is on the path to higher rates.

“How comfortable are you with risk and how much peace of mind do you want? That’s a trade off,” Rasmussen said.

But whatever your situation, he stressed to start early.

“You don’t want to end of feeling time pressed and feeling like you have to make these decisions without really mapping out a plan.”

Researching renewals is imperative call our team for expert advise at 905 357 5366 Dominion Lending Centers BTB Mortgage Solutions 5017 Victoria Ave Niagara Falls www.beatthebankmortgage.ca  Niagara Largest Mortgage Broker !

Copyright The Canadian Press

General Michael Distefano 12 Mar

Canadian household debt compromising banking system, warns Bank of International Settlements

By The Canadian Press 12 Mar 2018  Armina Ligaya

Canadians’ collective household debt has climbed to $1.8 trillion as an international financial group sounds an early warning that the country’s banking system is at risk from rising debt levels.

Equifax Canada said in a new report Monday Canadian consumers now owe $1.821 trillion including mortgages as of the fourth-quarter of 2017, marking a six per cent increase from a year earlier.
Although 46 per cent of Canadians reduced their personal liabilities, roughly 37 per cent added more debt in larger amounts on average, according to the credit reporting agency’s latest report. In turn, the average amount of personal debt increased 3.3 per cent to $22,837 per person, not including mortgages.
“Despite the high debt, mortgage payments are generally on time, which could be attributed to low unemployment numbers and mortgage and auto finance interest rates which are still at historically low and reasonable levels,” said Regina Malina, Equifax Canada’s senior director of decision insights in a statement released Monday.
The fresh numbers come as an international financial group owned
by the world’s central banks says Canada’s
credit-to-gross-domestic-product and debt-service ratios show early
warning signs of potential risk to the banking system in the coming
years.
The latest report by the Bank of International Settlements (BIS) said Canada’s credit-to-GDP gap and debt-service ratios have surpassed critical thresholds and are signalling red, pointing to vulnerabilities.
BIS, however, cautions that these indicators should not be treated as a formal stress test, but as a first step in a broader analysis.
The country’s credit-to-GDP gap is 9.6, above the group’s critical red zone threshold of nine. This indicator measures the gap between the country’s credit-to-GDP ratio and the overall long-term trend over time _ a widening of which can indicate a possible financial imbalance. Canada is one of four countries in the red zone on this metric along with Hong Kong, China and Switzerland, at 30.7 per cent, 16.7 per cent and 16.3 per cent, respectively. The United States, for comparison, is -6.9.
As well, Canada’s debt-service ratio, which measures interest payments and amortizations relative to income, is at 2.9 per cent. That surpasses BIS’ critical threshold on this measure of 1.8 per cent. Canada is one of five countries in the red on this metric, again along with Hong Kong and China at 6.9 per cent and 5.1 per cent, respectively. The debt-service ratio in both Russia and Turkey were also showing signs of risk, at 1.8 per cent and 6.1 per cent, respectively.
“Canada, China and Hong Kong SAR stand out, with both the credit-to-GDP gap and the DSR flashing red,” the international body said in its report, released Sunday. “For Canada and Hong Kong, these signals are reinforced by property price developments.”
The Canadian PressVisit our website at www.beatthebankmortgage.ca for more valuable information.

 

MAKING SMARTER DOWN PAYMENTS

General Michael Distefano 6 Mar

Dominion Lending Centres BTB Mortgage Solutions

4849 Jepson St Niagara Falls 905 357 5366 www.beatthebankmortgage.ca

Mortgage Insurance Premiums. Many people know what they are- an extra cost to you the borrower. But not many people realize how they are calculated. Understanding the premium charges and how they are calculated will help lead you to making smarter down payments.

  • 5%- 9.99% down payment of a purchase price is a 4% premium
  • 10%- 14.99% down payment of a purchase price is a 3.10% premium
  • 15%- 19.99% down payment of a purchase price is a 2.8% premium

So, that means with a $300,000 purchase price and a $30,000 down payment (10%), you would have a 3.10% premium added to your mortgage, making your total mortgage amount $270,000 + $8,370 for $278,370 total. The $8,370 being 3.10% of your original $270,000 mortgage.

Now let’s say you have a down payment potential of $60,000 and have the income to afford a $350,000 purchase price but you found one for $325,000. Using your entire $60,000 down payment (18.46%), your new mortgage amount would be $272,420, where $7,420 of it represents the mortgage insurance premium.

But what if you change that $60,000 (18.46% down payment) to say $48,750 and have a down payment of exactly 15%? Well, your premium is still the exact same as it would be with an 18.46% down payment because your premium is still 2.8% of the mortgage amount. That means you will now save $11,250 (difference in down payments), while only paying $7,735 in premiums (an increase of $315).

I don’t know about you, but if someone told me I could put $11,250 less down and it would only change my insurance premium by $315, I am holding onto that money. You now have more cash for unexpected expenses, moving allowance, furniture, anything you want. You can even apply it to your first pre-payment against your mortgage and pay the interest down while taking time off your loan. Obviously if cash is not an issue, putting the full $60,000 would be better seeing as you are borrowing less and paying less interest. However, if cash is tight, why not hold onto it and pay that difference over the course of 25 years?

Consult with a Dominion Lending Centres BTB Mortgage Solutions mortgage professional when it comes to structuring your mortgage request with a bank. It is small little things like this that make all the difference. Call us today at 905 357 5366 or toll free 877 357 5366.

Welcome Home Niagara Home ownership Program

General Michael Distefano 5 Feb

 

Did you know we can use the

with some of our mortgage loan products ?

The purpose of the Home ownership Program is to:

Make home ownership a reality for low to moderate income households in Niagara
Ease the demand for rental housing by assisting renter households to buy affordable houses
Offer down payment assistance for homebuyers through a 5% forgivable loan to a maximum of $16,964
Encourage developers to build affordable housing

Give Dominion Lending Centres BTB Mortgage Solutions a call today at 9054 357 5366 to see if you qualify for a Home ownership assistance program loan.

More info:

Eligible Buyers

To be eligible for a down payment loan a buyer must:

  • Be a Canadian Citizen, Landed Immigrant or have Refugee Claimant Status with no outstanding removal order
  • Be 18 years of age or older
  • Not own or have an interest in other residential properties or owe arrears to a government assisted affordable housing provider or Niagara Regional Housing
  • Currently be renting and looking to buy a sole and principle residence in Niagara
  • Have a gross household income below $77,600 and assets below $30,000
  • Be eligible to obtain a mortgage
  • Provide documents to prove eligibility
  • Agree to register loan on title for 20 years

Eligible Homes

  • New homes (home inspection encouraged)
  • Resale homes (home inspection required at buyer’s cost)
  • Purchase price cannot exceed $339,294
  • May be detached, semi- detached, townhome, duplex or condo
  • Must be modest in size and features
  • Cannot be a home in which the buyer or any member of the buyer’s family has an ownership interest

Homeowner Assistance

  • Homeowners will receive 5% of the cost of an eligible home (maximum $16,964) at the time of purchase closing
  • No interest will be charged on the loan

Conditions for Repayment by Homeowner

The original down payment loan (plus five percent of increased value of the home) must be repaid if:

  • The home is sold before the 20 year period expires
  • The homeowner no longer lives in the unit
  • The homeowner agrees to voluntarily repay the loan
  • The homeowner is in default of mortgage or NRH loan agreement

MORTGAGE BROKER VALUE

General Michael Distefano 25 Jan

Not surprisingly, borrowers often default to their own Banker. And why not? It’s an established and comfortable relationship. Perhaps it’s viewed as the path of least resistance. But is it the right lender for the borrower’s current specific needs? Perhaps not.

More sophisticated borrowers may be of a size or scale that they have their own internal resources in finance, quite capable of securing the required financing. They are likely only in the market infrequently however, and almost certainly not fully knowledgeable as to all of the financing sources available.

Aren’t all Lenders pretty much the same?
Borrower’s may think that all institutional lenders are pretty much the same. Offering comparable rates, and standardized borrowing terms. This is rarely the case. Lender’s often prefer one asset class over another. They may have a particular need for one type of loan. A specific length of loan term may be desirable, for funds matching purposes. Real Estate risk is a fact for real estate lenders. How they mitigate this risk differs however. It may be stress testing interest rates during the approval process. Sophisticated risk pricing models may be used, having regard to previous loss experiences. The lender may rely significantly on collateral value, or guarantees. The conditions precedent to funding will often differ from lender to lender.

A real world example
I had the pleasure last year in advising a client who had 3 sizable real estate assets, in 3 quite distinct asset classes. The borrower’s loan amount requirements were significant, however they were flexible on loan structure. Accordingly, I sought out competitive, but differing deal structures. My goal was to provide a competitive array of options. A number of “A” class lenders were approached, several/most of whom this particular borrower had no previous experience with. I shortened the list to 5 lenders, and received Term Sheets from each.

Each Offer was competitive on a stand alone basis, but they differed quite substantially, in the following ways:

  • Loans were either stand alone, or blanket loans, or some combination.
  • Length of terms offered, differed by asset class.
  • There was as much as a 75 bps rate difference, from highest to lowest Offer.
  • The amortization period depending upon asset class, ranged from 15 to 25 years.
  • Loan amounts on individual assets differed as much as 20%.
  • Third party reporting requirements differed between lenders.
  • There were a combination of fixed vs. floating rate loan structures.
  • Recourse was limited by some lenders, on select assets, or waived entirely, upon a higher rate structure.

Leverage Your Knowledge
These variances are striking, yet each of the 5 lenders were considering the precise same asset, at the same time, with common supporting information from which to base their analysis. How was the borrower to know which Offer to exercise? As a Broker, I can add value by helping the borrower to consider both their immediate and longer term strategic requirements, in the context of their overall real estate portfolio needs. This was precisely how this borrower landed on the most appropriate Offer for their particular circumstances. In this particular case we presented different, yet competitive, and uniquely structured options for the borrower’s consideration.

Consider a Dominion Lending Centres Mortgage Broker when next in the market for financing. Leveraging a Broker’s knowledge is a tremendous value proposition.

Michael Distefano  Apply now: https://secure.dominionlending.ca/?app=11431&lang=en

MORTGAGE AGENT

 

Bank of Canada makes interest rate announcement by Bloomberg 17 Jan 201

General Michael Distefano 17 Jan

Bank of Canada makes interest rate announcement
by Bloomberg 17 Jan 2018

The Bank of Canada pushed forward with another quarter-point interest rate increase and said more hikes are likely coming, even as it cautioned it isn’t in any rush to return rates to more normal levels.

Policy makers led by Governor Stephen Poloz increased the benchmark overnight rate to 1.25 percent, the highest since the global recession and their third hike since July. The move is a nod to a red-hot economy running up against capacity with a jobless rate at the lowest in more than four decades.

At the same time, central bank officials repeated their dovish language about moving ahead cautiously and warned they expect the economy will require continued stimulus to remain at capacity.

“While the economic outlook is expected to warrant higher interest rates over time, some continued monetary policy accommodation will likely be needed to keep the economy operating close to potential and inflation on target,” the Bank of Canada said Wednesday in a statement from Ottawa. “Governing Council will remain cautious in considering future policy adjustments.”
Key Takeaways

In raising rates, the Bank of Canada points to strong data, inflation at target and economy at capacity — and says more hikes are expected.
At the same time, it retains cautious language about future adjustments and adds new language around the need for continued monetary accommodation
The central bank cites growing risks around North American Free Trade Agreement negotiations, which are “weighing increasingly” on Canada’s economic outlook
Canada becomes the first major central bank to move ahead with a rate increase in 2018. Investors have spent the early days of the year watching central banks around the world for signs the period of extraordinary stimulus is coming to an end. The Bank of Japan jolted bond markets with a surprise change to its purchasing program, while some European Central Bank officials have called for their bond-buying program to end in September.
Striking Balance

For months, Poloz has been trying to strike a balance between gradually bringing interest rates back to more normal levels amid faster-than-expected growth and an employment boom, without triggering a slowdown.

A recent run of strong economic data has made that task more difficult, and the improved outlook was evident throughout Wednesday’s rate statement and monetary policy report.

The central bank painted a picture of an economy with inflation already close to target, output largely at capacity, a stronger- than-expected housing sector, and a faster-than-expected reduction in labor market slack.

That prompted officials to increase their projections for inflation in 2018, and growth over the next two years.

The reasons to remain cautious are less tangible, centered around growing concerns about the outcome of Nafta negotiations.

“Uncertainty surrounding the future of the North American Free Trade Agreement is clouding the economic outlook,” the central bank said.
Rate Sensitivity

There are also questions about the economy’s sensitivity to interest rate increases and whether its potential growth could be accelerating. The bank said wage gains remain modest, even with a recent pickup.

The Bank of Canada forecast a bigger hit on exports and business investment due to worries about Nafta, and incorporated an increased sensitivity of interest rates because of the country’s high household debt levels.

The rate increase was expected by 26 of 27 economists surveyed by Bloomberg News and investors had almost fully priced in a hike.

Questions remain about how quickly the central bank will raise from here and where rates will eventually settle. Markets had been pricing in at least three increases this year, which would bring the benchmark rate to 1.75 percent.

The Bank of Canada retained its estimate that its so-called neutral rate — a sort of Goldilocks rate that keeps the economy neither too hot nor too cold — is at about 3 percent. But the comments on the need for continued accommodation at full capacity could suggest policy makers aren’t anticipating a return to neutral any time soon.

The central bank also increased its forecast for how quickly the economy could grow without triggering inflation — to an average of 1.6 percent over the projection horizon. The central bank said it is monitoring the extent to which strong demand could boost potential growth further.

“In this respect, capital investment, firm creation, labor force participation, and hours worked are all showing promising signs,” it said, adding that wages have picked up by less than what “would be typical” for a labor market without slack.

Call us before the next rate hike 905 357 5366

Copyright Bloomberg News

MORTGAGE BROKERS ARE SUPER HEROES

General Michael Distefano 13 Dec

Mortgage brokers have a reputation as superheroes. Although we cannot leap tall buildings in a single bound we can do extraordinary things.
Is the down payment money coming from outside of Canada? I had a client who had a joint account with her father in Japan. She showed me bank statements with the money in the account and leaving Japan. I had another bank statement showing the funds coming into her Canadian account. Finally I showed the foreign exchange rate for that day from Yen to CAD. The bank accepted this as a suitable paper trail.
An unusual down payment source? I had a client who sold his vintage Cadillac for his his down payment. A copy of the registration, the bill of sale and a bank statement showing the funds going into his account was deemed fine by the bank.
Is your down payment coming from multiple sources? I recently had two brothers purchasing a home together. They both had their money in RRSP’s and TFSAs. It took some explaining but we were able to show all the down payment and closing costs coming from four different sources.
Several years ago I had a client defaulting on two mortgages. Foreclosure was just days away.
I was able to consolidate the two mortgages, pay them out and get a reasonable payment schedule for one year. After the year , I moved him to a regular lender and arranged for a line of credit so that he could pay for some home renovations with a low interest rate secured against his home.
I had a couple who wanted to buy a home. The husband had had a business failure and it had affected his credit. I could only use the wife’s credit and her income for this purchase. She was a foster mother with six children. Her income was good but not high enough. I was able to get the lender to gross up her income by 25%, as her income was tax free. This was enough for them to buy a large home for the couple and their foster children.
Small towns can also pose unique problems. I had a client who wanted to refinance his home. I checked his credit report and found a credit card that he did not have. He told me that there were five people with his name in this small town. He also revealed that he had an account at Home Hardware that was not reporting on the credit bureau. The manager was a friend and thought that the loan would hurt his credit so they made an informal arrangement to pay it off.
Did I mention that he had three jobs? He worked as a tire installer, and invoiced the company from his firm. I was able to get a lender to accept this client his varied income and got the mortgage . Come to think of it , perhaps mortgage brokers are superheroes. If you have a difficult situation the best person to speak to is a Dominion Lending Centres mortgage professional, if it can be done legally, a broker can do it. Call toll free 877 357 5366

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