As Labour Day is upon us, read some of our inspiring client stories and learn how we work together to make their goals possible.
1) Find out How We Saved Our Clients over $50,000 in 1-year!
Recently, we had a very nice couple who entered into a Rent-to-Own Agreement to purchase their dream home as they did not qualify for mortgage financing at the time they entered into the contract. Following the advice of their lawyer, they gave a large deposit and signed a two-year lease agreement and had to complete on their purchase contract on very short notice or they would have lost their entire deposit plus any additional contribution that was paid during each month of their lease.
What most lenders want to see is that on a Rent-to-Own Agreement, the deposit on a contract must be 100% refundable and the Rent-to-Own Agreement must be registered on the title of the property. Without doing so, the tenants are unable to secure financing from 98% of the lenders in the marketplace. Luckily, the property increased in value from the day they entered into the contract and two years later, and we were able to work with the higher value of the property for the purchase.
The landlords were putting a ton of pressure on these poor clients to complete or they would have lost their deposits totaling over $100,000. In order to help them, we used the higher value of the property appraisal to obtain temporary private mortgage financing so that these clients were able to transfer the title from the seller over to them. Our clients were so relieved after we were able to complete the sale of their dream home, but that wasn’t the end.
We understand that private financing is only a temporary solution due to higher mortgage interest rates and payments, once the property was in their name; we contacted several of our lender partners and were then able to refinance their private mortgages into a bank lender that offered market prime rates. By refinancing and consolidating their other bills into the new mortgage, they were able to reduce their monthly bills by over $3,800 per month and total savings of over $50,000 in interest in their first year alone.
We love sharing success stories like these because we are able to make a difference in peoples lives every day. If you or someone you know is thinking of entering into a rent to own agreement or is already in one, please have them contact us first so that we can help protect them as well.
2) Home Equity Success Story: How the Hot Real Estate Market Made Dreams Come True
Our clients Michael and Helena (we didn’t use their real names to protect their identity), purchased their condominium in downtown Vancouver, BC in 2012 for $350,000. Their recent appraisal valued their condominium at $700,000, with over $350,000 in appreciation and after paying down their mortgage over the last few years, they had built up over $400,000 in home equity in their condo.
They had always dreamed of becoming rental investors and here is how we were able to help them. They qualified to refinance their mortgage on their principal residence for up to $560,000, which allowed them to advance $160,000 from their home equity and using the $160,000 towards a down payment on an investment property. They looked into purchasing an investment property for $700,000 and put the 20% down payment, leaving their mortgage payments at $2,210 per month (approximately).
By having an investment which rents for $3,000, they were able to cover the monthly mortgage payment, property taxes, and insurance and still have a little left over each month.
More and more homeowners are looking at these options; you can have another property paid off in 25 to 30 years for your retirement home or as an investment for your kids in the future. If you have thought about doing this, please contact us and we will be more than happy to run the numbers for you to see if it will make sense.
3) How Self-Employed Folks Can Get Approved For A Mortgage, Yes It Is Possible!
Here is a heartfelt testimonial from one of my past self-employed clients. I love helping people achieve their home ownership dreams!
“The process of buying a house can be a nerve-racking time for anyone. Chances are, a house will be the single biggest purchase you make during your lifetime, so it’s absolutely imperative that you go in prepared and ready for war. I had been looking through MLS listings for about a year before deciding to pull the trigger, but I had no idea how competitive Vancouver’s real estate market had become. With no end in sight to climbing real estate prices, I put my Vancouver condo up for sale and started looking to buy a house.
From the first moment I contacted him, Ajit had supreme confidence in his ability to get me approved for a mortgage with competitive rates — but then again, so did the others that I spoke to before contacting Ajit. Getting approved for financing, however, was not a simple task, as I’m self-employed and had already been turned down for a mortgage by my bank. Even though my first option didn’t work out for me, Ajit had a seemingly limitless list of secondary options and helped me choose the mortgage that was best for me and my financial situation.
In addition to helping me find a mortgage, Ajit seamlessly fit into the network I had created between my architect, real estate agent, and notary, making sure that the mortgage was taken care of and that he was always available to answer any questions we had. By making himself so accessible, Ajit made all of us feel as if we were his only clients. I have never experienced this level of client support before and if it wasn’t for him, I would’ve had multiple nervous breakdowns. Looking back on this house-buying experience, I’m extremely grateful to have had access to Ajit’s professional expertise, moral support, and assistance guiding me.
Ajit is a true professional in every sense of the word — confident, knowledgeable, seasoned, but most of all, effective. This will definitely not be the last house I buy and from now on, I plan to use Ajit every single time I make a real estate purchase. Ajit makes it so that you can focus all of your time and energy on finding your dream home, not on whether or not you’ll get approved for a mortgage.” — Roy D.
If you know of someone who is self-employed and not getting the best advice about their mortgage, please feel free to introduce them to us.
