Creative Mortgage Ideas

Deposit Financing

An underutilized tool that many people could benefit from.

• firm offer on your home  
• need quick access to the equity need cash before completion of the sale of your home.
• 
  

This financing allows you to put that money toward:

• your new home
• closing costs
• debt payout
• other (furniture or moving costs)
• repaid upon the completion of the sale of your home
• Minimum $20,000.
• Maximum $100,000.
• Quick access to money.
• Minimum term is 40 days.

• Some fees apply.

Benefits of Reverse Mortgages 

• for Canadians 55+
• Appraised against the value of your home.
• Depending on the lender, you can access anywhere between 55%-59% of your home's value.

The amount you qualify for depends on:

• your age
• your location
• your home's value

You can receive the money in:

• a lump sum (all at once)
• scheduled payments
• on an as-needed basis

* You don't need to make monthly payments *

Use the equity in your home to:

• pay for a large ticket item (renovations)
• pay for in-home care
• pay off debt
• "top-up" monthly income
• gift an early inheritance to adult children 
• spousal buyout
• many other scenarios

This is an exciting and under-utilized tool that can be used in many different ways and the 

HELOC (Home Equity Line of Credit)

• 20% equity in home required
• good credit
• revolving
• borrow the money up to a specific limit
• easier to get approval
• short term solution
• shorter amortization
• affects credit rating

2nd Mortgage or Home Equity Loan

• higher risk
• higher rate
• lump sum
• lower limit
• higher interest rate
• lenders may consider bruised credit
• does not affect credit rating as much as HELOC
• secured against your property (collateral)
• doesn't affect credit as easily as HELOC

There are many things to consider prior to taking out a 2nd mortgage or a HELOC.

Contact me today to discuss!

First-time Home Buyer

• Be a Canadian Citizen or permanent resident 
• Lived in B.C. for at least a year 
•  principal residence 
• value of $500,000 or less

Are you eligible?

https://www.placetocallhome.ca/fthbi/eligibility-savings-calculator

FTHBI - First Time Home Buyer Incentive

• gov't gives an additional 5% or 10% to add to the down payment 
•  newly constructed home, or
• purchasing an existing home
• share part of your home's ownership with the government.
• the government shares in both upside and downside of property value, to a maximum +/- equal to 8% per annum from the date of advance to the time of repayment

Business for Self

Usually fall into one of the following categories:

• A sole proprietor with 2 years of verifiable (taxed) income
• A sole proprietor without verifiable income 
• Incorporated individual with 2 years of qualified (taxed) income 
• Incorporated without qualified income 

Who Benefits from Alternative Lending

• those with bruised credit
• high debt levels
• complex income (self-employed, rental, or foreign income) 
• those who failed the mortgage stress test
• will be required to have a larger down payment (20% or more) 
• will have higher interest rates
• broker is paid by the lender, just like in a traditional mortgage

Private Mortgage

• short term
• clear exit strategy in place
• generally 1 - 2 years in length (depending on the lender) 
• usually have a fee that the borrower must pay upfront
• payment for the fee is deducted from the loan upfront
• generally interest only payments 
• full loan amount due at maturity.

Spousal Buyouts

• Both parties need to be on title for a spousal buyout 
• basically a purchase, there is a lot of direction from the separation agreement for amounts to each and there are multiple options.
• All lenders require a separation agreement, or a signed letter by both parties and their lawyer confirming the split of the matrimonial home and any support payments. 
• Without a separation agreement or divorce in place, the couple is still married.  What could happen is one party could go and spend all the cash and STILL be entitled to 50% of the marital home under marital law. Step 1 is for the parties to talk to a lawyer.