On a regular basis, Borrowers reach out to discuss cash-flow savings by paying off credit card and line of credit debt with a new mortgage.  An easy example includes a credit card with a balance of $30,000.  The monthly cost to carry this debt is approximately $900.  When added to a mortgage, on a refinance transaction, the monthly caring cost of this debt drops by approximately 75%.  The file requires income and property equity qualifying, but, this solution is available to many people who have owned their homes for multiple years and who are carried any sort of amount of unsecured, revolving debt.

A couple who purchased their home in mid-town Toronto in the 1990’s (for approximately $300,000) recently reached out to discuss options.  They have been retired for over ten years, are splitting their time between their Toronto home and their cottage in the Kawarthas and are having challenges maintaining both properties on a fixed income.  The final, and optimal solution was one that was a blanket mortgage that encompassed both places.  The addition of the second property allowed the mortgage provider to establish an income stream (set-up monthly) that met the ongoing costs associated with both places and this couple (he is 73, she is 76) with income to last for the next ten plus years hereby extending the timeline for their enjoyment of this home and cottage lifestyle.

The last few years, we would have at least one Borrower (or couple) per month reach out to discuss mortgage financing of a property that was purchased before the Stress Test qualifying rules came into effect.  The new rules (where we have to qualify using the Bank of Canada qualifying rate, which is much higher than the actual rate) have forced us to search for other mortgage financing options.  The ultimate solutions often include Lenders that are provincially regulated (so they do not need to qualify with the Bank of Canada rate) or alternative Lenders who allow for different qualifying methods.  Often, a viable solution is available if you know where to look!

A very successful entrepreneur engaged our team to help secure he and his fiance a mortgage for a house in the east-end Toronto.  With an accountant aiming to minimize the income tax this couple paid to CRA, this challenge was to structure the file, on limited income, to provide enough of a budget to buy a house.  Options exist for self-employed applicants that allow us to use certain business deductions, to help bolster the taxable income, to bring qualifying to a reasonable level.  What was the net result?  It took awhile to assemble the supporting documents but the clients were put into a mortgage with a Schedule A bank that exceeded their expectations.

One of Ki Kim’s first files was a couple who moved to Canada from Korea.  They had a substantial amount available for Down Payment but income was from part-time and contract sources.  No chartered bank would accept the ad hoc and inconsistent income stream to qualify for a mortgage.  The file was reconfigured to increase Down payment, submitted to a Lender that looks favorably upon New-to-Canada files, and a very palatable mortgage solution was delivered – that did not include a Lender Fee.  The clients love their new home and neighborhood.