The Business for Self (ALT A) product is unique in that the income stated by the borrower cannot be confirmed using traditional methods (previous years Notice of Assessments). As such, the product guidelines require that we assess the stated income for reasonability in relation to all other characteristics on the application such as borrower age, credit profile, LTV, etc. In order to provide a better understanding on how to evaluate these applications, the following are elements to consider in making the assessment: 1) Based on the type and nature of the business, is there an opportunity for the borrower to generate additional income? • What type of business is it? What field? Research the business via the internet. • How long have they had this business? Location? Number of employees? Website? Is there an opportunity for cash? • Is the nature of the company business-to-business (B2B) or business-to-consumer (B2C)? B2C businesses have a greater likelihood for a cash component. If there is a significant difference between net income and stated income, the difference should be associated to cash transactions. If the spread between reported and stated income is large, it should be justified through expenses. These types of applications would typically fall under “provable” income with the 15% gross up, however if the application makes sense, we may still be able to proceed under ALT A. 2) Ensure the rest of the borrower’s profile can support the level of income: • Credit Profile – do trades and limits reflect the typical profile for that income level? • Does the net worth seem reasonable based on the stated income? • Is there a significant increase in shelter payments? • Consider the GDS / TDS ratio? • Does the borrower’s age seem reasonable for the number of years in industry and business type? • Are they first time home buyers? Understanding the “whole picture” is the key to determining the reasonability of stated income and ensuring this program best suit your client’s needs. for your self employment mortgage home financing needs call us at www.darick.ca
Month: January 2014
ulti-unit rental properties, also known as triplex, four-plex and five-plex’s, are the more sought after properties by the average real estate investor and want-to-be real estate investors. When purchasing rental properties the more you put down the easier it is to make a profit and to qualify for the mortgage. However, at the same time the more you put down the less properties you will be able to purchase — it’s a catch-22. Down payment requirements Depending on the lender used, the down payment required to purchase a multi-unit rental property is between 20-25%. I give a range on this because it will depend on how many units are in the property being purchased. Although it is possible to purchase a multi-unit rental property with less than 20% down (as little as 12%) — this is on a case-by-case basis. Finally, if you are looking at purchasing a multi-unit rental property and will be occupying one of the units yourself, then it is possible to get that property for 10% with most lenders and as little as 5% down with others.
With USA Mortgage Help Desk, as a DLC mortgage agent you are in the very unique position to help your client obtain financing secured on a property in the USA. Even if your client was to look up the very same lender themselves, they would be required to set up a formal bank account PRIOR to having their mortgage request looked at and then have to coordinate, on their own, all documentation for the loan request. All communication would be up to them and most people do not have the time or skill set to handle this as it is a lot of work.
Your clients don’t know where to start – up until now not many people did (just ask around). USA Mortgage Help Desk can get your client formally pre-approved (and eventually APPROVED) BEFORE they have to set up a bank account with the bank, saving them a lot of time and hassle and making the dream a reality.
Home financing, Mortgage broker in Barrie, Best mortgage rates call 705 797 8811 www.darick.ca
Not all Variable Mortgages are created equal. Here are some terms that I have found to fluctuate from lender to lender:
Will they set the payment at the actual discounted rate or a higher rate to compensate for fluctuations in Prime?
Will they allow you to break the mortgage with a standard 3 month interest penalty? Will they permit a 5 year term?
Will they use the 5 year benchmark rate to qualify the mortgage? Will they use actual payments on unsecured debt or compensate for 3% minimums.
Each one of the above can make the difference of being approved for a mortgage and/or cost you thousands in extra fees down the road. Using our services ensures you receive the best terms and conditions to suit you.
For the best mortgage rates for your home financing Call today
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There are 7 Dominion Lending Centres templates to choose from.
Each one will lead your clients to our award winning informative mortgage website where they will find current rates, webinars, historical data, and will be able to apply for a same day mortgage approval through our secure process
There are generally two ways to get a mortgage in Canada: From a bank or from a licensed mortgage professional.
While a bank only offers the products from their particular institution, licensed mortgage professionals send millions of dollars in mortgage business each year to Canada’s largest banks, credit unions, trust companies, and financial institutions; offering their clients more choice, and access to hundreds of mortgage products! As a result, clients benefit from the trust, confidence, and security of knowing they are getting the best mortgage for their needs.
Whether you’re purchasing a home for the first time, taking out equity from your home for investment or pleasure, or your current mortgage is simply up for renewal, it’s important that you are making an educated buying decision with professional unbiased advice
Choose Barrie’s best mortgage Broker with Barrie’s Best mortgage rates
As you can see from the historical data below, today’s average mortgage rates are lower than they were in the 50s! Although rate isn’t the only important aspect of a mortgage, it’s interesting to see how rates have fluctuated over the past few decades.
1957 6.85% 1958 6.80% 1959 6.98% 1960 7.18% 1961 7.00% 1962 6.97% 1963 6.97% 1964 6.97% 1965 7.02% 1966 7.66% 1967 8.07% 1968 9.06% 1969 9.84% 1970 10.45% 1971 9.43% 1972 9.21% 1973 9.59% 1974 11.24% 1975 11.43% 1976 11.78% 1977 10.36% 1978 10.59% 1979 11.98% 1980 14.32% 1981 18.15% 1982 17.89% 1983 13.29% 1984 13.61% 1985 12.18% 1986 11.22% 1987 11.14% 1988 11.60% 1989 12.05% 1990 13.24% 1991 11.16% 1992 9.52% 1993 8.70% 1994 9.34% 1995 9.22% 1996 7.94% 1997 7.07% 1998 6.90% 1999 7.39% 2000 8.20% 2001 7.18% 2002 6.70% 2003 6.04% 2004 5.80% 2005 5.48% 2006 5.98% 2007 6.36% 2008 6.41% 2009 5.05% 2010 4.82% 2011 4.57% 2012 4.24%
Current Best Rate 3.29% 5 year fixed If you have questions about rates or general mortgage inquiries, answers are just a phone call or email away! www.darick.ca
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Starting in 2010, lenders had to ensure that borrowers getting variable or 1- to 4-year fixed mortgages could afford payments at the 5-year posted rate.
That rule applied to mortgages with less than 20% equity. In 2012, OSFI asked federally regulated lenders to apply the same rule to all variable and 1- to 4-year fixed mortgages, regardless of equity.
But some lenders, which are provincially regulated, were not bound by this guideline.
As a result, some of the lenders today let conventional borrowers qualify for variable-rate mortgages using significantly lower rates.
That makes it easier to get approved when your debt ratio is above average.
How much easier? Consider a qualified borrower making $70,000 a year.
As of today, that person can get a variable-rate mortgage as high as $483,000 at some Lenders. At a bank, he or she would be capped out at roughly $413,000.
For the best mortgage rates in Barrie from Barrie’s Mortgage Broker call us today to get qualified for your new mortgage
According to the Financial Post
Core Inflation Inflation last year averaged 0.9% through November, the slowest since the 2009 recession, falling to as low as 0.4% and never surpassing 1.3%. Core inflation, which excludes eight volatile components and is monitored closely by the bank as a gauge of inflationary pressures, averaged 1.2% last year and never fell below 1%. “If core inflation is becoming unhinged, then you start to be concerned with the risk that the Bank of Canada may have to think a little bit more seriously about rate cuts,” Issa said. If you dont have prime less.4% or better call me. We can save you money on your mortgage.
In other words..for now Stay or go Variable
For the best mortgage rates from Barrie’s mortgage broker call today 705 797 8811