Imagine your home is not your castle, you can’t invite people over and it’s absolutely depressing. Lee-Ann and Darin from Cambridge came to us after their lawyer put a halt to a private mortgage they had arranged. The client’s house was under construction with major renovations so when their bank turned them down for a mortgage they turned to a mortgage broker. But when their lawyer reviewed the mortgage broker deal he recommended that they shouldn’t proceed because the new private mortgage also encumbered their mother’s home. The lawyer called us to help. After reviewing we were able to agree with the lawyer that the mother’s house shouldn’t be part of the collateral because even in a state of disrepair the Cambridge couple had enough equity. So we went on and arranged a private 1st mortgage with one of our top private lenders and they were able to get enough funds to complete the house over the past year. We also advised Lee-Ann who had no credit to establish credit with a credit card and a small loan. She was a self-employed landscaper who like a lot of self employeds was writing her income down too low. With the recent federal government regulations, it is even more citical for homeowners who want new mortgages to tell their accountants not to write their income to ridiculously low levels just to avoid paying tax. This can mean the difference between getting a prime mortgage at the best rate and find yourself paying mortgage insurance fees or worse yet getting higher rates.
Lee-Ann heeded our advice and had her bottom line on her tax return increased. This year when we put together her new application she had a good credit score and a decent income we could use. With her house now mostly finished(what a difference 50,000 can make) her home appraised for almost double what it did a year ago. The Cambridge couple are now saying good-bye and thank-you to the private lender who gave them the much needed funds to complete their home and hello to a great 5 year fixed rate at 3.09% we have now arranged for them.
Lee-Ann said for 15 years she would come home dreading seeing the walls down to the studs, no flooring, not a proper bathroom. Now she finally has a stress free life with a beautifu home she is proud of to invite friends and family to come in and see.