23 Aug



Posted by: Tracy Luciani Price

The need for private money has never been so great in our community.   We have been helping hundreds of local people get back on their feet over the years.  These are deserving homeowners with issues that cannot be solved by a bank mortgage and caught in circumstances that can only be solved with a cash infusion with private money.  We listen to their story (everyone has one) and come up with creative solutions.  With the new government regulations, many people do not qualify due to income even though they can easily afford payments.  If credit has slipped even a little bit, these homeowners fall through the cracks.  So our innovative solutions are short term usually a year or two which help homeowners get back on track. The new government B20 regulations have in addition to making it more difficult to qualify, effectively allow Canadians to qualify for 25% less than before, have also made it impossible even with good credit and income for many to qualify for any refinances.

For private investors, it means a return on these private mortgages of between 6 to 14%.  Our investors can use cash in the bank, their RRSP’s or even their tax free savings accounts.

With disclosure of the application, credit bureau, appraisal and most importantly the exit strategy, private lenders know and understand the deal.

As of late, we helped a client who hadn’t paid income taxes for 10 years and there was a lien against their property by CRA.   We arranged a 2nd mortgage for $50,000 , interest only with payments of 500 dollars.  With the CRA lien discharged, we will be able to refinance these clients into a prime bank mortgage in a year.

We had a client recently, who went in firm without conditions on a new house.  When her current home did not sell by the approaching deadline of the purchase, we arranged a private 1st mortgage on the new one without payments until her home is sold.

Deep in debt after being off work due to cancer treatments, we arranged a private mortgage after clients received a Power of Sale Notice for missing a few mortgage payments.

So right now, we are looking for local people who are interested in helping out other local people keep their homes, pay off collections/writs/liens/property tax or other tax arrears.

Private mortgages are secured by the property and a lawyer represents the lender in the transaction.  We are pleased to say in the hundreds of transactions we have brokered over the years, only one resulted in the sale of the property after exhausting every possible avenue.

It’s a win win situation for all involved.  Homeowners who have issues are saved by our solution and the private lender makes a very good return on their money.

If you are interested in hearing more about becoming a private investor or if you have circumstances where we can help, please don’t hesitate to give us a call.

2 Aug



Posted by: Tracy Luciani Price

Often new clients call us and ask. “What is your best rate?”

A few years ago, this was a pretty straight forward question. But since the government has changed the mortgage rules, the best rate offered by our 95 different lenders is now a very complicated question. Best rate is now limited to high ratio purchases or people buying homes for less than 20% down. This is confusing for most clients. You mean ,if I put less money down, I get a better rate. Yes, that is correct. These mortgages are insured through CMCH, Genworth or Canada Guaranty so there is a premium paid by the borrower and added to the mortgage amount for receiving this fantastic rate.

So, any switches or transfers also qualify for best fixed and variable rates. So that is essentially waiting until your maturity or it can be done before with penalty for existing amount of the mortgage.

Now refinances have different rates attached to them. If you had an insured mortgage on your last renewal or purchased prior to November 2016 you will qualify for rock bottom rates. That’s an if, you have a beacon score about 700. More and more lenders are wanting pristine credit for any type of mortgage transaction. So, guard your credit carefully by keeping balances and making all payments time. Now most lenders are charging a slightly higher rate for a 30 year amortization.

We always say beyond rate, there is always the fine print. Banks especially are bad for not disclosing the bad and the ugly. Onerous penalties come with fixed rates with major banks. They earn 6 billion dollars every quarter on mortgage penalties alone. As well, there are products out there that give a better rate but you need to sell or refinance with that lender and we are not a fan of products that restrict clients. And speaking of restrictive watch those collateral mortgages many banks where all unsecured debt becomes secure in the far reaching parameters of the mortgage charge.

No matter what, we are transparent with our rates and terms. They are available and updated daily on our website at Priceteammortgages.ca. You can even sign up to get them weekly if you want.