Appraisal Risk

Firm Offer ‐ Risk Assessment I have underwritten your mortgage application, and you meet both the debt service and credit guidelines.  If you decide to remove your condition of financing from your offer to purchase, you will have the following risks to consider:   

 If the property's appraised value comes in lower than the purchase price, you must increase your down payment to cover the difference.  The fewer funds you have available as a buffer, the greater the risk that you won't be able to make up the difference.   

 Appraisers rely heavily on recent comparable sales in the immediate area when estimating a property's value. The fewer comparable properties there are, the more subjective the appraiser's job becomes, especially if your subject property is remote, or unique.   

 If you are making a substantial down payment on your property, then the appraisal condition presents only the limited risk that you may be required to pay for high‐ratio loan insurance if the value is adjusted downwards.   

 If you are only making a small down payment with limited additional resources, the risk in waiving your financing condition before the lender has signed off on the appraisal increases as room for adjustment is smaller.   

 There is also the risk that an appraiser flags a specific issue with the property, such as the presence of knob & tube wiring, lnsulbrick, disturbed asbestos, UFFI or other materials the lender deems unacceptable.  In such cases, the lender may still be willing to proceed on the condition that a portion of the mortgage funds be held back until the borrower provides confirmation that issues have been addressed. Once the necessary repairs are made, the lender then releases the held back funds.   While waiving your financing condition before having a fully qualified commitment from your lender is a fairly common practice at the time being for the GTA, you are taking a significant risk when you do this.   The bottom line is; the less financial flexibility you have, the more important the financing condition becomes. 

Lindsay Doke  416 464 6423 

MountainView Mortgage Brokers

Foreign Buyers Banned Toronto Real Estate

 So... Foreign Buyers BANNED

for two years except...

If your kids buys the house for cash...

Nothing changed

https://www.immigration.ca/permanent-residents-international-students-exempt-from-canadas-2-year-foreign-buyer-ban

https://BuyinginToronto.ca

Call David Pylyp 647 218 2414 or book an appointment

Calendly.com/DavidPylyp

Is your Mortgage Renewing Soon?... What else is out there?

These are interesting times we are living in, with a record inflation that has not been this high since August 1991.  Many clients out of fear of the unknown are simply signing their mortgage renewal agreements without looking at what else is out there.  

The Trudeau government provided many people during Covid 19, particularly those who were self employed, with monetary relief so they could stay afloat. It also resulted in them taking on more debt as they were forced to close shop, but still had to maintain payments on their leases, mortgages and other financial obligations tied to their businesses.

 

There is a huge growth in alternative lending in this sector. Having one payment to consolidate all your debts is the credo under how this lending operates. One can argue you are further ahead with a higher mortgage rate with one payment vs  your low rate mortgage at the bank that keeps you with balances on your unsecured debt. This is because your reported net income on your tax return does not debt service at the mortgage stress test. This rate is currently 5.25% as of April 14/2022.  So what good is low rate on your mortgage when you still have unsecured debt at 2 to 3 times higher. 

 

There is a better way. Want to know more...

 

Please connect with me 

https://RenewYourMortgage.ca 

via email at lindsay@mountainviewmortgage.ca or 

by phone/text @ 416 464 6423

Lindsay Doke Mountainview Mortgage,

Mortgage Agent lic M18001723 

*Photo Mirabella  1926 Lake Shore Blvd W. Toronto 

Finance your New Home Purchase Based on Todays Appraisal

 

Hello Everyone,

 

I hope this finds you well.

 

New niche product with one of our B lenders

 

Say your client bought 2 years ago at 800K from a builder and was putting down 20% down for a future 640K mortgage. They had already given 120K to the builder already today.  Today the property is worth over 1 million and is closing in the next 120 days.

 

I can do up to 80% financing providing the client can qualify on the increased mortgage and this way the 120K deposits the client made already can be returned to them  to be used for their own needs to maximize their cash flow.

 

 

Call me if you have any questions or have a client that fits this space.

 

Lindsay

 

Lindsay Doke

Mountainview Mortgage

Mortgage Agent 

License M18001723

 

E    lindsay@mountainviewmortgage.ca

C    416 464 6423

W   http://lindsaydoke.ca

Financial Literacy Lessons McGill University

So many people lack basic financial understanding of Mortgages, Debt, Interest and Investments

This online course is timely for Beginners and Mature Investors to learn and make better choices..

McGill Personal Finance Essentials is a free, online personal finance course offered in English and French, four times per year. Taught by professors from McGill University’s Desautels Faculty of Management, the course is open to everyone!
From budgeting to borrowing, real estate and beyond, invest a few hours in this free, online course1 and you’ll gain the knowledge and confidence to make a lifetime of smart financial decisions.
Finish all course modules to receive a McGill Personal Finance Essentials attestation of completion2.

https://www.mcgill.ca/desautels/industry/community-engagement/mcgill-personal-finance-essentials

Help Educate yourself to make better informed decisions.

http://RenewYourMortgage.ca 

Docs you need to Renew Your Mortgage

Get these documents together before you start the refinance process.  Identification 0   Photo ID of two pieces plus / Passport if available.  Citizenship Docs not required. 

The stress test does apply when you change lenders but in today's rate environment that should not slow you down. 

Think back to your original mortgage and all of the documents that you had to gather. For a refinance, the documentation for your refinance is pretty much the same. The overall purpose is to prove different aspects of your finances to your lender.

All lenders have slightly different requirements, but you can bet that they'll probably ask for documents in the following seven categories:

1) Proof of income: Proving your income generally requires the following documents.

The last 30 days of pay stubs

Your current tax returns

Tax forms like T4's and Notice of Assessment ( NOA ) 

2) Insurance: You'll probably need to produce documentation for two kinds of insurance:

Homeowners insurance, to verify that you have enough current coverage for your home.

Title insurance, to help your lender to check the taxes, the names on the title, and the legal description of the property.

3) Credit information: You'll need a recent credit score and credit reports.

4) Monthly debt load: While your lender will be able to see your debts during a credit check, you will still have to account for those debts. That means pulling together documents for things like:

Your current mortgage

Home equity loans

Credit cards

Auto loans / Lease Details

Student loans

5) Total assets: You need to document all of your financial assets other than your home. This means documenting things like:

Savings accounts

Stocks

Bonds

Mutual funds

CDs

Retirement accounts like RRSP's and TSFA's 

Other real estate

6) Appraisal: Your lender will probably also ask for a current appraisal of the house.

7) Loan to Value appraisal: The lender will usually also ask for some kind of appraisal (perhaps informal) of how much your house is worth compared to what you owe on the existing loan.

Once you've got all of this information together, it should be smooth sailing, right? In a perfect world, yes. Expect plenty of delays regardless of how well organized things are on your end. Not that this is a reason not to do a refinance-but knowing what to expect can make the process seem a little less frustrating.


Further information or Direct Answers are available from Veronica Thompson 647 628 7007 or VThompson@MortgageAlliance.com

Call today!

Included Child Benefit to Qualify

Slow on a few payments
Stressed at the debt?

In my new role I help clients in  all situations.

In this case my clients had a young family with 4 children, three under 12; who needed to re-finance their mortgage.

The credit score was low, so a B lender was chosen. Unsecured debt was at the max with some slow recent payments.

I was able to use a secondary child tax benefit allowance as additional income to help the clients qualify for a one year term.

I am helping them restore their credit score so I can renew them back to a preferred lender in 1 year.  I saved them $1,200 a month in payments by consolidating everything into a single mortgage payment.

The best part.. in their own words. Lindsay we were at the end of our rope, until you were able to help us and keep us in the family home we love.

Let me make a difference for your clients.

Lindsay

Lindsay Doke

Mountainview Mortgage

Mortgage Agent 

License M18001723

E    lindsay@mountainviewmortgage.ca

C    416 464 6423

Creative Solutions for Creative Times