April Mortgage Case Studies

Private Mortgage for Property Next to Gas Station

We all know that getting a mortgage on a property close to a gas station can be tough. How about one that’s right adjacent a gas station? That’s why you work with a skilled mortgage agent, because we give you access to multiple solutions for your need and increase your chances of getting approved.

One of my clients has invested in an older bungalow in Markham. The property is built on a large plot and is hence perfect for reconstruction. He purchased the property in 2017 and got himself a private mortgage as he couldn’t qualify with his NOA income and not many A lenders will lend on such a property. His lender didn’t offer any renewal at the end of the term and that’s when he approached me to help him refinance his mortgage.

I had to shop around with numerous lenders as not many of them were interested in investing in a property next to a gas station. After much effort, though, I got him an approval from one of my lenders. However, when I visited the property I realized that the property was in a bad shape. I connected the borrower with one of my known contractors to help my client get the property in livable condition. Once the renovation was completed, we ordered an appraisal. The property appraised at the desired amount, and my borrower not only managed to pay off his previous lender but also took out money to pay off some of his other high interest debts.

I take pride in being a full-service mortgage agent, offering a turnkey solution to my clients – from start to finish. This mortgage was just a case in point.

Self-employed Client with Cash Income

A mechanic in Markham needed my help to get a mortgage for an investment property that he had purchased in late 2018. The deal was to close in April 2019. Like any other self employed professional, the income that he declared in his tax returns didn’t fairly represent his actual income potential. It wasn’t sufficient to carry the mortgage on his two properties (primary residence and the investment property that he purchased), especially with the new stress test.

The simple solution to the aforementioned problem was to work with a B lender who will allow him to state his income. In this case, my client was required to produce 6 months of his business bank statements. The gross income, as derived from these bank statements, was then annualized. Finally, the client declared a fair percentage to be deducted from that income for business expenses.

Where this deal got more challenging was in the fact that the mechanic had extensive cash income. His bank statements would frequently show large cash deposits. This was the amount that the mechanic would deposit after he had collected a certain amount of cash. However, the underwriter needed proof. I worked with my client to look at all invoices for a couple of months where there were large cash deposits. We confirmed that the invoices for those months matched with the cash deposited in the bank account.

This explanation helped us get the deal done. The mortgage is closing next week.

Mortgage with Overseas Downpayment

One of my clients (and newcomer to Canada) was looking for a mortgage to help him purchase his first property in the country. He landed in Canada in June 2017 as a work permit holder after having received a transfer from the company where he worked. His work permit was converted into a Canadian Permanent Residence in 2018. My lenders’ New to Canada program was best suited for the client’s requirement.

There were a couple of obstacles that we had to tackle, though. Firstly, he had changed his job in February 2019 and had only been working at the new company for a month. I solved that problem by providing the lender with my client’s previous job letter and his 2018 T4. Plus, the Letter of Employment from the new company confirmed that this position was permanent (with no probation) and that further helped our case.

The second obstacle was that around 70% of the downpayment (over $100,000) was being transferred from overseas. My client had sold a property in his home country, and he was using those funds as downpayment for his Canadian property. I submitted his Sale agreement for the property that he sold and 3 months of his overseas bank statements to confirm that the downpayment amount was not borrowed. I also provided proof for the wire-transfer of the money to his Canadian bank account, and that sufficed in helping us get a commitment.

The deal is closing in early May and my client’s family can’t wait to get into their new home.

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