Many people are having trouble getting the mortgage they want these days. Working with a Licensed Mortgage Advisor offers you not only access to a variety of products, but also a variety of experience-based solutions.
Here are a couple strategies we have used to get home buyers qualified, who have had difficulty elsewhere:
CREATE THEIR DOWNPAYMENT
Take out an RRSP loan with a lender who has the right guidelines. The client utilizes a payment on the RRSP loan that fits into their long-term debt service ratios to qualify for a house. After 90 days the clients use the Home Buyers plan to withdraw the down payment. The useful part of our scenario is that our lender does not require the loan to be paid off to use the RRSP money for the down payment. Most RRSP lenders will demand that the withdrawn funds are used to pay the balance of the RRSP loan off in full. If they qualify, ( in RRSP room and GDS / TDS ratios,) up to $25,000 in down payment could be available.
RE-WRITE A CAR LOAN TO REDUCE THE MONTHLY PAYMENT
We have a bank lender who rewrites car loans with a longer term creating a lower monthly payment. Lower car payments can lead to a higher mortgage. Recently, we had clients with a newer vehicle with a large payment. With the new lower payment that we organized, the clients then were able to obtain a $70,000 higher mortgage. They were very happy that they were now able to purchase the house they really wanted NOT the house that the bank said they should be purchasing.
If you think you can benefit from these strategies or would like to know about other solutions, please give me a call.