Category Archives: Creative Financing

Interest and payment-free down payment for Toronto Condos

Interest and payment-free down payment for Toronto Condos are here now for first time home buyers. “This is incredible opportunity for those who wants to have a head start to get into home ownership”says Navtaj Chandhoke founder of Professional real estate investors group (PREIG) Canada.

Situated on the banks of the Humber River on Wilby Crescent, this condo offers uninterrupted southwest views of the river and is mere steps from the Weston GO station and the UP Express, which will get you to Union Station in 15 minutes! Your new home will also be conveniently close to the Crosstown LRT, once completed.

Interest and payment-free down payment for Toronto Condos

At once a historic and up-and-coming community, Weston is on the verge of revitalization with arts groups such as Artscape and Urban Arts calling the neighbourhood home, and established community events like the Weston Farmer’s Market and Santa Claus parade. The Humber is next to Weston Lions Park, a 7.4-hectare park overlooking the river that boasts two ball diamonds, a tennis club, skate park, basketball court, splash pad, playground and outdoor pool. An innovative 2.3-acre rail deck park is expected to open soon nearby.

Each suite includes a locker and three standard appliances (fridge, stove with hood fan, dishwasher). The Humber will be built by Deltera and prices start at $350,500. Occupancy is expected to begin spring 2021.

Interest and payment-free down payment for Toronto Condos AMENITIES and FEATURES INCLUDE:

  • This is Toronto’s first Smoke Less condo! Only vaping/e-cigarettes are allowed in suites.
  • A large variety of family-sized units
  • 35 suite styles to choose from
  • Rooftop patio, underground parking and enhanced security features
  • End users only (this is not an investment project.)
  • Uninterrupted southwest views of the river
  • Mere steps from the Weston GO and UP Express (15 minutes from Weston to Union Station)
  • A community boasting the city’s oldest farmers’ market, it’s own Santa Claus parade and a new Artscape hub
  • Next to waterfront parks and recreation facilities, like Weston Lions Park

Plus, they’ll lend you 10 to 15% of the purchase price towards your down payment with the innovative Options Down Payment Loan. With the the Down Payment Loan, monthly carrying costs start at $1953 (with a 25-year mortgage). This loan is payment free, will save you thousands, and can help you own your first home, or simply a new home, sooner than you ever imagined was possible.

More information

info@optionsforhomes.ca
+1 416.867.1501
Suite 310,
468 Queen Street East
Toronto, ON M5A 1T7

There are plenty of forgivable Canadian real estate grants available for first time home buyers to existing home owners.

Interest and payment-free down payment for Toronto Condos

Canadian real estate investors can also take full advantage by creating affordable rental units. Directory of current forgivable, interest free real estate grants is available in a very limited quantity.

Changes to Ontario Syndicated Mortgages

Changes to Ontario syndicated Mortgages
transactions take effect July 1, 2018. Professional real estate investors shall become aware of these changes to Ontario syndicated mortgages.

What is a Syndicated Mortgage

A syndicated mortgage is where several
investors combine funds together to
create one financial instrument:
a mortgage. When you invest in a
syndicated mortgage, you are pooling
your money with others to create a
mortgage that will be registered
and secured directly with the land
or building that’s associated with
that mortgage.

Changes to Ontario syndicated Mortgages
Changes to Ontario syndicated Mortgages

 

 

 

 

 

 

 

 

 

The Government of Ontario has made regulatory amendments to O. Regulation 188/08 Mortgage Brokerages Standards of Practice[New Window] under the Mortgage Brokerages, Lenders and Administrators Act, 2006 (MBLAA)[New Window] that affect non-qualified syndicated mortgages.

Changes to Ontario Syndicated Mortgages

Under the MBLAA, mortgage brokerages are already required to take reasonable steps to ensure that a mortgage or an investment in a mortgage is suitable for a client (i.e., borrower, lender or investor) based on the needs and circumstances of the client. Brokerages are also required to provide clients with certain disclosures, including written disclosure of the material risks of a mortgage or investment in a mortgage.

As of July 1, 2018, mortgage brokerages that deal with non-qualified syndicated mortgage transactions will have to comply with expanded requirements.

Developers and builders use syndicated mortgages
as part of their financing to take a project
from conception to completion—and this is
where the risk lies.

Since banks are not
too keen on funding a building project
that hasn’t even started, developers
will rely on syndicated mortgages to
cover soft costs: consultant fees,
zoning permits, architecture costs
and even marketing and sales expenses.

All this is to say that the mortgage
you’ve provided is funding the initial
stages of a project not the actual
building of the project.

 What is a non-qualified syndicated mortgage?

A non-qualified syndicated mortgage is generally a more complex, higher risk product that may not be suitable for the average investor. Non-qualified syndicated mortgages are all syndicated mortgages that do not meet the regulatory definition of a qualified syndicated mortgage.

What is a qualified syndicated mortgage?

As defined in the amended regulation [New Window], as of July 1, 2018, a qualified syndicated mortgage is a syndicated mortgage that meets all of the following criteria:

It is negotiated or arranged through a mortgage brokerage.
It secures a debt obligation on property that,

is used primarily for residential purposes,
includes no more than a total of four units, and
if used for both commercial and residential purposes, includes no more than one unit that is used for commercial purposes.

At the time the syndicated mortgage is arranged, the amount of the debt it secures, together with all other debt secured by mortgages on the property that have priority over, or the same priority as, the syndicated mortgage, does not exceed 90 per cent of the fair market value of the property relating to the mortgage, excluding any value that may be attributed to proposed or pending development of the property.

It is limited to one debt obligation whose term is the same as the term of the syndicated mortgage.

The rate of interest payable under it is equal to the rate of interest payable under the debt obligation.

(3) A syndicated mortgage that secures a debt obligation incurred for the construction or development of property is not a qualified syndicated mortgage.

What is changing?

As of July 1, 2018, mortgage brokerages that deal with non-qualified syndicated mortgage transactions will be required to:

Collect and document specific information related to a potential investor’s or lender’s financial circumstances, needs and risk tolerance using a new FSCO form.

Undertake and document a suitability assessment, using specific criteria, for each potential investor or lender using a new FSCO form.

Collect and document expanded disclosure information using a new FSCO form. This includes information regarding the property appraisal and, in the case where the borrower is not an individual, the borrower’s financial statements.

Observe a $60,000 limit on non-qualified syndicated mortgage investments over a 12-month period for investors or lenders who are not part of the ‘designated’ class of investors or lenders. The regulation defines the designated class of investors or lenders as those that have already met higher income and asset tests.

Report written complaints received by the brokerage related to non-qualified syndicated mortgages to FSCO’s Superintendent of Financial Services within 10 business days.

Top 10 tips to get your Mortgage approved every time in Canada

Top 10 tips to get your mortgage approved every time in Canada requires preparation and due diligence.

Canadian professional real estate investors understand the challenge to get a mortgage with favorable terms.

There are lot of hidden costs built in from all major Canadian banks, lenders and private hard money lenders.

Here are Top 10 tips to get your mortgage approved every time in Canada,

tricks, secrets and strategies, Canadian investors and home owners can use.

1. Have your documents ready to go – if you’re not sure what you’ll need, find out first and get a head start on any paperwork you’re missing.

2. Get a mortgage pre-approval ahead of time – if you are unsure as to whether you will qualify for a mortgage or what you have to do before even qualifying for a mortgage have a lender take a preliminary look at your application so there are no disappointments when you are ready to buy.

3. Have a good credit score – the higher the score the better.Minimum credit of 750 is the best.You can boost and fix your credit by yourself.Strategic Credit Repair Guide from http://www.GovernmentGrantsCanada.ca

4. Don’t borrow your down payment if you don’t have to – the more you have from your own resources, the more appealing you look to a lender.Proof of funds make it much easier than otherwise.

5. Have minimal debt – the less, the better.

6. Buy within your means – you need to qualify for what you buy, ensure it’s affordable.

7. Have good job tenure – the longer you’ve been with the same employer, the better it looks.

8. Provide a large down payment – the more the better because it means less risk for the lender.

9. Sell your existing property first – if you don’t sell, you must qualify to carry both.

10. Have good credit repayment history – a good credit score doesn’t mean much if there’s not enough history of debt repayment.

11. Have positive net worth – assets look good to a lender.

12. Don’t rush – sometimes you can’t rush a good thing.

13. Shop around for the best rate before you buy – prevent delays when it comes time to buy. Deal with experienced Canadian mortgage broker with proven record.

14. Do your research first – be prepared to avoid surprises.

15. Don’t change jobs at the last minute – your lender will need the new details and probation can cause issues.

16. Avoid last-minute large purchases – material changes to your application, including debts, can alter your approval status.

17. Consult a professional – use their experience to your advantage.

18. Augment your savings account – more money is always a good thing, right?

19. Understand what a co-signer is – just in case it’s needed, you’ll be ready.

20. Ask for exceptions – you don’t get what you don’t ask for.

21. Be prepared to negotiate – if it’s very important to you, be prepared to discuss it.

22. Don’t take no for an answer – if you don’t succeed on the first try, try and try again.

23. Have a back-up plan – if it doesn’t work out one way, prepare for a plan B.

24. Fill out your paperwork accurately the first time – save time and energy by doing it right the first time. Ask questions if you’re unsure how.

25. Be honest – mortgage approvals can be withdrawn if a falsification is discovered.

26. Know your income if you’re self-employed – it needs to be clearly presented to a lender, so make sure you’re on top of it.

27. Be open to alternatives – there may be other options.

28. Budget for closing costs – costs can vary, be prepared.

29. Pay attention to detail – sometimes it’s the small things that can make a big difference, read the fine print.

30. It’s okay to wait – an approval may not be possible right now, that doesn’t mean it’s never going to happen.

31.Always obtain AACI appraisal in Canada.

32. Get your own credit report to make sure it is clean and there are no errors.

33 Do not allow everyone to check your credit score.

34 Never use more than 60% of available credit.

35.Use owner financing or vendor take mortgages.

36.Be aware of zero percent mortgages from private, government and charities.

37.Ask about penalties before signing up any documents.

38. Be aware of Interest rate differential (IRD)

39. Ask the lender to pay your legal fee.Nothing gains unless you ask for it.

40 Do not renew with the same lender, shop around for better rates and terms.

While the above tips might make getting a mortgage approval a bit more likely, working with an experienced mortgage professional who can successfully structure your application for acceptance by a lender is the quickest route to home ownership.

Once approved, make sure you’re comfortable with the commitment you’re about to make.

Ensure the new mortgage supports your lifestyle by being affordable and aligns with your financial goals.

Please feel free to suggest to add more tips to Top 10 tips to get your mortgage approved every time in Canada.

DISCLAIMER

We believe the information contained in this article to be accurate. It is presented with the understanding that we are not engaged in rendering legal, accounting, or investment advice. When professional assistance is required, utilize the services of a licensed real estate broker, lawyer, accountant, or other consultant as may be required.

Speaking Engagements
Navtaj Chandhoke can be your next key note speaker for real estate/sales/marketing office meeting or Canadian real estate investment conventions, expos or trade shows. Please contact us for topics and availability.
Please contact us directly at Pam@WorldWealthBuilders.com or 647-393-6100 to set up a session at your meeting or convention.

Missing a mortgage payment in Canada

Missing a Mortgage Payment in Canada

missing-a-mortgage-payment-in-canada

Missing a mortgage payment in Canada is a serious matter. The reason a Canadian homeowner goes into foreclosure or power of sale is important for all to understand. As a Canadian homeowner one can be prepared for such a situation as the aforementioned, and as a Canadian professional real estate investor, one can be informed as to what causes foreclosure or power of sale and how to be of service. Death, job loss, medical expenses, and divorce are a few of the most common reasons Canadians face foreclose or power of sale on a home. These factors are real and an everyday part of society.

Falling behind on your payments can trigger power of sale process in Ontario. According to the Ontario Mortgage act 'Where a mortgage by its terms confers a power of sale upon a certain default, notice of exercising the power of sale shall not be given until the default has continued for at least fifteen days, and the sale shall not be made for at least thirty-five days after the notice has been given'  R.S.O. 1990, c. M.40, s. 32.

Missing a mortgage payment in Canada and cash flow issues going on and Canadian home owners try to juggle and decide which debts to repay. It’s tough but can be worked out.

Canadian Homes: Foreclosure or Power of Sale?

Both circumstances are a legal process designed to provide the Canadian lender an option to sell the property in the event the Canadian homeowner defaults or misses several payments.

Foreclosures in Canada involve the judiciary system, making it a much slower process which can take up to 6-10 months to resolve. We see foreclosures most commonly in Nova Scotia, Saskatchewan, Manitoba, Quebec, Alberta, and British Columbia.

Power of Sale, on the other hand, is much quicker. In some cases the power of sale can happen within weeks, but you will generally have a 35 day redemption period. This means you will have 35 days after being served notice to pay all your debts (including incurred fees) and get thing back on track. Power of Sale is currently being seen frequently in Ontario, Newfoundland and Labrador, New Brunswick, and Prince Edward Island.

What can you do about missing a mortgage payment?

Option 1: Contact your lender or bank as soon as possible1

Canadian lenders would always prefer not to go through the foreclosure or power of sale process. Their goal is to safeguard their investment and assist Canadian homeowners to find a reasonable and affordable solution.

Canadian homeowners tend to be very reluctant to contact their lenders out of fear and uncertainty.

With the majority of Canadian lenders, being forced out of the home happens only when all efforts and options have been fully explored.

The Canadian mortgage lenders may be able to offer you following four options

  • Change amortization to lower monthly payments
     
  • Switching from a variable rate to a fixed mortgage to provide a consistent payment plan you can budget for without fear of any future interest rate increase
     
  • Refinancing or second mortgage
     
  • There may be an option to add missed payments to the back of your current mortgage

There is limited action the Canadian mortgage lender or bank will take in the early days besides calling you and remind you to pay in time.

Option 2: Ignore and hope it will all will disappear3

Ignoring your oustanding debt will certaintly draw the attention of Canadian lenders and banks. In the long run, cooperation works much better and saves you the cost and hassle for all parties involved.

Option 3: Consolidate all of your debts

The cheapest way to rent or borrow money is with your first mortgage on a principal residence in Canada. Before you stop paying the unsecured debt to make your payments more affordable, make sure you seek out professional advice in order to plan your financing.

Finding a solution to deal with any other debts i.e. credit cards, lines of credit, consolidate loans etc. is all the help people need to obtain a positive cash flow each month and make paying down their debts significantly easier.

One of the key things to look at if you are about to miss a mortgage payment is whether you can afford the house you live in, or whether you’re over-extended on your debt.

If you decide your house is unaffordable then there are essentially two options.

  • Obviously if there is equity in the house, selling the house is the best option.
     
  • If you are in a negative equity situation then this needs to be carefully planned and professional advice is required.
     

4Option 4: Make payments first rather than unsecured debt

The general rule if you want to keep your home is, your mortgage must be the top priority over all of your other debts. You will have many more options to deal with unsecured debt vs. secured debt.