Personalities of Your Mortgage Product 101

Presents

PERSONALITES OF YOUR MORTGAGE PRODUCT - 101

TRANSLATING MORTGAGE INDUSTRY TERMS INTO EVERY DAY LANGUAGE

A little about Geoff Lee…

√ Co founder and Director of the Imani Orphan Care Foundation – www.imaniorphancare.com

√ Over 22 years of real estate experience and investment

√ Ranked amongst the top 3% mortgage brokers in Canada by CMP magazine

√ Finalist in 2014 CMP Canadian Mortgage Awards for Best Customer

Service from an independent office

LET’S RECAP…

CREDIT 101

• What a credit score is…

• All you really need is 680 – 800 to get the best mortgage rate…

• How the credit score is calculated…

• How to fix your credit problems…

LET’S RECAP…

MORTGAGE QUALIFICATION 101

• How to qualify for a mortgage either self-employed or employed…

• Stated Income…

• Gross Debt Service Ratio and Total Debt Service Ratio

• Mortgage Insurance

LET’S RECAP…

TERMS YOU NEED TO KNOW 101

• High Ratio vs Conventional Mortgage…

• LTV, LOC (Secured vs unsecured), Amort, Fixed, VRM, DCR…

• Stated Income (BFS)…

• Rental Income…

• Flexdown…

Fixed and Variable RATES – know the rate!

“Fixed rates are a GIFT”

• 1 year 2.65• 2 year 2.69• 3 year 2.75• 4 year 2.99• 5 year 2.84• 7 year 3.55• 10 year 3.69

• VARIABLE PRIME less .5

Don’t know what to ask???????????????????

• What are the QUESTIONS you need to know to ask???

• The RIGHT questions make all the difference in determining which mortgage product is right for you…..

• Always ask about the terms…

NO FRILLS

FULL FRILLS

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What is the penalty to break my mortgage if I want to Upgrade, Refinance, or Sell?• You want to consider Mortgage Flexibility

NO FRILL says…• 12 month principle & interest

• You may be stuck with the rate the Lender gives you

NOTE!!! 70% of borrowers break or re-negotiate their mortgage BEFORE maturity!!

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What are my Prepayment Privileges?How much extra can you put toward your mortgage principle – monthly/annually?

NO FRILL says…

• 0 – 10% of monthly payment

• No anniversary or lump sum payments

NOTE!!! How much do you really need?• Stats say on 17% make lump sum payments

• 23% make monthly payments, usually no more than 10% should be needed

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Is my mortgage PORTABLE? Can I bring my mortgage with me without a penalty AND keep my interest rate?

NO FRILL says…

• No, you can’t

• Yes, but with restrictions (ie must sell your present home AND buy your new home within 30 days)

NOTE!!! Be aware of Lending area, especially if you are working with a CREDIT UNION.

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Can my mortgage be BLENDED AND EXTENDED? If I am to sell my home…

Can my mortgage be PORTED (carried) over to the new property? Can my RATE be BLENDED?

Can the additional monies I will need to borrow for the purchase be EXTENDED?

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Is my mortgage ASSUMABLE? If I am to sell my home can someone take over the remaining terms of the mortgage?

NO FRILL says…

No, you can’t!

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How long can my AMORTIZATION be? How long will it take to pay off my mortgage at the contract rate?

Impacts debt servicing and monthly payment

NO FRILL says…

Maximum of 25 years….

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Does this product apply to an investment property? NO FRILL says…

NO!

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What will my rate be if I go from a VARIABLE RATE MORTGAGE (VRM) to a FIXED rate? NO FRILL says…

You get the STANDARD RATE…. not the BEST RATE….

In conclusion….

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Once you know the RATE… understand the “long term relationship” you are about to be committed to… Get CLEAR answers on:

1. Penalty to break your mortgage 5. Amortization

2. Prepayment Privileges 6. Conversion

3. Portability 7. Applicable to Investment Property?

4. Assumability

“Too many of us are not living our dreams because we are living in our fears…”

Les Brown

“Lasting Quote….”

Get in touch with us….

www.geoffleemortgage.comTwitter: @geoffleecaLinked In: http://ca.linkedin.com/in/geoffleemortgage/Email: [email protected]: 1.778.552.3489

Thanks so much for attending the GLM Mortgage Group workshop – MORTGAGE QUALIFICATIOM 101.

If you have any questions please call me at 778.552.3489 or email me at [email protected].

“We specialize in getting you the fastest “YES” at the SHARPEST RATE… GUARANTEED!”

- Geoff Lee