Investing in real estate can be highly rewarding. Whether you choose to hold a rental property for passive income or flip houses for an active income, this form of investment is worthwhile if you have the time, capital and expertise to make it work. When investing in real estate it is important to have a team in place that will help ensure you are investing in quality deals that you will be successful with. Your team may consist of a realtor who understands the marketability of a property, connecting with a wholesaler who will find you a deal on a property and set you up for success, trades people who can execute the renovation plan and a financing partner such as Calvert Home Mortgage; offering a unique flip financing product, expertise and tools such as our Flip Analyzer to assist in funding successful flip projects. We will focus on the value of using a Wholesaler in this article. Continue reading Investing in Real Estate with a Wholesaler
A Mortgage Broker approached Calvert Home Mortgage requesting a Second Mortgage for his/her mother (“client”) for the purpose of consolidating debt. The client required the mortgage to pay off her high credit balances which were impacting her Credit/Beacon Score. Her credit was good, but Beacon was low due to high balances compared to credit limits. She made all of her payments over the last 2 years and had all “R1’s” on her Credit Bureau. When the file was initially presented to Calvert, the client’s Credit Score was 567. Continue reading Drastic Credit Score Increase After Consolidating Debt
Collateral mortgages are pushed heavily by the banks because they benefit the banks. What’s wrong with them from a consumer standpoint? Nothing, provided you never need to borrow money in a second mortgage position, if you never get into trouble with your payments, or with any of your debts with that bank. Collateral mortgages tie you to your bank Continue reading Breaking Bad With Collateral Mortgages
The borrower was a middle-aged gentleman who owned a condo in downtown Calgary with a small first mortgage through a major bank. He had become unemployed due to the poor economy and was receiving Alberta Works Social Assistance, only a fraction of what he was earning while working. He was living off minimal income, was relying on credit, struggled with payments and depleted his savings.
The private mortgage market in Canada has been consistently growing over the last 10 years. Reasons for the growth include stricter regulations for institutional lenders and increase in the amount of capital available to private mortgage lenders as a result of underperforming bonds and other traditional fixed-income investments, which has motivated the investment community to seek out higher return products. Another factor is increased regulation of how private mortgage lenders raise capital (except for BC) which has consolidated smaller operators who are challenged to meet regulatory requirements.
Substantiating how much the industry has grown is a challenge, but, as an example, in 2010 there were approximately four private mortgage lenders based in the Western Provinces who had a portfolio of loans exceeding $100 million and today there are over 12.
As mortgage professionals, there is a real opportunity to embrace private lending in order to service more clients and in turn grow your business. Part of embracing this market is educating yourself on its nuances. In this article, I will discuss how private mortgage lenders make underwriting decisions.
The new Mortgage Rules are making it harder for you to get your clients a mortgage. As a result, more and more mortgage professionals are using private mortgage lenders to help their clients achieve their goals. To best help your clients, it is important to understand how private mortgage lenders operate, how the pricing works and the associated costs to ensure what you promise your customers come to fruition, with no surprises.
Who are Private lenders?
In my role as an Underwriter at Calvert, I have the opportunity to work with mortgage brokers and fund deals in less than 24 hours from the initial phone call.
After a brief conversation at noon one day, the Broker quickly provided the entire document package, and I was able to hand the client a cheque at around 11 am the next day.
As a real estate professional, homeowner or home buyer, it’s important to understand the difference between the ‘Tax Value’ (usually referred to as ‘Tax Assessed Value or Assessed Value’) and the ‘Appraised Value’ when trying to determine the Fair Market Value of a property. Continue reading Appraisal vs. Assessment