Mortgage symposium
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MORTGAGE SYMPOSIUM. June 30, 2009 ECCB Headquarters @ 5.30 p.m. MEETING YOUR BANKER PERSONAL APPLICATION. Latest Pay Slip/Job Letter 2 Pieces of Picture identification Proof of deposits held-Bank book/Statements Information on present borrowings Copy of title document Approved Plans

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MORTGAGE SYMPOSIUM

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Mortgage symposium

MORTGAGE SYMPOSIUM

June 30, 2009

ECCB Headquarters

@ 5.30 p.m.


Meeting your banker personal application

MEETING YOUR BANKERPERSONAL APPLICATION

  • Latest Pay Slip/Job Letter

  • 2 Pieces of Picture identification

  • Proof of deposits held-Bank book/Statements

  • Information on present borrowings

  • Copy of title document

  • Approved Plans

  • Recent estimates dated & Signed by contractor

  • Purchase Agreement (Property Purchase)


Meeting your banker investor

MEETING YOUR BANKERINVESTOR

  • Proposal Requirements:

  • Total cost of project: Does it include furniture/appliances?

  • Cash Input vs amount to be borrowed

  • Monthly repayment

  • Cash Flow from rental taking into consideration:

  • Non rental of some units

  • Repairs/Maintenance

  • Utilities-Electricity, water, cable, internet

  • Insurance

  • Taxes


Usd mortgages

USD MORTGAGES

  • RBC launched this product in March 2009

  • Loans in excess of USD150,000

  • 70% financing available for amounts under $500,000

  • 60% -$501,000- $750,000.00

  • 55% $750,001 - $1,000,000.00

  • 50% over $1,000,000.00


Equity calculations

Equity Calculations

  • Example 1

  • Land Cost/Value $ 50,000

  • Estimates $300,000

  • Total Project cost $ 350,000

  • 10% DEPOSIT = $35,000.00

  • You can borrow up to $300,000 as the cost/value of the land covers your down payment

  • Value of land is utilized if purchased over 5 years ago


Equity calculations1

Equity Calculations

  • Example 2

  • Land price/value $ 20,000

  • Estimates $300,000

  • Total Project cost $320,000

  • 10% DOWN PAYMENT = $32,000

  • Client will have to inject $12,000 in cash as bank will only lend up to $288,000

  • Value of land will be utilized if land purchased 5years previously


Debt service calculations annual figures

Debt Service CalculationsAnnual Figures


Mortgage indemnity insurance

Mortgage Indemnity Insurance

  • The bank reduced the amount of down payment required by clients from 20% to 10%, however we still have to maintain the 20% equity requirement. This is covered by Mortgage Indemnity insurance on the difference between the clients minimum 10% down payment and the banks requirement. It is calculated as follows:


Mortgage indemnity

Mortgage Indemnity

  • Loan proposal of $300,000.00

  • Project Cost $350,000

  • Required equity: $350,000 x 20% = $70,000

  • Client has an input of $50,000.00

  • They have 2 options inject an additional $20,000.00 or pay a one time fee calculated as follows:

  • $70,000 - $50,000 = $20,000 x 5.75% =$1,150.00


Legal fees stamp duties

Legal Fees/Stamp Duties

  • Loan amount of $300,000.00

  • If title is held by Certificate of Title

  • We hold title by way of equitable Mortgage

  • Fees/Duties = $4,308.16

  • If title is held by Deed

  • We hold title by way of legal mortgage

  • Fees/Duties = $6,632.20


Total fees

TOTAL FEES

Negotiation Fee – 1% of loan $3,000.00

Stamp Duty on Promissory Note 300.00

*Valuation Report (.0025 x value) 875.00

Mortgage Indemnity 1,150.00

Legal Fees -COT 4, 308.16

Site visits 1,600.00

GRAND TOTAL $11,233.16

*Additional fees include site visits


Mortgage symposium1

Mortgage Symposium

  • Thank you for your attention

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