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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

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
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
  • Any Questions?
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