issue 8
BOOM
Magazine b e s t
o f
o u r
m a r k e t
contents
08 12 16 20 24 28
Think Outside the Box: Creative Financing Solutions
Financing your real estate investment is one of the more challenging parts of property investing. Did you know you have more options than you think? These 8 creative financing solutions can help you buy the income property you want NOW.
Kosi Stobbs and the Learning Curve
This issue’s featured investor is Kosi Stobbs. In the last 9 years, he went from owning 1 property to 19 with an investment portfolio worth $3.6 mil. In this issue’s Investor Spotlight, Kosi shares his story on how real estate changed his life while he provides some insights on what helped him along the way.
Words to Watch Out for as a Real Estate Investor
In real estate investing, there are words in the industry that can evoke mentalities that can hold you back from being a successful investor. It’s important to understand that though real estate investing is an easy way to build your wealth, it doesn’t just fall into your lap. Also know when to ask for help and set reasonable goals for yourself.
Baby Boomers and the Switch to Multi family Living It’s no secret that baby boomers have a huge effect on the Canadian housing market. By 2036, seniors are predicted to represent about a quarter (24%) of the total population in Canada, and they will continue to drive housing demand as they have done so in the past. As of this year, baby boomers are at an age where they are noticeably making the move from single-family living to multi-family.
Essential Steps for Rookie Home Buye The average person can own a home, but turning the decision to do so into a tangible purchase entails a process that most buyers require some support and guidance through. You have to take an active approach, from the first step to your final goal: find the right house at the right price, and buy it.
The Mortgage Industry Tightening Up on Stated Income Programs
Right now, there is a lot of confusion in the mortgage industry with the current states of both the US and European economies combined with talk of new government mortgage policy changes this coming spring. The industry is now in risk minimization mode and it ultimately is having a big effect on Stated Income Programs. Find out if this affects you.
i-
ers
about BOOM Magazine BOOM Magazine is all about property investment. When this magazine was conceived, the market lacked some real content relating directly to property investment. It seemed like just about every realtor could contribute an article about selling your home, and it would be in blogs and magazines all over the place. BOOM Magazine was created for the property investor, by the property investor. Each month, you will see contributions from professionals in the market as they share their experience in the field. Within BOOM Magazine, you can expect the very best of our market - whether it relates to property investment, financing and leveraging or the different asset types, BOOM Magazine will be sure to have it as an editorial. Would you like to contribute to BOOM Magazine? Email editor@bestofourmarket.com and we’ll talk. Would you like to influence the direction of the magazine? Register to subscribe and vote on the polls on what type of articles you would like to see more of.
contributors Julie Broad Julie Broad has been investing in residential real estate for over a decade across Canada. She’s a featured keynote speaker and an award winning real estate blogger with a passion for helping others transform their financial future with real estate investing. Connect with her at: www.revnyou.com
Sylvia Sigurdson For over 14 years, Sylvia has been assisting people with their mortgage needs, originally as a licensed realtor and now as an Accredited Mortgage Professional (AMP) at Mortgage Depot in Victoria, BC since 2004. She has specialized in helping her clients acquire investment real estate as part of a wealthbuilding strategy and excels at structuring mortgages with the greatest tax advantage in mind. www.mortgagecanada.com
Julie Jones Julie Jones is an independent accredited mortgage professional (AMP), who’s focus is on providing the best mortgage option for clients financing needs. With a BA from Queens University, and extensive experience working in the real estate industry, she is able to offer the best options when it comes to your financing needs. Knowing that your time is of upmost importance, she only brings the best options forward. Customer service is top priority. www.bcmortgageinfo.com/julie
Stephanie Shiu Stephanie is a licensed Mortgage Broker with TMG (The Mortgage Group) and REALTOR® at Sutton Westcoast. With a Diploma in Urban Land Economics from the University of British Columbia and over five years experience in the Real Estate Industry, she has the knowledge and skills to help you buy, sell, or arrange financing for your home. These processes can be daunting to many as there are a wide assortment of housing and mortgage options in today’s marketplace. It’s her job to work closely with you in order to ensure that she not only negotiate the best price and rate but also ensure that your transaction proceeds smoothly. Stephanie takes great pride in the customer service she provides and relies on referrals and your repeat business. www.stephanieshiu.ca
Th Creative
hink Outside the Box: e Financing Solutions Financing your real estate investment is one of the more challenging parts of property investing. Did you know you have more options than you think? These 8 creative financing solutions can help you buy the income property you want NOW.
Think Outside the Box: Creativ Financing Solutions By Sylvia Sigurdson
One of the biggest hurdles of purchasing an investment property is coming up with the financing. Often, the desire is there, but the means are not. Like anything, it sometimes pays to look outside the traditional box for financing solutions, especially in light of the recent tightening down of policies for revenue property, especially for the self-employed borrower.
put as little as 5% down on a duplex (or even consider a cash-back option still available with a couple of lenders), and as little as 10% down for a fourplex. 2) Vendor Second
When a vendor is either highly motivated to sell or financially secure (or both) and doesn’t need all of the Here are the basics for purchasing investment prop- funds from the sale, they might be willing to carry erty: some or all of the down payment. As long as you qualify for the additional loan payment, many lend1. If you’re not going to live in the property, you ers carrying the first mortgage (80%) will allow this need to come up with a 20% down payment type of scenario. 2. The remaining 80% is borrowed against the property you’re purchasing 3) Vendor Take Back (VTB) This is nothing new, and if you’re in the straightforward position of having point 1) (above) in order to secure point 2), then you have no need to read on.
Similar to a vendor second, a VTB is often where the vendor will carry all of the financing. When a vendor owns their home free and clear, for example, and does not need the liquidity from the sale, they When you are working on securing your first prop- are often looking for a decent return on their money. erty, you might not want to wait to save 20% for a A VTB would be a win/win in this situation because down payment. The opportunity may be presenting the purchaser may not be in a position to borrow itself now. So, what other options do you have? funds from regular channels, or may not have the down payment, and the vendor will collect mortgage This is not a complete list, and you may have had payments at a higher interest rate than they would success in other approaches, but for now, here are a get from a regular investment, but often even lower few to ponder on: than a traditional mortgage rate. The title transfers to the purchaser and the vendor essentially becomes 1) Buy a Duplex or Fourplex the bank. The idea behind purchasing a multi-unit dwelling 4) Hard Money Lenders is for you to live in one of the units, thereby taking advantage of the lower down payment options Thankfully, there are always lenders in the maravailable for an owner-occupied property. You can ket who, for a higher interest rate, think outside
ve the box where lending is concerned. In situations of tough credit, income that’s difficult to prove, or short-term solutions, the B lending realm is a great solution. Even at a high rate of 14%, for example, if the numbers on the investment make sense, and there’s still profit to be made, why not pay a higher rate? These lenders tend to charge fees to place the mortgage in addition to a higher rate, and also want you to have an exit strategy. Their role is a stop-gap measure, generally for 6 months to a year, or up to two years if things don’t go as planned. An example where this can be effective is when you find a property that would be worth significantly more when the work is complete with extensive improvements. The high-interest financing would be put in place for the purchase and renovation; and when the work is complete, assuming the property will have gone up in value, your 20% equity will then most likely be in place and you would qualify for traditional financing with best rates. Make sure you have a Plan B in place as market fluctuations and overrunning costs can quickly change the bottom line. 5) Assuming Existing Mortgage
good (or sometimes only) solution for the vendor as well. 7) Joint Venture (JV) These are becoming more and more popular, as investors and buyers are working together to come up with creative financing solutions. There are still a lot of people out there with deep pockets, always looking for a way to make a better return on their money. They do not have the time, knowledge or inclination to purchase real estate themselves, but are more than willing to put up the funds for a potential solid longterm return, or a quick return. Come up with a creative and viable solution, and chances are there is a partner out there willing to fund the deal. If you have the time and know-how, but lack the resources, this would be an area for you to research and look into as a possibility. Often, it’s a 50/50 split of profits, but you can write your own rules to suit both parties. 8) The Bank of F and F (Family and Friends)
Most people cringe when they imagine borrowing money from family or friends. But think of it this This is becoming more common because there are way: if you had $100,000 in the bank, earning a palstill many zero down/40-year amortization mortgag- try 1% or less, and someone offered you a return of 6 es out there; and in markets where property values or 7% on your money, wouldn’t you be grateful and have not increased, often the difference between the think they’d be doing you a favor? This is not for evoutstanding mortgage and the purchase price is neg- eryone, and you may not have anyone who’s in a poligible. This is trickier if you are purchasing a rental sition to lend you that kind of money, but if you do, and the mortgage was originally insured, as it will structure it as a win/win and let them decide if they still need to be approved by the insurer, but every want that type of opportunity. No need to look at it as case will be different, making it worth pursuing. a favor. Offer it as a business opportunity. And like any business agreement, put everything in writing so 6) Lease to Own it is clearly laid out for both parties, leaving little or no room for misunderstandings. If you believe in an Some vendors are willing to sell their property on a investment project, why wouldn’t you want to share lease-to-own basis, where the purchaser pays an in- it first with the people you love? flated rental amount. A portion of the amount goes towards rent while a portion goes towards building If you are open to some creativity, the above ideas up a down payment over time. This allows a pur- could get you into the market sooner than later, chaser to get into the market now as opposed to after which is perfect timing if you believe in the adage, they’ve saved their down payment. In tougher mar- ‘The best time to buy real estate is now!’ kets, when a quick sale is not imminent, it can be a
Investor Spotlight: Kosi Stobbs and The Learning Curve This issue’s featured investor is Kosi Stobbs. In the last 9 years, he went from owning 1 property to 19 with an investment portfolio worth $3.6 mil. In this issue’s Investor Spotlight, Kosi shares his story on how real estate changed his life while he provides some insights on what helped him along the way.
Investor Spotlight: Kosi Stobbs and The Learning Curve By J. Von Sprecken - BOOM Contributor Kosi Stobbs was 15 when he first had aspirations of investing in real estate. He carefully put aside savings from his part-time job with the intention of one day investing it in property. When Kosi graduated from university with an engineering degree at the age of 21, Stobbs bought his first property in Vancouver’s lower mainland for under $120K. Now, nine years later, he owns 19 properties and an investment portfolio worth $3.6 million. “Obviously I enjoy it,” he explains.
will one day lead to a situation where quitting his current job and focusing fully on his investments will make more sense.
Since the purchase of his first rental unit, Stobbs has diversified his investment strategies by branching out into multi-family units with condo conversions and the purchase of an apartment building. These two strategies play into one another, with condo conversions acting as a means of raising capital for future investments and the apartment buildings as buy and hold investments for long-term wealth. “When you look at the numbers, there’s better economies of scale when you’re buying apartment buildings as to buying single-family. I learned a lot in the singlefamily world in terms of how to enter the multi-family world.” He believes that his work in multi-family
Overall, Stobbs seems to have found his success through a tenacious approach to business, but also by exercising caution and learning from his past mistakes. “For anything, whether you want to be a photographer or real estate investor – anything you want to do takes a while to get good at. And you only get good at something, I believe, when you learn. After years of trying things on a smaller scale that didn’t quite work, the biggest growth I’ve had in my portfolio has been in the last couple years.”
In order to make his way into multi-family, Stobbs began to raise capital through investors. Drawing from his engineering background, he explains that analyzing a property’s potential is something he has always been good at. “As an engineer, my time is valuable as a project manager in terms of day-to-day. That training is always in the back of my mind, so It was a step-by-step process, he says, that started employing that in the real estate world just seemed small and grew. From the purchase of that first prop- like a natural fit.” erty, Stobbs learned the importance of structuring his team around what he believed his future portfolio With solid numbers ready to present to potential incould be. “The very first time I started purchasing vestors, Stobbs began putting together business plans. units, I was calling around telling people that by the Some investors had no experience in real estate but time I was thirty years old I wanted to own ten prop- wanted to exposure to the market, while others were erties. I phoned a lot of different realtors who all told keen on actively participating in their own real estate me basically that it was impossible. Then I landed on investment. “Especially in the last few years I’ve had one that said, I own about fifteen units right now and the opportunity to work with other people and help I can definitely show you how to purchase multiple them decide if they want to get into real estate or properties. Taking advice and counsel from people decide that they don’t want to get into real estate. It’s that are actually doing it is extremely important. Peo- rewarding, because in the long-term, if they keep that ple who have never purchased investment property unit, it can change people’s lives – investment in real tell you how to do it, and that advice is detrimental.” estate can change people’s lives.”
Words to W as a Real Est
Watch Out for tate Investor In real estate investing, there are words in the industry that can evoke mentalities that can hold you back from being a successful investor. It’s important to understand that though real estate investing is an easy way to build your wealth, it doesn’t just fall into your lap. Also know when to ask for help and set reasonable goals for yourself.
Words to Watch Out for as a Real Estate Investor By Julie Broad Sticks and stones can break my bones, but words can never hurt me. Is that really true though? Here are a few words you are probably using as a real estate investor that might be holding you back or making things harder than they need to be. 1. Passive Income I don’t believe real estate investing has to be a full time job to change your life, but I do believe that you have to remain involved with your properties and keep a careful watch over your money. Even if you have hired a property manager, you must keep an eye on your property and the money flowing in and out. Nobody will ever love your money quite like you do - so give your money the care and attention it deserves and keep an eye on it. Instead of pursuing passive income, you could pursue leveraged income or even streams of income. But by calling it “passive”, it gives off the connotation that you do not have to do anything and that money will just “passively” fall into your lap. This is simply untrue. Ask questions. Visit the property. Review the statements. Just make sure things are operating like you expect them to be operating. 2. Practice Makes Perfect This phrase comes up in so many places beyond real estate that I had to share it. The fact is that practice doesn’t make perfect, practice makes permanent; and as such, you need to ask yourself – what exactly are you practicing? And here’s where it applies to real estate investing: A lot of people are doing things that are not working. Instead of stopping, assessing where they are and finding help they need to get to where they want to go, they self diagnose, shrug their shoulders and figure they just need to “practice” a bit more to get it right. In other words - they figure practice makes perfect - and just try again.
If you have been trying to invest in real estate for years, but it’s not working for you, then it isn’t the time to try harder; it’s time to get help! If you have purchased a couple of properties and you are losing money, it’s imperative that you reassess what you are doing and find someone to help you figure out what you are doing wrong. Practice doesn’t make you better unless you’re practicing the right motions and steps. 3. Freedom For me, and I’m sure it was for you too, freedom was a key incentive to be a real estate investor – I didn’t want to report to a boss every day. Here’s the kicker you may not have figured out yet though, freedom is not a guarantee as a real estate investor. It really depends on how you’re defining freedom; and this is important because big things are very possible in a short period of time if you are an action-taking investor. After attending a couple of conferences last year and chatting with investors who have purchased 30, 50 and even 70+ units in the last 5 years, I know how vast the opportunities out there are for investors that take initiative. I also know how regretful it can be if you’ve gone all that way only to find out that long journey took you to the wrong destination. In other words, the majority of these investors that I met had freedom from a 9-5 job, yet were absolutely unbelievably miserable. Many were selling out of real estate and planning to venture into an endeavour completely different from real estate investing because they had traded one prison for another. If you are getting into real estate for freedom then you have to ask yourself what freedom is to you. It is different for everyone. The word freedom can be dangerous to use - unless you have given yourself a specific definition. You may find, once you define it, that real estate isn’t the solution for you. Or, you might find, as I have, that it is able to give you exactly what you want to create the life of your dreams.
Baby Boomers a Switch to Multif
and the family Living
It’s no secret that baby boomers have a huge effect on the Canadian housing market. By 2036, seniors are predicted to represent about a quarter (24%) of the total population in Canada, and they will continue to drive housing demand as they have done so in the past. As of this year, baby boomers are at an age where they are noticeably making the move from single-family living to multi-family.
Baby Boomers and the Switch to Multifamily Living By J. Von Sprecken - BOOM Contributor It’s hardly news that the economy is in the hands of the baby boomers. In Canada, retirement-age boomers are the fastest growing demographic, and it will be several decades before this jump shows any sign of slowing. In fact, by 2036, seniors are predicted to represent about a quarter (24%) of the total population in Canada. Numbers like these ensure that the economic impact of the boom generation’s financial decisions will be widely felt. This degree of buyingpower will have savvy investors watching this demographic very closely. Baby boomers will continue to drive housing demand as they have in past decades. In fact, the Conference Board of Canada’s Canadian Outlook Long Term Forecast predicts that this demographic will spur over 80% of housing starts by 2030. They will have specific housing requirements in mind when they make a shift from the homes they raised their families in. These investment dollars stand to reshape the current real estate market. In recent years, there has been continued demand for condominiums and smaller homes, a shift that is due in part to the increased demand for the simplified lifestyle associated with condo living. As demand for multi-family housing units rises, it is easy to see why boomers are turning to condos and leaving their large yards and snowy sidewalks behind. Condo living offers relative convenience and luxury, with modern finishes and additional amenities, such as swimming pools and gym facilities. Perhaps of even greater consequence to this generation, condo living offers minimal upkeep and maintenance, which simply makes life easier for this age group. In 2006, 57% of condo owners were over the age of 50 while 17% were 75 years old and above. For the property investor, the shift from the suburbs to multifamily developments is a trend to keep
in mind – especially since some baby boomers will choose to rent rather than buy, reinvesting the capital from the sale of their home in order to strengthen their investment portfolio. Renting to the elderly also comes with its benefits. Tenants of retirement age will leave an investor’s property in good repair, pay their rent and are unlikely candidates for noise complaints. They are also more likely to stay for a longer period of time, which means that the hassle of finding new tenants and the risk of vacancy is diminished. According to a poll conducted by TD Canada Trust, 31% of retirees do not plan on moving again. As an investor, multi-family housing comes with some distinct benefits. Condos are easier to maintain and are often located close to amenities that in turn make the unit attractive to renters. If the investor chooses a great location with services close-by and a growing economy, there will always be a potential pool of renters to pull from including students, young couples, and of course, empty nesters. In fact, the same poll conducted by TD Canada revealed that a quarter of all baby boomers are contemplating condominiums for their next move. As any real estate investor knows, it all boils down to the numbers and whether they add up. Without a doubt, the boom generation has strength in numbers – both in population and in buying power. This next phase for the baby boomers will have a considerable impact on the real estate market, and condominiums offer the smaller and less burdensome housing that retirees are looking for. Numbers like these cannot be ignored, and the savvy investor will know how to make them add up in their favor.
Essential Step Rookie Home The average person can own a home, but turning the decision to do so into a tangible purchase entails a process that most buyers require some support and guidance through. You have to take an active approach, from the first step to your final goal: find the right house at the right price, and buy it.
ps for e Buyers
Essential Steps for Rookie Home Buyers By M. Chiahemen - BOOM Contributor Purchasing a home is undoubtedly a very personal decision, but it is equally very financially entrenched. Theoretically, the average person can own a home, but turning the decision to do so into a tangible purchase entails a process that most buyers require some support and guidance through. Novice buyers, who are not familiar with the unique – and at times complicated – home buying process, are most likely to make what can only be described as rookie mistakes. These can easily be mitigated, however, by seeking out knowledgeable advisors and pertinent resources to ensure that the preliminary fine print and gritty details are not overlooked. Most buyers will need to take out a loan for an initial down payment, towards which monthly mortgage payments will have to be paid. A common mistake is beginning to shop around for real estate using current rental payments as a gauge to determine how much one can afford on monthly mortgage payments. This is misleading for a number of reasons. Namely, while maintenance costs are often subsumed under rental payments, this is not the case with a monthly mortgage. As a homeowner, one is effectively the landlord, which means that the cost of basic upkeep or repairs, are an added financial responsibility. Looking into your credit history is an essential step in home buying. Being up to date on your credit score will give you a more clear idea of what interest rates to expect, and thus how to budget accordingly. A good place to start, is to take advantage of your right to a free annual credit report, and the earlier the better, to give yourself time to fix any errors or consult a professional ahead of applying for a home loan. Indeed, as reported by CNN Money, one study found that 79% of credit reports contain some incorrect information, and as many as 25% have significantly damaging errors. Making the effort to check your credit report against your personal documents can mean the difference between securing a good loan or having and having to bear a steep interest
rate. Once the immediate business of tackling one’s financial status is complete, the focus can then shift to the state of the housing market. Much like personal finances, the housing market is not static. Rather, it fluctuates; in general terms, between a buyer’s market and a seller’s market. These shifts are negotiated by reciprocal fluctuations in supply and demand, as well as interest rates, consumer confidence and the overall condition of the economy, to name a few. At this stage of the home buying process, one should consult as many informational resources available that organize up-to-date information of housing trends. In Canada, the Canadian Real Estate Association (CREA) maintains a good indicator of the current housing market. CREA determines the house price index based on reported sale prices submitted by real estate agents, and averaged by region. People looking to purchase real estate should ideally look to purchase while the market is shifted towards a buyer’s market. That is, when supply is high and there are more houses on the market than buyers. Although experts like Russell Westcott, general manager of the Real Estate Investment Network, caution that waiting too long comes with its own dangers. Exercising too much patience runs one the risk of watching prices fall gradually only to watch them rise steeply again. Buyers should focus on buying the right house, at the right price. Diane Saatchi, a real estate agent with the Corcoran Group in Long Island, New York draws this analogy: “It’s like when you find a dress you like, and you wait for it to be on sale, and then the sale comes and they don’t have your size. Theoretically, you saved 20%. But you don’t have your dress.” The moral of the story here is that one most likely to succeed as a rookie homebuyer if you take an active approach, from the first step to your final goal: find the right house at the right price, and buy it.
The dust Up o com
Mortgage Intry Tightening on Stated Inme Programs Right now, there is a lot of confusion in the mortgage industry with the current states of both the US and European economies combined with talk of new government mortgage policy changes this coming spring. The industry is now in risk minimization mode and it ultimately is having a big effect on Stated Income Programs. Find out if this affects you.
The Mortgage Industry Tightening Up on Stated Income Programs
By Stephanie Shiu There are several factors currently affecting the mortgage industry, including the US and European economy and talk of new government mortgage policy changes in spring. Throw in the fact that CMHC is reaching its $600 billion cap imposed by the government on issuing mortgage default insurance, and we have a mix for plenty of uncertainty in the industry. Here is the pattern: every 3-5 years as the mortgage market grows, CMHC asks the parliament to raise the mortgage default insurance cap; and every time they ask, their request is approved. It was last raised by $150 billion in 2008. At the time this article was written, there has been no word as to whether the government will increase the insurance cap. As of September 30, 2011, insurance in force was at $541 billion. Why has the CMHC insurance cap doubled in the last 5 years? That’s happening mainly because of lenders’ enormous appetite for portfolio insurance (a.k.a., “bulk insurance”). What is portfolio insurance? Mortgage default insurance is typically only needed when someone with less than 20% down payment applies for a mortgage. However, the banks have been insuring on loans with even high down payments (not required by law) so they can securitize those bulk lending loans, thereby getting them off
their balance sheets and reducing their capital requirements. In those cases, in which the loan to value is less than 80%, the bank pays the insurance charge instead of the consumer. Why is this a concern? If CMHC cannot cover those defaults, Ottawa would be responsible for 100% of any shortfall, putting taxpayers at risk. This has much of the industry in a risk minimization mode. In turn, mortgages that are not insurable, incomequalified and owner-occupied, are now attracting more scrutiny. Being self employed myself, I am interested in how this will affect the future of stated income programs. Industry professionals have indicated that the government is already considering tough new measures for calculating how the self-employed qualify for loans, so there is probably little desire for supporting even more debt from CMHC. According to Statistics Canada, there are 2.67 million self-employed citizens; about 15% of the work force. Stated income programs were created as self-employed/ commissioned workers were unable to prove their income due to how they report income and deduct expenses. As a result, lenders with stated income programs take into account the income that you say you earn, and not the income you can prove. These programs require 20%-35% down and, of course, the income should be reasonable for your profession.
Given these developments and heightened risk aversion in the industry, many mainstream lenders like TD, FirstLine, Scotiabank, Street Capital, etc. have tightened up and or even abruptly eliminated their stated income programs. Various lenders (e.g., TD, MCAP, First National, Merix Financial, etc.) have also either increased rates for “stated” borrowers, or started charging insurance premiums on conventional business for self mortgages. Ron Swift, CEO of Pacific Mortgage Group Inc., quoted: “The result of these restrictions ultimately means there will be an impact on liquidity in the market place. I think this will first impact products that have the higher insurance costs, such as stated income & self-employed. They will either be stopped or the rates charged to these clients will have to be significantly increased. Either way, tightening liquidity, reducing mortgage options or increasing the costs will take some buyers out of the market, which will affect all of us.” How can mortgage brokers help? Most major banks will not look at 80% loan to value stated income mortgages. In fact, they prefer to have at least 65%-75% loan to value. Alternative lenders (which distribute mainly through brokers) require less equity and can
offer self-employed financing solutions with: • less paperwork (Income documentation required is usually limited to a business license and a recent notice of assessment to ensure that taxes are not in arrears.) • longer amortizations(e.g., 35 years vs. 30) • allowance for secondary financing, and • often no lender fees or insurance fees for strong borrowers Mortgage brokers can also help you look for the best terms and rate given your situation. Given the current state of the mortgage industry, I recommend consulting a mortgage broker if you are self-employed and are thinking of purchasing or refinancing in the near future.
issue 8
BOOM
Magazine b e s t
o f
o u r
m a r k e t