recycle your clients - earn two commissions

8/22/2019 Recycle Your Clients - Earn Two Commissions

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2/12


3/12

DLC Interest Advantage Your Name2189 Austin Ave. Your Office

Coquitlam, BC | V3K 3R9 Srreet AddressCity, BC PostalTel: 604.461.4346Cell: 604.461.4346 Cell: (604) 555-5555Fax: 1.888.524.9462 Office: (604) 555-5556

Emai : [email protected]: www.sheastoney.ca [email protected]

www.yourname.ca

20.0% 15.0% 10.0% 5.0%

List Price:

Down Payment: $182,000 $136,500 $91,000 $45,500

Closing Costs: $17,950 $17,950 $17,950 $17,950Property Transfer Tax (BC) $16,200 $16,200 $16,200 $16,200

Appraisal + Legal + Inspection: $1,750 $1,750 $1,750 $1,750

Down Payment + Closing Costs: $199,950 $154,450 $108,950 $63,450

Mortgage Amount: $728,000 $773,500 $819,000 $864,500

Mortgage Insurance Premium (CMHC): $0 $13,536 $16,380 $23,774

Total Mortgage + Insurance Premium: $728,000 $787,036 $835,380 $888,274

Amortization [Years]: 35 25 25 25

Ownership Expenses:

Mortgage Payment: $2,790 $3,721 $3,949 $4,087

Estimated Property Taxes: $241 $241 $241 $241

Less: Estimated Monthly Rental Income $1,200 $1,200 $1,200 $1,200

Estimated Net Ownership Expense: $1,831 $2,872 $3,100 $3,238

$69,451 $90,956 $97,988 $102,224

$106,480 $124,187 $131,219 $135,455

Rates and terms used in this example are based on the assumption that the borrower has a credit score above 680 and meets other credit requirements of the mortgage lender.

Closing costs averaging 1.50% of the purchasing price may include the following: land transfer taxes, legal/notary fees, appraisal, fire insurance, home inspection,

compliance letter etc. Please contact your Real Estate Agent or your consultant for details and exemptions.

The Buyer is aware that the property contains unauthorized accomodation and has been informed of the consequences of such ownership and the potential loss of income should the rental use be discontinued.

This data is for information purposes only and should not be relied upon without verification by contacting your Mortgage Advisor. The above discounted rate is not an offer or a rate commitment.

Insurance cost is an example only. The cost may be different based on each individual lender and selected product.

In this example, 80% of rental income has been deducted from the mortgage expense for mortgage qualification purposes. For mortgage qualification purposes, rental income ma y be calculated and applied differently based

on each individual lender poicies and selected products.

The above information is based on a 35 year amortization period with a downpayment of 20% and a 25 year amortization period for downpayments less than 20%. *APR assumes no fee(s) apply. Should any fee(s) apply, the

APR would increase.

Estimated Annual Gross Income Required if No Rental Suite Included:

Estimated Annual Gross Income Required:

Down Payment Options

2.99% 2.99% 2.99% 2.99%Interest Rate (5-Year Fixed Term) as of

July 21, 2013

$910,000

7817 19th Avenue

Burnaby, BC

MLS # Vxxxxxx


4/12

Burnaby (Edmonds) Example: Low Provable Income

Summary of the Clients: Husband and Wife Owned a condo in Burnaby Equity in Condo is about $80,000 The husband has hourly income of about $32,000 per year. (He also works part-time

for another $12,000 per year but this income cannot be included for mortgagequalification because he has had the part time job less than two years.)

The wife is a waitress earning about $22,000 per year. Tips cannot be includedbecause she does not report them on her income tax.

The husbands parents live with the family and earn about $20,000 per year inpension income.

Obstacles to House Ownership:

The combined provable income of the husband and wife was about $57,000. The husband had decent credit but below the top threshold that would give him

access to more favourable qualifying rules.

What they had going for them: The family had accumulated enough savings to make a 20% down payment. The husbands parents were willing to be co-applicants on the mortgage and their

$20,000 income could be included for qualifying.

The Solution:

Put 20% down to maximize amortization at 35 years and increase amount ofmortgage they qualify for. Use a lender offering the best treatment of rental income for qualifying. Add the parents and their income to the application.

The Result: The family bought this brand new HOUSE in the Edmonds neighbourhood in Burnaby

for $910,000. It has a 1-bedroom suite, a 2-bedroom suite and a coach home in theback yard.

The appraised economic rent was $1,200 per month for just the 2-bedroom suite. Theincome from the 1-bedroom suite could not be counted as it was not fully separate,

and the income from the coach home could not be counted because they have notyet been approved in Burnaby. The total actual rent for all the suites will be about$2,600.

Their net monthly net ownership cost per month (mortgage + property taxes rent)is about $430.

The family of four adults and one child now have a brand new HOUSE and more roomthan their previous 2-bedroom condo.


5/12




www.yourname.ca

20.0% 15.0% 10.0% 5.0%

List Price:

Down Payment: $189,900 $126,600 $84,400 $42,200




Mortgage Amount: $654,100 $717,400 $759,600 $801,800




Ownership Expenses:





$45,763 $75,931 $82,382 $89,440

$87,283 $118,515 $124,966 $132,025










APR would increase.





July 21, 2013

$844,000

16 Holdom Avenue

Burnaby, BC

MLS # Vxxxxxx


6/12

Capitol Hill Example: Self Employed

Summary of the Clients: Husband and Wife Owned a townhouse in Port Moody Equity in Townhouse is about $220,000 Wife hates the hour long commute into Burnaby

Obstacles to House Ownership: Husband self-employed less than two years and income after it is written down is

close to zero.

What they had going for them: The wife has steady employment and steady income with BC Hydro, earning $56,000

per year.

The wife has good credit.

The Solution: Put 20% down to maximize amortization at 35 years and increase amount of

mortgage they qualify for.

Use a lender offering the best treatment of rental income for qualifying. Leave the husband off the deal and use only the wifes income and credit strength.

The Result: The family bought this fully renovated HOUSE in the desirable Capitol Hill

neighbourhood in Burnaby for $844,000. It has two 1-bedroom suites that hadappraised economic rent of $1,600 per month and actually rent for $1,730.

Their net monthly net ownership cost per month (mortgage + property taxes rent)is about $1,070.

The wifes commute to work is down to an easy 20 minutes and she it has greatlyreduced her stress level too.


7/12




www.yourname.ca

20.0% 15.0% 10.0% 5.0%

List Price:

Down Payment: $97,180 $72,885 $48,590 $24,295




Mortgage Amount: $388,720 $413,015 $437,310 $461,605




Ownership Expenses:



Less: Estimated Monthly Rental Income $900 $900 $900 $900

Estimated Net Ownership Expense: $949 $1,556 $1,685 $1,762

$34,266 $49,567 $53,528 $55,914

$59,189 $74,490 $78,451 $80,838




July 21, 2013

$485,900











APR would increase.

Maple Ridge, BC

MLS # Vxxxxxx


8/12

Maple Ridge Example: Self Employed + Poor Credit

Summary of the Clients:

Husband and Wife Own a townhouse in Maple Ridge Equity in Townhouse is about $20,000 3rd child on the way, family needs more space.

Obstacles to House Ownership:

Wife has very poor credit and large personal debt Wife is self-employed

What they had going for them:

The husband has steady employment and steady income as an hourly employee,making $43,000 per year.

The husband has good credit. The wife sold her daycare business to increase their down payment.

The Solution:

Put 20% down to maximize amortization at 35 years and increase amount ofmortgage they qualify for.

Use a lender offering the best treatment of rental income for qualifying.

Leave the wife off the deal and use only the husbands income and credit strength.The Result:

The family will be able to afford a HOUSE in Maple Ridge that has a 2-bedroom suitewith estimated monthly rent of $900.

The house in this example has 2,954 sq. ft. and was built in 1997.


9/12




www.yourname.ca

20.0% 15.0% 10.0% 5.0%

List Price:

Down Payment: $183,600 $137,700 $91,800 $45,900




Mortgage Amount: $734,400 $780,300 $826,200 $872,100




Ownership Expenses:





$59,122 $88,030 $95,514 $100,022

$103,429 $132,337 $139,821 $144,329




July 21, 2013

$918,000











APR would increase.

7488 4th Street

Burnaby, BC

MLS # Vxxxxxx


10/12




www.yourname.ca

20.0% 15.0% 10.0% 5.0%

List Price:

Down Payment: $190,000 $142,500 $95,000 $47,500




Mortgage Amount: $760,000 $807,500 $855,000 $902,500




Ownership Expenses:





$58,984 $88,900 $96,645 $101,310

$108,830 $138,746 $146,491 $151,156




July 21, 2013

$950,000











APR would increase.

221 Renfrew Street

Vancouver, BC

MLS # V951169


11/12




www.yourname.ca

20.0% 15.0% 10.0% 5.0%

List Price:

Down Payment: $149,760 $112,320 $74,880 $37,440




Mortgage Amount: $599,040 $636,480 $673,920 $711,360




Ownership Expenses:





$45,426 $69,006 $75,111 $78,788

$89,042 $112,622 $118,726 $122,403




July 21, 2013

$748,800











APR would increase.

14301 Grosnover Road

Surrey, BC

MLS # F1304743


12/12

HOUSES with MORTGAGE HELPER SUITES Added Benefit to Buyers:

Shorter Commute Save TIME & MONEYWhen your client buys a HOUSE with a rental suite, they can afford to live closer to work. The

shorter commute will save them TIME and MONEY. The example below illustrates the savings bymoving from Cloverdale to Burnaby, reducing the clients commute from 33km to 6km. And this is

just for one person imagine the savings if a two people in the family shorten their commute.

In this example the commuter saves almost 2 hours per day in commuting time and almost $5,000

in vehicle expenses.

If your clients still arent convinced of the benefits of owning a HOUSE with a rental suite, show

them the commuting savings and they shouldnt need any more convincing.

Time Cost [Hrs.]

Value of Your Vehicle When New

Model Year of Your Vehicle

Current Commute: 33.6 km

Commute Buster Commute: 5.7 km

Vehicle Type (choose from pull-down menu):

How much do you pay in bridge tolls each way?

Fuel Costs: [ $ / litre ]

Current Commute - Monthly Vehicle Operating Costs

Shorter Commute - Monthly Vehicle Operating Costs

Daily Savings 1.86

Monthly Savings 36.4

Annual Savings 437

Cost of Commuting CalculatorDollar Cost

$13

$407

2010

$4,886

$25,000

Midsize

$3.00

$1.449

$778

$371

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