CASE STUDY
01
Credit Union Loan
The clients, a married couple with an annual income of over $100,000, currently own an investment condo and a townhouse for their residence. They approached us with the desire to upgrade from their townhouse to an house. However, the remaining funds from selling the townhouse were insufficient to purchase the desired house.
We assessed the rental property's value and utilized the appreciation in value to obtain cash. Additionally, we maximized the cash flow from the two rental units in the basement of the desired house. Through the credit union loan policy, we helped the clients secure an A-tier loan with an interest rate below 2%, equivalent to more than ten times their income.
As a result, the clients not only acquired their dream property but also used loan planning to convert their higher-interest condo loan to a lower-interest rate while obtaining cash. The total loan repayment amount is 10% less than the previous two loans combined, yet their assets appreciated by over 100%.
02
Low Down Payment
We maximize the utilization of government policies, leveraging a 10% down payment to acquire properties using self-employment income. The loan amount can be up to 4 to 5 times the self-employed gross income, with a maximum loan limit of 900,000. This policy tests the expertise of mortage brokers, allowing clients to achieve a return on investment of 450% within two years.
For individuals with local salary income, we can assist in obtaining CMHC loans, where the loan amount is approximately 5 times the salary. The loan amount cannot exceed 900,000, but we can secure a loan interest rate that is approximately 0.5% lower than the major banks. This helps first-time homebuyers with better asset planning.
03
New Immigrants
The policies for new immigrants have always been subject to significant changes, generally referring to immigrants who have arrived within the past five years. Currently, most banks require proof of a 35% down payment for new immigrants. However, we can help maximize loan amounts with minimal cash flow requirements, allowing for loan amounts that may be up to ten times the local income, and reducing the down payment to just one month instead of the traditional three months.
Recently, we assisted a client with an annual salary of $80,000 in obtaining a loan of $1.2 million, with the down payment transferred to their account by their parents in their home country just one month prior. In a similar situation, the client was only able to secure a loan of $890,000 from a major bank. Our expertise enables us to help clients reach their desired loan amounts more quickly and efficiently, facilitating timely transactions for new homes.
04
Construction Loan
For a mixed-use development project consisting of a five-story apartment building in downtown Vancouver, the client purchased the land before the pandemic. However, due to government approval delays and pandemic, we assisted the client in refinancing the appreciated value of the property, allowing them to borrow up to 80% of the original land purchase cost. This provided the client with additional cash flow to cover initial development and holding costs.
Following the pandemic, the project faced challenges such as rising raw material prices, increased loan interest costs, and tightening lending policies from financial institutions. Nonetheless, we successfully helped the client secure a construction loan amounting to 75% of the total development cost, along with a DPI loan with an interest rate below 1%.
05
Commercial Loan
The client, an experienced psychologist, primarily generates income through her company and has modest personal tax income. She wishes to purchase a two-story commercial space in Ladner for approximately $3 million by early 2022. Her plan is to use the upstairs area for her own practice and rent out the ground floor to alleviate monthly payment pressures.
After two weeks of dedicated efforts, we successfully assisted the client in securing a loan from a major bank, allowing her to achieve the goal of zero down payment. The loan amount covers 100% of the purchase price, and the interest rate is as low as prime plus 1%.
06
Self-Employed
The client is a realtor with an annual reported income of over $100,000. They currently own a primary residence in South Surrey. Their goal is to upgrade their primary residence and rent out their existing home.
Using the client's commission income statements, we successfully helped them utilize the equity in their existing property for the down payment while securing a loan for 75% of the new property's value. This allowed them to achieve their plan of a zero down payment for the new home.
Both properties have potential for future land development, aligning perfectly with the client's goal of using real estate as a retirement asset in the next ten years.
