The Situation
A senior manager with 22 years at one employer, divorced, owning a home and two rentals in another province, was completing on a presale townhouse in Alberta as a fourth property, about $490,000 including GST after the builder's cashbacks.
The Challenge
Four mortgages on one salary put total debt service near 49%, past a bank's usual line, however strong the client's $1.3 million in savings and $1.3 million of property equity.
The Solution
We placed the residential mortgage with a major bank, a prime lender, under a program that pairs a rental purchase with net worth qualification: the builder's rental guarantee of about $2,250 a month was counted, the savings and investments were documented as the source of the 20% down payment and as reserves, and the bank matched the rate on the client's other recent commitment. Approved at about $407,000, 80% of the price, on a five-year adjustable rate.
The Outcome
The presale completed on time at bank pricing, the fourth property is tenanted under a guarantee, and the client's investment portfolio stayed intact.