The Situation
Two sisters and their husbands bought a half duplex with a legal suite in Metro Vancouver for about $1.26 million, with a third sister as the suite's tenant. The financing was not in place by the closing date, so the purchase completed on two private mortgages.
The Challenge
Four borrowers, five jobs between them, all hourly, and a private rate on $950,000 that could not be left in place for long. The file had to be rebuilt from scratch, with every income documented, while the private terms ran.
The Solution
Within three months we placed a residential mortgage with a monoline lender, an A lender that works only through brokers, at 75% loan-to-value on a five-year variable term and a 30-year amortization. Four letters of employment and pay stubs, the suite's lease at $2,400 a month and four clean credit files, all above 700, qualified the file at the stress-test rate. The new mortgage paid out both private lenders.
The Outcome
The family owns the home on prime pricing, with the private mortgages gone by the first summer. A private close is sometimes the only way to meet a date; the plan to leave it should exist before the ink is dry.