Case Studies
1. Debt consolidation saved the Taylor’s over $1,000 a month
Despite both having good jobs and doing their best to live within their means, Thornhill couple Jack and Beth Taylor saw their cash flow crippled by high monthly credit card payments. A low credit score caused their bank to decline help. Get a Better Mortgage Inc. had a solution.
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2. The Chanʼs received a variable mortgage (P-0.8%) despite a history of bankruptcy
Because banks have policies stating once a client has been named in a bankruptcy action, they will not extend credit to that client, things looked dire for the Mr. and Mrs. Chan. Digging deeper into their credit history, Get a Better Mortgage Inc. discovered a way to help their new clients get a great mortgage.
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3. Unstated personal income and a low down payment doesnʼt have to mean you donʼt qualify for a mortgage
Being a self-employed contractor, Nino did not declare a large part of his personal income. Even though his business was healthy and prospering the bank declined his mortgage application. The relationships Get a Better Mortgage Inc. has with alternative lenders opened other possibilities.
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4. Debra moved her mortgage from one lender to another for a better rate, no charge
A common assumption is that staying loyal with your current lender will result in them offering you the best mortgage available when it is time to renew. Debra asked Get a Better Mortgage Inc. to prove this assumption wrong.
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5. Brad & Alice refinanced and increased their monthly cash flow by $1300
This couple approached Get a Better Mortgage Inc. after their bank told them a $6,000 fee would be levied if they were to break their current mortgage so they could consolidate their debt. We found a way to help them find financing that made that fee an acceptable cost.
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6. Dominic made his mortgage tax deductible
Using the equity of your home, the credit it makes available and taking advantage of related parts of the tax code can open some great doors to growing and diversifying your investment portfolio. Dominic had heard of these opportunities and came to Get a Better Mortgage Inc. to take advantage.
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7. Construction Loan
Banks arenʼt always the most helpful advisors when a customer is looking for capital to start building a new home while still living in their current one. Get a Better Mortgage Inc. had a solution for a client in that very situation.
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1. Debt consolidation saved the Taylor’s over $1,000 a month
Scenario - The Taylors approached us looking to consolidate some credit card debts into their mortgage. The high monthly payments and interest associated with the large credit card balances was crippling their cash flow. They owned their home and didnʼt live an excessive lifestyle and needed help.
Problem – Despite a flawless record of making their payments, the Taylorʼs lender declined to accommodate their request to consolidate their mortgage with the credit card debt. The bank was obligated to deny them because they had a credit score below the minimum of 600. As you might guess, the low credit score was due to some late payments on the very credit cards they were now trying to clear.
Solution – Both husband and wife had solid jobs and they had good equity in their home so there was plenty of room to consolidate these debts into one liability with a smaller monthly payment.
Get a Better Mortgage Inc. recommended arranging a second mortgage and consolidated all of their smaller individual loans and debts into it. That reduced their monthly obligations by over $1000 per month.
Results – By paying off their maxed out credit cards, The Taylors had an immediate boost to their credit score and their household cash flow was also greatly improved.
Once their credit score was sufficiently improved, we applied to consolidate their first and second mortgage into one new first mortgage. And we improved their rate in doing so!
Learn more about refinancing your property with Get a Better Mortgage Inc.
2. The Chanʼs received a variable mortgage (P-0.8%) despite a history of bankruptcy
Scenario - Recently married, the Chanʼs came to us frustrated with having their mortgage applications declined by several banks due to Stevenʼs previous bankruptcy. The result of a previously failed business venture, this bankruptcy, combined with only a 10% down payment, prevented them from going to any “B” lenders as well.
Problem - Unfortunately for the Chanʼs, banks have a policy stating once a client has been named in a bankruptcy action, they will not extend credit to that client again. Additionally, many banks will not lend to someone who has previously suffered a bankruptcy, even if they were not directly included in the bankruptcy. Desperately, the Chanʼs approached each of the “Big Five” banks, but since Stevenʼs failed business had credit items with several banks the Chanʼs faced rejection at every turn.
Solution - After reviewing their client application and meeting with the Chanʼs we discovered that Steven had been discharged from his bankruptcy 4 years ago, and had re-established credit for over 2 years. Subsequently, the Chanʼs were eligible for a new CMHC mortgage under their guidelines.
Results - We were able to place them with a lender that provided them with an AAA priced mortgage despite Stevenʼs bankruptcy. They received a variable mortgage at P -0.8%, so their financing was not impacted at all by Stevenʼs history.
Learn more about securing a mortgage with Get a Better Mortgage Inc.
3. Even with unstated personal income and a low mortgage down payment we can help
Scenario - Nino contacted us wanting to purchase a home as his banking branch outright declined him.
Problem - Being a self-employed contractor, Nino did not declare a large part of his personal income. Even though his business was healthy and prospering the bank declined his mortgage application. Unfortunately for Nino under the bankʼs “stated income” program for businesses for individuals, they require a 35% down payment.
Solution - Nino had good credit and had been in business for over 5 years, but only had a 20% down payment, which we knew wouldnʼt be a problem for some alternative lenders.
Results - We were able to match Nino up with an “A” lender that has a program that will still provide a conventional mortgage (no insurance required) even though he only had 20% down.
Learn more about securing a mortgage with Get a Better Mortgage Inc.
4. Debra moved her mortgage from one lender to another for a better rate, no charge
Scenario - Debra, a single mother, had her mortgage with a big bank for several years when it recently came up for renewal from a fixed rate term.
Problem - The bank sent her a renewal notice offer with an interest rate well above average market interest rates, hoping she would just sign the offer without researching other options.
Solution - She contacted us to “shop around” for her. After reviewing the scenario and her mortgage needs in detail, we developed the most suitable mortgage strategy for her.
Results - We submitted for loan approval on her behalf with another institution at a far superior rate. Debra accepted the new deal and we coordinated a “no fee switch”, wherein the mortgage was moved to a new lender at no additional cost. Debra was thrilled!
Learn more about mortgage renewal options with Get a Better Mortgage Inc.
5. Brad & Alice refinanced and increased their monthly cash flow by $1300
Scenario - Brad and Alice approached us wanting to consolidate their lines of credit and credit cards into their mortgage. At the time they were in year 3 of a 5-year fixed rate mortgage at 4.6% and had approached with bank about breaking their mortgage and consolidating the debt.
Problem - The bank informed them that they would pay a $6000 penalty for breaking the mortgage and talked them out of doing so. The unsecured consumer debt was at the same bank, and with interest rates much higher than their mortgage rate they found it difficult to keep up with monthly payments, let alone eliminate the debt.
Solution - Brad and Alice came to us for a second opinion. After reviewing the numbers we determined that breaking their mortgage and refinancing, we could find them a new mortgage at a much lower rate. This lower rate effectively saved them roughly $7000 in interest over the remaining 2 years of their loan. In addition to the obvious savings, they could pay off their highinterest consumer debt and save another $600/month in interest. Overall their cash flow increased by over $1300/mo.
Results - We recommended they direct these savings towards their mortgage to increase payment frequency. In doing so the large consumer debt they consolidated would be paid off in just over two years and they would effectively be out of mortgage debt faster.
Learn more about refinancing your property with Get a Better Mortgage Inc.
6. Dominic made his mortgage tax deductible
Scenario - Dominic contacted us after hearing an idea about creating a “tax deductible mortgage”. He owned a home worth approximately $800k and only had a balance owing of $250k.
Problem - His financial adviser encouraged him to put some money in the stock market and although he had the money available in cash, he preferred to do so by using the equity in his home.
Solution - We recommended that we refinance his home and set up a “readvanceable” mortgage so he could make part of his mortgage tax deductable and also gain access to the equity in his home. We set up a mortgage enabling him to borrow up to 80% of the $800k value of his home, effectively replacing his $250k mortgage he had and borrowed a further $100k as a separate portion of debt. This would allow him to track the piece of his mortgage that was indeed tax deductible (the newly borrowed $100k).
Results - He now has access to a line of credit for $290k and he is able to track the amount of his mortgage that is tax deductible. Additionally, as he pays down his “readvancable” mortgage, his line of credit increases by an equal amount.
Learn more about tax deductible mortgages with Get a Better Mortgage Inc.
7. Construction Loan
Scenario - When building a new home, the Khans had no idea what was involved financially and how to go about leveraging their assets. Their home was worth $600k and had a small mortgage of $80k against it. They wanted to buy a lot to build a new house on and had $100k to put towards the project. The total estimated cost of the lot and construction was around $850k ($450k for the lot & $400k for building).
Problem - Their bank wouldnʼt give them a mortgage on the lot, but proposed they refinance their home to 80% ($480k freeing up $400k) and use their remaining cash to complete the purchase of the lot ($450k plus closing costs) leaving them only $60k to begin construction.
Solution - The Khans came to us for an alternative solution. We also suggested refinancing their home to 80% ($480k), as well as arranging a new mortgage on the land at 75% of the purchase price ($337,500). They then used their $100k in savings towards the purchase and only needed to use a further $20k of the freed up $400k from the refinance to close the land purchase.
Results - They were now free to use the new line of credit to fund the construction, and when they were finished they sold their existing home and paid off the line of credit. We then suggested they pay off the land mortgage and refinance with a new mortgage/line of credit structure for the balance.
Learn more about construction financing with Get a Better Mortgage Inc.