24 May

Cottage Dreamin’… The Domino Effect of a Refi

Success Stories

Posted by: Tracy Price

Cottage season has finally arrived and the appetite of wishful cottage owners is hot. We recently helped a couple turn their dream of owning a cottage into a reality, and then some.

Long-term clients Al and Lydia approached us a few months ago with their desire to buy a cottage. They had seen our signage stating “Buy a Cottage for 5% Down”, deemed a second home. They had been working hard over the past couple of years to save an extra $16,000 for 5% down payment and closing costs for the purchase of their dream cottage. They were excited about an affordable $250,000 waterfront property they had found, which was being sold privately.

We sat down, ran some numbers and the initial appointment resulted in some disappointing news. Despite their strong incomes, they couldn’t qualify for the second home purchase because they had two sizeable mortgages in their names. Their primary residence, and, they had also co-signed for their son’s first matrimonial home a couple of years ago. With the new ‘stress test’ in effect, they had to qualify at 4.64% and the ratios just didn’t work.

However, we found a way to make it work… that’s what we do! As it turned out, their son and daughter-in-law now had enough work history and high enough incomes to qualify for their own mortgage. We were able to refinance John and Sally’s house and remove Al and Lydia from title, freeing up enough room in their debt service ratios to enable them to afford the cottage with a high-ratio mortgage. Success #1!!

John and Sally were pleasantly surprised by the appraised value of their home and we were able to get them enough money to finally finish their basement and backyard. This saved them from having to put these expenses on a high-interest Line of Credit. Success #2!!

Given the massive increase in property values in Centre Wellington lately, we took a look at what else we might be able to do for Al and Lydia. They had always wanted to own a property that they can earn income from, but they didn’t know how they would ever be able to do that. Turns out, their property value had appreciated very nicely and it made sense for them to refinance their principle residence as well. We were able to get them enough money to purchase an additional cottage for $300K with 20% down, which they will be renting out starting this summer. Success #3!!

They were able to debt-service the three mortgages and are thrilled about achieving this type of property ownership, which will play a large part in their retirement security as they approach their golden years.

With some creative thinking, passion and dedication, we were able to help these two families achieve their dreams and beyond! Contact us to see how we can help you achieve your aspirations of cottage and/or rental property ownership. We love what we do, and it shows!

2 May


Success Stories

Posted by: Tracy Price

Leon bought a year ago.  It was tough for him to break into the market with a sole income, existing debt and a wife and three kids to support.  But with a lot of grit, a great realtor and a very good mortgage broker he found a house that no one wanted.  It was priced well below market value because it needed work.  Mostly garbage removal, paint and some new floors.  Leon and his wife were motivated to improve the property and spent a few thousand dollars for improvements on a credit card.

When Leon called for help with his debt (carrying approx. $30 000), being only a year living in the property, we thought it was doubtful there would be enough equity to qualify for more money.  It used to take almost five years for homeowners who purchased with 5% down to qualify for more money under a refinance.  You can now only refinance 80% of your property value, so for the longest time it was impossible for most people to pay off the debt by taking equity out. Leon had only scraped together 5% of the purchase price or about $10,500.  He asked a friend to help him with the legal fees and borrowed $3,000 from him.  So his value would have to go up substantially in order for him to get the money he needed.

Leon trusts us implicitly because we worked so hard to get him into a house.  I told him, the only way out likely was a private mortgage for a few years until his value was high enough.  He needed money for a new roof so we both agreed the best course would be some private money to get his payments under control.  We ordered the appraisal and imagine our complete shock that the value of Leon’s property had gone up $105,000 in one year.  So under the 80% rule, he could borrow $248,000.  That meant a prime mortgage at best rates and not a private 2nd mortgage.

What an amazing solution which surprised all of us.  After a year of purchase, Leon was able to pay off his entire debt load of $30,000, pay back his friend the $3,000 and put a roof on with some cash to spare.  We will be breaking his current mortgage with a minimal penalty (again good mortgage broker) and because he will now qualify under refinancing rules for a 30 year amortization, his mortgage payment is staying the same.  Leon now only has a mortgage to pay and he vows not to get into debt again.

We have never seen spikes in values year over year in our entire 25 years in business.  If you are in debt and stressed about it, call us now for an analysis of your situation.

8 Mar


Success Stories

Posted by: Tracy Price

Tracy and I are celebrating our 15th anniversary as mortgage professionals, together.

We started in Mount Forest and moved to Fergus/Centre Wellington seven years ago and have never looked back. We love this sweet, safe, simple, lifestyle in this wonderful thriving growing community so close to everything.

We so love the people, the locals who look you in the eye and smile as they say hello. And we love the free parking too.

Our business has grown leaps and bounds each and every year. We have built a presence and reputation for really helping people.

Jim and Laurie our original employees have been with us for over ten years and have grown into the largest mortgage source in the region. We are also so fortunate that our business has evolved into a family business with the addition of two of our daughters Jennifer and Melanie who recently joined us bringing with them three wonderful grandkids.  Our team of seven dedicated and caring professionals are here to help you daily from 8 a.m. to 8 p.m and 10 a.m. to 2 p.m on Saturdays.

Our national affiliation with Dominion Lending Centres, is now the largest national franchise with a mortgage portfolio bigger than RBC is a plus.

Our reality is a dream come true for us. We now have deep roots here in beautiful Centre Wellington and we are recognized as a business that cares, that helps and that puts people first!

From the beginning we realized that there was a great need to help people solve their financial problems that the banks would not.

Today our we help Canadians from all walks of life. Factory workers, self employed, single parents, first time buyers, separated and divorced couples, investors with property portfolios, teachers, doctors, lawyers, commercial pilots, CEO’s etc. We witnessed first hand how we were changing homeowners lives for the better and it feels so good.

Our business has matured and we have become top brokers in Canada.  Last year, our little mortgage company with heart was lucky #13 out of 2500 mortgage agents.  That means we always get the very best rates and terms.  We are proud of this accomplishment and look forward to serving Centre Wellington for many years to come.

13 Feb


Success Stories

Posted by: Tracy Price

It’s more common than we realize and it’s very difficult to talk about. While most victims of domestic abuse are women, we acknowledge that this does happen to men as well. In this article, we will be sharing our experiences from a woman’s point of view. This is a highly emotional topic and one that our team has seen all too often, both through our business and also personally.

Domestic abuse. It’s highly likely that someone you know has been or is a victim of domestic abuse in some way, shape or form. Maybe that someone you know is you.

Whether it’s physical, verbal, emotional, financial or a combination of many, there are some common emotions victims share: fear, shame, guilt, lack of self-esteem and helplessness.

What you might be shocked to learn, is that if you are on title for your home, there is hope and we can find solutions you might not have dreamed of.

For instance, Ingrid had been making all payments on the home that she owned with her husband. For many reasons, she finally left him. She took on a rental payment for an apartment while she sought help for how to keep her home.

In the meantime, her credit suffered as she struggled to pay her monthly (mostly joint) consumer debts – credit cards, lines of credit, and vehicle loans etc. It was impossible for her to keep up. The stress of this on top of her personal situation was too much to handle.

She came to us for mortgage advice and we helped her to devise a plan for her finances, which helped give her a sense of empowerment. With these tips, she managed to find the confidence and strength to negotiate a legally binding agreement that enabled her to keep the equity in her home.

We found an alternate lending solution to help for the short-term while she rebuilds her credit. With steady payments and stable employment, the goal is to get her into a prime mortgage within 3 years.

Ingrid was committed and willing to do the work, and that’s what is making her case a success story. To quote Ingrid, “The Price Team was able to perform a miracle that has me keeping my home. I highly recommend them.”

No matter how dire your situation is, there is help. We can provide you with financial guidance if you have ownership in a home. Reach out if you are in need. We truly care and are here to help.

16 Nov



Posted by: Tracy Price

Sometimes terrible things happen to wonderful people. Life has a funny way of throwing a curveball when we least expect it, and sometimes, unforeseen circumstances mean that incurring huge expenses and not being able to keep up with the payments.

We see this scenario all too often. Recently, two sets of clients came to us for help with similar stories, at different stages of their stressful ordeal. In each case, a spouse fell sick and had to stop working. Treatment and medical supplies put them into debt, which was way over their heads. Neither couple had Mortgage Protection Insurance or Critical Illness Insurance. Had they been covered, they would have been able to stay above board financially.

John and Nancy came to us for help, not knowing what their options might be. They were current clients of ours and we had arranged their mortgage on their home just 3 years ago. Luckily, with property values up, they had a good amount of equity in their home. Their credit beacons had taken a hit because of some missed credit card payments, but luckily, they had never missed a mortgage payment.  We were able to find a prime lender that empathized with their story and refinance them so that they could pay off the medical debts and re-build their credit. THEY GOT TO KEEP THEIR HOME BECAUSE THEY CAME TO US FIRST.

Moyra and Hugh read one of our articles in the Welly and decided to call us to see if we could help them. They thought it was likely too late, but they called anyway. When Moyra had become ill and their debt load was out of control, they thought their only way out was to sell the home they’d been in for 30 years. They stopped the bleeding, but they had lost their home. Again, luckily, they had never missed a mortgage payment. We were able to find a lender who empathized with their situation and extended a short-term mortgage with a slightly higher interest to them. This will allow them to rebuild their credit and then move back into a prime mortgage in a couple of years. They had unnecessarily endured the stress of selling their home, and moving twice, while Moyra was ill and recovering. At least we were able to help in the end.

Make sure you do everything you can to make every single mortgage payment and make sure you call us FIRST. We can find a way to help get you through this rough patch.