Entries by Chris

Unravelling the Mysteries of Credit Score Calculation

The algorithms that produce Credit Scores are closely guarded secrets.  They sometimes provide vastly different Credit Scores based on what seems to be similar information.  But we do know 2 things:  We know the basic structure of their credit analysis and, as a lender, we know that there’s more to a Credit Report than just […]

Simple Trick – The 5 W’s of Private Mortgage Applications

Face it, when a broker is dealing with “A” deals all day long, it’s hard to remember what to ask when a new call comes in that requires a Private Mortgage.  But here’s something that will help, and it can even be used over the phone to help pre-qualify a potential client.  Simply go through […]

Why Can I Finance a Condo But Not A Co-Op?

Co-ops and Condos may seem similar, but legally they’re much different.  Both are typically suites in multi-unit buildings and in fact to see them, you wouldn’t know the difference.   But one can be easily financed and the other is almost impossible to finance.  Why? In a Condo, or strata-titled property, the legal title to the […]

4 Tips for Mortgaging Properties in Company Names

It’s not just commercial properties that are owned by Companies. We often see residential properties held in corporate names too. This doesn’t have to be a deal breaker if you know what to look for. Here are 4 tips when reviewing an application from a corporate borrower: 1. The first question to ask is whether […]

Brokers: Where to find Private Deals

We hear from many brokers that they’d like to do more Private or “B” Deals, but they don’t know where to start.  Here are a few sources that you can use to build your business: Birds of a Feather:  If you’ve already done a few Private deals, specifically target your marketing for referrals from those […]

Financing Spousal Buy-Outs

While divorcing spouses may receive good legal representation in negotiating a property settlement, they may assume that there will be no problem financing a spousal buyout.  When they apply to finance the settlement, they’re hit with the stark reality of mortgage financing on one income. Sometimes the employment income isn’t enough to meet the qualification […]

Financing Rent to Own deals

The irony of Rent-to-Own financing is that you have good clients, and a good property, but because it’s a Rent-to-Own purchase rather than arms-length purchase, it’s tough to get these financed conventionally. The good news is that there is a solution for these clients.  The problem can be solved with a 2-step process.  First, your […]

Why all the fuss about CRA debt?

Whether intentional or unintentional, many of the business-for-self applications that we see list CRA debts in the Liabilities column.  Let’s face it, sometimes people who are amazing at running businesses are lousy at taking care of administration like tax remittances. But not all CRA debts are treated the same by lenders. GST and Employee Source […]

Why does the Lender insist on their own lawyer?

As the lawyer woke up after surgery, he said” “Why are all the blinds drawn?” The doctor answered: “There’s a big fire across the street, and we didn’t want you to think the operation was a failure.” All lawyer jokes aside, paying both their own legal fees and those of the lender is no laughing […]