Recycle Your Clients - Earn Two Commissions

HOUSES with MORTGAGE HELPER SUITES INFORMATION for BUYERS
W When hen people talk about a house with a Mortgage Helper they usually just think of it as a way to off off-set set some of the expense of owning a home. W What hat if you thought of a Mortgage Helper as a way to for a home by 48% 48% to 110 110% %? If you youre re feeling stuck forever in a condo or townhouse, imagine the possibilities of own owning ing a HOUSE in the neighbourhood you want to liv live e in in if your price range went up 11 110%. 0%.
The BENEFITS of owning a house with a Mortgage Helper or rental suite are many.
You o own wn a detached HOUSE instead of being limited to a condo or townhouse. You can choose to live live closer to work instead of always thinking you have to live far away to afford a house. Save money on automobile expenses: gas, wear & tear, tolls tolls, , etc. Save time and lower your stress stress. You have a greater choice of neighbourhoods to live in. Overcome mortgage qualifying obstacles, like: Low provable income. (ex. ex. Part-time Part time income and tips aren arent t proven.) Couples Couples with one spouse having having: : SelfSelf-Employment Employment or Commission Income Poor Credit High Debt Load Increase home equity faster: An An x% x% increase in value means tw twice ice the increase in dollars when you own an $800,000 HOUSE compared to a $400,000 townhouse. HOUSES tend to increase in value at a greater rate than townhouses and condos. You have flexibility to convert the rental suite back to your own living space when you can afford it. You have b built uilt in retirement income th uilt-in that at increases ncreases with inflation inflation. .
HOUSES with MORTGAGE HELPER SUITES INFORMATION for REALTORS
Now that you you, , as a Realtor Realtor, , understand more clearly the benefits to the buyer of owning a HOUSE with a Mortgage Helper, you can put that knowledge to work and generate additional sales commission from an otherwise stagnant database of past clients and old leads. Almost any buyer can benefit from the specialized mortgage products that use rental suite income that allow allows s a buyer to qualify for a bigger mortgage than they could otherwise. But, the buyers who will benefit the most are those who have built up some equity over the years in a condo, townhouse or house that you helped them buy. Now is the time to show your clients the added value you can offer them them, hem, (and their friends and family family, ,) ) by introducing them to the possibilities of HOUSE ownership that they may not have thought possible before. However you want to do it, you need to reconnect with your past clients and find out what they really want out o of f home ownership. Do they want to continue living in their condo or townhouse? Do they want to keep living in their house that is an hour or more away from work? Or, do they want to own a HOUSE that is in the neighbourhood of their choosing? They wont know whats possible unless you tell them about it. And guess who wins? Your client wins because they get a HOUSE in a neighbourhood they choose. I win because I earn a mortgage commission. YOU WIN because you earn pos possibly sibly TWO COMMISSIONS from selling their current home and helping them buy their HOUSE with a Mortgage Helper suite. suite. And of course, HOUSES HOUSES with suites are in a much higher price range than condos and townhouses.
[One Realtor I recently worked with earned a commission over $20,000 for selling his client client s s condo and helping the client buy a HOUSE in Burnaby with rental suites. The Realtor had been working with this client for years to get him into a house. The Mortgage Helper made it happen. happen.] ]
The real estate market isnt easy for Realtors right now, but it just got eas easier ier for you.
DLC Interest Advantage 2189 Austin Ave. Coquitlam, BC | V3K 3R9 Tel: Cell: Fax: 604.461.4346 604.461.4346 1.888.524.9462
Your Name
Your Office Srreet Address City, BC | Postal Cell: (604) 555-5555 Office: (604) 555-5556 yourname@office.ca www.yourname.ca
Email: sstoney@dominionlending.ca Web: www.sheastoney.ca
7817 19th Avenue Burnaby, BC MLS # Vxxxxxx 2.99% 2.99%
Interest Rate (5-Year Fixed Term) as of July 21, 2013
2.99%
2.99%
Down Payment Options

20.0% 15.0% 10.0% 5.0%
List Price:
Down Payment: Closing Costs:
Property Transfer Tax (BC) Appraisal + Legal + Inspection:
$910,000
$182,000 $17,950
$16,200 $1,750
$136,500 $17,950
$16,200 $1,750
$91,000 $17,950
$16,200 $1,750
$45,500 $17,950
$16,200 $1,750
Down Payment + Closing Costs:

Mortgage Amount: Mortgage Insurance Premium (CMHC):
$199,950
$728,000 $0
$154,450
$773,500 $13,536
$108,950
$819,000 $16,380
$63,450
$864,500 $23,774
Total Mortgage + Insurance Premium: Amortization [Years]: Ownership Expenses:

Mortgage Payment: Estimated Property Taxes: Less: Estimated Monthly Rental Income
$728,000 35
$787,036 25
$835,380 25
$888,274 25
$2,790 $241 $1,200
$3,721 $241 $1,200
$3,949 $241 $1,200
$4,087 $241 $1,200
Estimated Net Ownership Expense: Estimated Annual Gross Income Required:

Estimated Annual Gross Income Required if No Rental Suite Included:
$1,831 $69,451
$106,480
$2,872 $90,956
$124,187
$3,100 $97,988
$131,219
$3,238 $102,224
$135,455
Closing costs averaging 1.50% of the purchasing price may include the following: land transfer taxes, legal/notary fees, appraisal, fire insurance, home inspection, compliance letter etc. Please contact your Real Estate Agent or your consultant for details and exemptions.
The Buyer is aware that the property contains unauthorized accomodation and has been informed of the consequences of such ownership and the potential loss of income should the rental use be discontinued. The above information is based on a 35 year amortization period with a downpayment of 20% and a 25 year amortization period for downpayments less than 20%. *APR assumes no fee(s) apply. Should any fee(s) apply, the APR would increase. This data is for information purposes only and should not be relied upon without verification by contacting your Mortgage Advisor. The above discounted rate is not an offer or a rate commitment. Insurance cost is an example only. The cost may be different based on each individual lender and selected product. In this example, 80% of rental income has been deducted from the mortgage expense for mortgage qualification purposes. For mortgage qualification purposes, rental income may be calculated and applied differently based on each individual lender poicies and selected products. Rates and terms used in this example are based on the assumption that the borrower has a credit score above 680 and meets other credit requirements of the mortgage lender.
Burnaby (Edmonds) Example: Low Provable Income

Summary of the Clients: Husband and Wife Owned a condo in Burnaby Equity in Condo is about $80,000 The husband has hourly income of about $32,000 per year. (He also works part-time for another $12,000 per year but this income cannot be included for mortgage qualification because he has had the part time job less than two years.) The wife is a waitress earning about $22,000 per year. Tips cannot be included because she does not report them on her income tax. The husbands parents live with the family and earn about $20,000 per year in pension income. Obstacles to House Ownership: The combined provable income of the husband and wife was about $57,000. The husband had decent credit but below the top threshold that would give him access to more favourable qualifying rules. What they had going for them: The family had accumulated enough savings to make a 20% down payment. The husbands parents were willing to be co-applicants on the mortgage and their $20,000 income could be included for qualifying. The Solution: Put 20% down to maximize amortization at 35 years and increase amount of mortgage they qualify for. Use a lender offering the best treatment of rental income for qualifying. Add the parents and their income to the application. The Result: The family bought this brand new HOUSE in the Edmonds neighbourhood in Burnaby for $910,000. It has a 1-bedroom suite, a 2-bedroom suite and a coach home in the back yard. The appraised economic rent was $1,200 per month for just the 2-bedroom suite. The income from the 1-bedroom suite could not be counted as it was not fully separate, and the income from the coach home could not be counted because they have not yet been approved in Burnaby. The total actual rent for all the suites will be about $2,600. Their net monthly net ownership cost per month (mortgage + property taxes rent) is about $430. The family of four adults and one child now have a brand new HOUSE and more room than their previous 2-bedroom condo.
Your Name
16 Holdom Avenue Burnaby, BC MLS # Vxxxxxx 2.89% 2.89%
2.89%
2.89%

20.0% 15.0% 10.0% 5.0%
List Price:
$844,000
$189,900 $16,630
$14,880 $1,750
$126,600 $16,630
$14,880 $1,750
$84,400 $16,630
$14,880 $1,750
$42,200 $16,630
$14,880 $1,750

$206,530
$654,100 $0
$143,230
$717,400 $12,555
$101,030
$759,600 $15,192
$58,830
$801,800 $22,050

$654,100 35
$729,955 25
$774,792 25
$823,850 25
$2,471 $328 $1,730
$3,413 $328 $1,730
$3,623 $328 $1,730
$3,852 $328 $1,730

$1,069 $45,763
$87,283
$2,121 $75,931
$118,515
$2,331 $82,382
$124,966
$2,560 $89,440
$132,025
Capitol Hill Example: Self Employed
Summary of the Clients: Husband and Wife Owned a townhouse in Port Moody Equity in Townhouse is about $220,000 Wife hates the hour long commute into Burnaby
Obstacles to House Ownership: Husband self-employed less than two years and income after it is written down is close to zero.
What they had going for them: The wife has steady employment and steady income with BC Hydro, earning $56,000 per year. The wife has good credit.
The Solution: Put 20% down to maximize amortization at 35 years and increase amount of mortgage they qualify for. Use a lender offering the best treatment of rental income for qualifying. Leave the husband off the deal and use only the wifes income and credit strength.
The Result: The family bought this fully renovated HOUSE in the desirable Capitol Hill neighbourhood in Burnaby for $844,000. It has two 1-bedroom suites that had appraised economic rent of $1,600 per month and actually rent for $1,730. Their net monthly net ownership cost per month (mortgage + property taxes rent) is about $1,070. The wifes commute to work is down to an easy 20 minutes and she it has greatly reduced her stress level too.
Your Name
Your Office Srreet Address City, BC | Postal Cell: (604) 555-5555 Office: (604) 555-5556
Maple Ridge, BC MLS # Vxxxxxx 3.49% 3.49%
yourname@office.ca www.yourname.ca
3.49%
3.49%

20.0% 15.0% 10.0% 5.0%
List Price:
$485,900
$97,180 $9,468
$7,718 $1,750
$72,885 $9,468
$7,718 $1,750
$48,590 $9,468
$7,718 $1,750
$24,295 $9,468
$7,718 $1,750

$106,648
$388,720 $0
$82,353
$413,015 $7,228
$58,058
$437,310 $8,746
$33,763
$461,605 $12,694

$388,720 35
$420,243 25
$446,056 25
$474,299 25
$1,599 $250 $900
$2,096 $250 $900
$2,225 $250 $900
$2,302 $250 $900

$949 $34,266
$59,189
$1,556 $49,567
$74,490
$1,685 $53,528
$78,451
$1,762 $55,914
$80,838
Maple Ridge Example:
Self Employed + Poor Credit
Summary of the Clients: Husband and Wife Own a townhouse in Maple Ridge Equity in Townhouse is about $20,000 rd 3 child on the way, family needs more space.
Obstacles to House Ownership: Wife has very poor credit and large personal debt Wife is self-employed
What they had going for them: The husband has steady employment and steady income as an hourly employee, making $43,000 per year. The husband has good credit. The wife sold her daycare business to increase their down payment. The Solution: Put 20% down to maximize amortization at 35 years and increase amount of mortgage they qualify for. Use a lender offering the best treatment of rental income for qualifying. Leave the wife off the deal and use only the husbands income and credit strength. The Result: The family will be able to afford a HOUSE in Maple Ridge that has a 2-bedroom suite with estimated monthly rent of $900. The house in this example has 2,954 sq. ft. and was built in 1997.
Your Name
7488 4th Street Burnaby, BC MLS # Vxxxxxx 3.49% 3.49%
3.49%
3.49%

20.0% 15.0% 10.0% 5.0%
List Price:
$918,000
$183,600 $18,110
$16,360 $1,750
$137,700 $18,110
$16,360 $1,750
$91,800 $18,110
$16,360 $1,750
$45,900 $18,110
$16,360 $1,750

$201,710
$734,400 $0
$155,810
$780,300 $13,655
$109,910
$826,200 $16,524
$64,010
$872,100 $23,983

$734,400 35
$793,955 25
$842,724 25
$896,083 25
$3,020 $266 $1,600
$3,960 $266 $1,600
$4,203 $266 $1,600
$4,350 $266 $1,600

$1,686 $59,122
$103,429
$2,736 $88,030
$132,337
$2,979 $95,514
$139,821
$3,126 $100,022
$144,329
Your Name
221 Renfrew Street Vancouver, BC MLS # V951169 3.49% 3.49%
3.49%
3.49%

20.0% 15.0% 10.0% 5.0%
List Price:
$950,000
$190,000 $18,750
$17,000 $1,750
$142,500 $18,750
$17,000 $1,750
$95,000 $18,750
$17,000 $1,750
$47,500 $18,750
$17,000 $1,750

$208,750
$760,000 $0
$161,250
$807,500 $14,131
$113,750
$855,000 $17,100
$66,250
$902,500 $24,819

$760,000 35
$821,631 25
$872,100 25
$927,319 25
$3,126 $336 $1,800
$4,098 $336 $1,800
$4,350 $336 $1,800
$4,501 $336 $1,800

$1,662 $58,984
$108,830
$2,744 $88,900
$138,746
$2,996 $96,645
$146,491
$3,147 $101,310
$151,156
Your Name
14301 Grosnover Road Surrey, BC MLS # F1304743 3.49% 3.49%
3.49%
3.49%

20.0% 15.0% 10.0% 5.0%
List Price:
$748,800
$149,760 $14,726
$12,976 $1,750
$112,320 $14,726
$12,976 $1,750
$74,880 $14,726
$12,976 $1,750
$37,440 $14,726
$12,976 $1,750

$164,486
$599,040 $0
$127,046
$636,480 $11,138
$89,606
$673,920 $13,478
$52,166
$711,360 $19,562

$599,040 35
$647,618 25
$687,398 25
$730,922 25
$2,464 $355 $1,575
$3,230 $355 $1,575
$3,428 $355 $1,575
$3,548 $355 $1,575

$1,244 $45,426
$89,042
$2,120 $69,006
$112,622
$2,318 $75,111
$118,726
$2,438 $78,788
$122,403
HOUSES with MORTGAGE HELPER SUITES Added Benefit to Buyers: Shorter Commute Save TIME & MONEY
When your client buys a HOUSE with a rental suite, they can afford to live closer to work. The shorter commute will save them TIME and MONEY. The example below illustrates the savings by moving from Cloverdale to Burnaby, reducing the clients commute from 33km to 6km. And this is just for one person imagine the savings if a two people in the family shorten their commute. In this example the commuter saves almost 2 hours per day in commuting time and almost $5,000 in vehicle expenses. If your clients still arent convinced of the benefits of owning a HOUSE with a rental suite, show them the commuting savings and they shouldnt need any more convincing.
Cost of Commuting Calculator

Dollar Cost Value of Your Vehicle When New Model Year of Your Vehicle Current Commute: Commute Buster Commute: Vehicle Type (choose from pull-down menu): How much do you pay in bridge tolls each way? Fuel Costs: [ $ / litre ] Current Commute - Monthly Vehicle Operating Costs Shorter Commute - Monthly Vehicle Operating Costs $25,000 2010 33.6 km 5.7 km Midsize $3.00 $1.449 $778 $371
Time Cost [Hrs.]
Daily Savings Monthly Savings Annual Savings
$13 $407 $4,886
1.86 36.4 437

Recycle Your Clients - Earn Two Commissions

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HOUSES with MORTGAGE HELPER SUITES INFORMATION for BUYERS

HOUSES with MORTGAGE HELPER SUITES INFORMATION for REALTORS

Email: sstoney@dominionlending.ca Web: www.sheastoney.ca

7817 19th Avenue Burnaby, BC MLS # Vxxxxxx 2.99% 2.99%

Interest Rate (5-Year Fixed Term) as of July 21, 2013

Down Payment Options

Down Payment + Closing Costs:

Total Mortgage + Insurance Premium: Amortization [Years]: Ownership Expenses:

$2,790 $241 $1,200

$3,721 $241 $1,200

$3,949 $241 $1,200

$4,087 $241 $1,200

Estimated Net Ownership Expense: Estimated Annual Gross Income Required:

Burnaby (Edmonds) Example: Low Provable Income

Email: sstoney@dominionlending.ca Web: www.sheastoney.ca

16 Holdom Avenue Burnaby, BC MLS # Vxxxxxx 2.89% 2.89%

Interest Rate (5-Year Fixed Term) as of July 21, 2013

Down Payment Options

Down Payment + Closing Costs:

Total Mortgage + Insurance Premium: Amortization [Years]: Ownership Expenses:

$2,471 $328 $1,730

$3,413 $328 $1,730

$3,623 $328 $1,730

$3,852 $328 $1,730

Estimated Net Ownership Expense: Estimated Annual Gross Income Required:

Capitol Hill Example: Self Employed

Email: sstoney@dominionlending.ca Web: www.sheastoney.ca

Maple Ridge, BC MLS # Vxxxxxx 3.49% 3.49%

Interest Rate (5-Year Fixed Term) as of July 21, 2013

Down Payment Options

Down Payment + Closing Costs:

Total Mortgage + Insurance Premium: Amortization [Years]: Ownership Expenses:

$1,599 $250 $900

$2,096 $250 $900

$2,225 $250 $900

$2,302 $250 $900

Estimated Net Ownership Expense: Estimated Annual Gross Income Required:

Maple Ridge Example:

Self Employed + Poor Credit

Email: sstoney@dominionlending.ca Web: www.sheastoney.ca

7488 4th Street Burnaby, BC MLS # Vxxxxxx 3.49% 3.49%

Interest Rate (5-Year Fixed Term) as of July 21, 2013

Down Payment Options

Down Payment + Closing Costs:

Total Mortgage + Insurance Premium: Amortization [Years]: Ownership Expenses:

$3,020 $266 $1,600

$3,960 $266 $1,600

$4,203 $266 $1,600

$4,350 $266 $1,600

Estimated Net Ownership Expense: Estimated Annual Gross Income Required:

Email: sstoney@dominionlending.ca Web: www.sheastoney.ca

221 Renfrew Street Vancouver, BC MLS # V951169 3.49% 3.49%

Interest Rate (5-Year Fixed Term) as of July 21, 2013

Down Payment Options

Down Payment + Closing Costs:

Total Mortgage + Insurance Premium: Amortization [Years]: Ownership Expenses:

$3,126 $336 $1,800

$4,098 $336 $1,800

$4,350 $336 $1,800

$4,501 $336 $1,800

Estimated Net Ownership Expense: Estimated Annual Gross Income Required:

Email: sstoney@dominionlending.ca Web: www.sheastoney.ca

14301 Grosnover Road Surrey, BC MLS # F1304743 3.49% 3.49%

Interest Rate (5-Year Fixed Term) as of July 21, 2013