Case Studies "Finding Money" - Planning with WHY? - Situational Financial Planning, Halifax, Nova Scotia, Canada

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Case Studies "Finding Money"

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J. Blake Wilson
Mortgage and Financing Broker
Halifax, Nova Scotia
Case Studies


 

Small Business Owner Couple Secure Best Available Rate in less than 24 hours with 20% Down
Here’s the scoop:

Our clients had secured a pre-sale condo a few years ago with 15% down payment.  The condo was set to close in a month, but they did not have financing in place.  Their business had good cash flow, however they did not claim much income personally.  Two banks declined them, along with two other brokers. They were able to put as much as 35% down, if required, but that would have eaten into their working capital and they preferred to have a lower down payment.

Here’s how we helped:

• We were able to get financing approved with “A” rates in less than 24 hours with only 20% down payment
• Client was able to retain extra working capital to help them continue to grow their business

Investment Property Owners:
Here’s the scoop:

Our clients are partners owning rental properties. Both are self-employed, with incomes ranging on their CRA Notice of Assessments from the past two years. They did not qualify for financing with a conventional lender.

They had done significant improvements to one of their properties and were looking to take some of the equity out.  The broker they had been dealing with for the past 5 years was only able to get them 65% loan to value on the refinance, which wasn’t as much as they had hoped and left them short on paying off some other items.

Here’s how we helped:
• BWG had two other lenders approve the deal at 75% and 70% loan to value, but the rates were slightly higher
• BWG approached one of the original lenders (that the first Broker had approached) and, due to our knowledge of their products and strong relationship, we secured an approval for our client at 75% loan to value (LTV) with a lower interest rate
• More good news: this lender did not have lender fees, which saved the client even more money

Self-Employed Builder Looking to Take Out Equity to Invest in his Business:
Here’s the scoop:

Our client was looking for additional funds for a construction project. He had already approached his bank, but was unhappy with the loan amount they were offering due to the limited amount he claimed as personal income (although he had high net worth).

• BWG worked with the client to find an all-in-one solution for high net worth individuals
• The solution gave him access to over 200% more capital than his current bank had offered him
• This solution also allowed him to make interest only payments on the monies borrowed, payments which he could write off and have his company pay for (no personal interest expense incurred)
• The result: Our client was very happy as he was no longer required to make principle payments personally, while the money was loaned
• He could also advance and re-advance (on the principle that was repaid) when required, instead of getting a large lump sum of money and having payments start right away.

New to Canada - BWG Helps Self Employed Business Owner After Multiple Declines

Here’s the scoop:

Our client moved to Canada under an investment program to open a business here. He was in the set-up stage, so the business was not yet generating revenue. He wanted to purchase a home but had been declined by multiple banks and brokers.

Here’s how we helped:
• After others had failed, we were successful in securing him 65% financing, at a reasonable rate
• How? We took our time truly getting to know our client. Those that were unable to find him a solution had not asked the right questions, and had missed key pieces of information during what we refer to as our “planning phase”
• We were successful because we truly got to know him, assessed his current and long-term objectives, and found a lender that was a good fit for his unique situation
• He and his family have now settled in to their new home and are currently renovating
• He is a very happy client, and we are very happy brokers because we were able to help him


New to Canada – BWG Helps Permanent Residents Purchase Their Dream Home

Here’s the scoop:

Our clients, a husband and wife, are both Canadian Permanent Residents. One spouse is currently living overseas while they search for employment here in Canada. Prior to meeting us, our clients had successfully secured 65% financing from a bank. This sounds like a decent solution, but the problem is they wanted to put less money down.

Here’s how we helped:
• BWG found a solution that enabled them to put less money down without putting their desired home purchase on hold
• We helped them secure 75% financing, allowing to buy their dream home while still maintaining their desired cash reserve in their bank account
• How? We utilized a lender that allowed us to count their foreign income
• In a year’s time, we will revisit this file with additional options once the other spouse finds employment in Canada


Clients Looking to Make a Major Renovation Which Would Almost Double the Value of their Home

Here’s the scoop:

Our clients were in a situation where they wanted a larger and newer house, but they loved the area they lived in and their neighbours.  They had spoken to their current bank about the idea of a major renovation and, despite being very well qualified from an income perspective, they were having issues putting the financing together.

Here’s how we Helped:
• We were able to secure financing to complete the construction of the home to their specifications
• During the construction however, the clients decided to make some additional customizations which resulted in increased costs in some areas, while not completing some items that were supposed to be done in the initial deal
• This resulted in an issue with the initial financing that was in place due to a combination of the appraiser and the lender
• We found a new lender and appraiser, and were able to put together take-out financing that allowed them to pay the initial mortgage, the builder and their line of credit – all while getting a great rate.


Commission Client with a holding company:

Client made significant income but most of the revenue was kept in his company for tax reasons. The income he did take was received and split with his wife as dividends. They decided they wanted to move to a new area and to get the home they were looking for, the purchase price was over $1 million dollars.  The income they were claiming did not support this and the client also had a very large lease payment.

Blake was able to come up with a financing solution that only required them to put 25% down (which was all they could afford) and get financing through an alternative lender at a reasonable rate.  They went with a short-term financing deal and have plans to be able to re-finance next year after they re-work their income planning with BWG and their accountant to support their new lifestyle and higher expenses.

Business Client Purchases Property with No Money Down

Here’s the scoop:

We recently worked with a client to purchase a property for his business. The property would accommodate other tenants and our client would occupy 50% of the space. The client wished to make significant improvements to the property following acquisition.

Because the client’s business has seasonal fluctuations in revenue, having access to operating capital in slow times was considered, “nice to have”.

We worked closely with client and this was the result:
• 100% financing for the property purchase
• 100% financing on property renovations
• A larger operating LOC than was previously available to the client – which the client will be using to cover closing costs
• A corporate Mastercard with a significant limit
So, client purchased the property with no money down, and without the need to draw on operating cash flow. Client will cover closing costs with their LOC, with additional credit capacity remaining.  

If you have any questions or need advice about your next purchase, give us a call. It’s highly likely we can customize a solution specific to you!
 
 
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NOTE:
The information contained in this website is intended to provide general guidelines only. The application and impact of the law can vary widely from case to case based on the specific or unique facts involved. Accordingly, the information in articles are not intended to serve as legal, accounting or tax advice. Users are encouraged to consult with their professional advisers for advice concerning specific matters before making a decision.

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J. Paul Wilson, CFP®, ChFC®
Certified Financial Planner
27 Blue Thistle Road Halifax, Nova Scotia, B3S 1M3
Office (902) 405-8665 Email  paul@jpw.ca
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