Real estate investment mortgages have always been a key part of our portfolio of services as we cater to the needs of net worth conscious mortgage borrowers. We take great pride in helping our clients make their wealth building efforts more efficient through properly structuring the mortgage financing for their real estate investment portfolios (always putting client long-term estate and financial goals at the core of the plan).
We believe in providing world class service to our clients and have a specific focus for the types of transactions we can help with. This allows us to be masters of our craft rather than “jack of all trades – master of none”. However, due to the amount of work and liability in this category of mortgage financing we will not work with real estate investors on a transaction only basis – we are not interested in taking on clients who only wish to use our team as a “one off”.
For new clients we do not handle:
- Mortgages with loan amounts less than $200,000 unless from an approved referral source*
- Mortgages with more than 2 applicants on title unless from an approved referral source**
- Mortgages for clients who are on title for 4 or more properties***
Real estate investment lending has become much more difficult over the past few years and as a result we no longer work with unorganized borrowers or investors who do not supply complete mortgage documents at the start of the process. In addition to the items mentioned in the process section under STEP 1: Organizing Your Mortgage Documents, as an investor you must have:
- Fully completed TMMG Real Estate Investor Worksheet with all items 100% accurately completed and confirmed to be current. Our office will provide this for you at the time of application or initial call. It is critical that lease amounts and property values be conservatively stated for the mortgage approval process.
- Current lease agreement with a tenant acknowledgement if the tenant is past the original term and now renting month-to-month. Leases must contain all pages and be fully initialled, signed, and dated to be acceptable as rental income verification to all lenders.
- Full verification of lease income received via bank deposits and/or T1 Generals including Form T776 – Statement of Real Estate Rentals for each property owned.
IMPORTANT NOTES – we do not under any circumstances handle any of the following mortgage situations:
- Mortgages for properties outside of Ontario, Alberta & British Columbia unless the province has no licensing provisions
- Private mortgage lending for clients, or Commercial or Industrial mortgage lending
- Rooming houses or student rental financing
- Construction financing of any kind (we regularly handle new home purchases, leasehold improvement & renovation work)
- Residential mortgages for properties with more than four units
- Mortgages for properties that have had any form of previous fraud or criminal activity associated with them (eg. grow ops, drug labs, criminal operations etc.) and/or any borrower who has ever owned or been associated with a property of this nature
- Mortgages for time shares, raw land, operating farms, properties zoned agricultural
- Mortgages for people borrowing within holding companies without a minimum financial advisory fee of $1,000
*For all mortgages below $200,000 there is a surcharge of $1,000 per transaction.
**For all transactions with more than 2 applicants there is a surcharge of $500 per additional applicant to a maximum of 4 total applicants.
***For our existing clients with a real estate portfolio we built with you, we are always happy to continue to provide assistance. Due to changing credit conditions and prevalence of mortgage fraud, we can no longer assume real estate borrowing portfolios that we did not initially setup. For new clients who are currently on title to 4 or more properties, we will not take you on as a client.
Important note on fee for service – please note that Calum’s hourly rate is a minimum of $750 per hour for bookings of 10 hours or more. Anything less than five hours is booked at an hourly rate of $1,000 per hour with refunds for funded mortgage transactions. Paid hours are subject to availability. Consulting or financial planning is not a mortgage fee but a financial advisory fee. Hourly rates are non-negotiable. There is no fee for service for clients where we manage their portfolio.