What is the penalty to break my mortgage if I want to Upgrade, Refinance, or Sell? What are my Prepayment Privileges? Is my mortgage PORTABLE? These and other questions are answered in this presentation.

1. Presents
PERSONALITES OF YOUR
MORTGAGE PRODUCT - 101
TRANSLATING MORTGAGE INDUSTRY TERMS INTO EVERY
DAY LANGUAGE

2. A little about Geoff Lee…
√ Co founder and Director of the Imani Orphan Care Foundation – www.imaniorphancare.com
√ Over 22 years of real estate experience and investment
√ Ranked amongst the top 3% mortgage brokers in Canada by CMP magazine
√ Finalist in 2014 CMP Canadian Mortgage Awards for Best Customer Service from an
independent office

3. LET’S RECAP…
CREDIT 101
• What a credit score is…
• All you really need is 680 – 800 to get the best mortgage rate…
• How the credit score is calculated…
• How to fix your credit problems…

4. LET’S RECAP…
MORTGAGE QUALIFICATION 101
• How to qualify for a mortgage either self-employed or employed…
• Stated Income…
• Gross Debt Service Ratio and Total Debt Service Ratio
• Mortgage Insurance

5. LET’S RECAP…
TERMS YOU NEED TO KNOW 101
• High Ratio vs Conventional Mortgage…
• LTV, LOC (Secured vs unsecured), Amort, Fixed, VRM, DCR…
• Stated Income (BFS)…
• Rental Income…
• Flexdown…

6. Fixed and Variable RATES – know the rate!
“Fixed rates are a GIFT”
• 1 year 2.65
• 2 year 2.69
• 3 year 2.75
• 4 year 2.99
• 5 year 2.84
• 7 year 3.55
• 10 year 3.69
• VARIABLE PRIME less .5

7. Don’t know what to ask???????????????????
• What are the QUESTIONS you need to know to ask???
• The RIGHT questions make all the difference in determining which
mortgage product is right for you…..
• Always ask about the terms…
NO FRILLS
FULL FRILLS

8. ?????????????????????????????
What is the penalty to break my mortgage
if I want to Upgrade, Refinance, or Sell?
• You want to consider Mortgage Flexibility
NO FRILL says…
• 12 month principle & interest
• You may be stuck with the rate the Lender gives you
NOTE!!! 70% of borrowers break or re-negotiate their mortgage BEFORE maturity!!

9. ?????????????????????????????
What are my Prepayment Privileges?
How much extra can you put toward your mortgage principle – monthly/annually?
NO FRILL says…
• 0 – 10% of monthly payment
• No anniversary or lump sum payments
NOTE!!! How much do you really need?
• Stats say on 17% make lump sum payments
• 23% make monthly payments, usually no more than 10% should be needed

10. ?????????????????????????????
Is my mortgage PORTABLE?
Can I bring my mortgage with me without a penalty AND keep my interest rate?
NO FRILL says…
• No, you can’t
• Yes, but with restrictions (ie must sell your present home AND buy your
new home within 30 days)
NOTE!!! Be aware of Lending area, especially if you are working with a CREDIT UNION.

11. ?????????????????????????????
Can my mortgage be BLENDED AND
EXTENDED?
•
If I am to sell my home…
Can my mortgage be PORTED (carried) over to the new property?
Can my RATE be BLENDED?
Can the additional monies I will need to borrow for the purchase be EXTENDED?

12. ?????????????????????????????
Is my mortgage ASSUMABLE?
If I am to sell my home can someone take over the remaining terms of the mortgage?
•
NO FRILL says…
No, you can’t!

13. ?????????????????????????????
How long can my AMORTIZATION be?
How long will it take to pay off my mortgage at the contract rate?
•
Impacts debt servicing and monthly payment
NO FRILL says…
Maximum of 25 years….

14. ?????????????????????????????
Does this product apply to an investment
property?
•
NO FRILL says…
NO!

15. ?????????????????????????????
What will my rate be if I go from a VARIABLE
RATE MORTGAGE (VRM) to a FIXED rate?
•
NO FRILL says…
You get the STANDARD RATE…. not the BEST RATE….

16. In conclusion….
Once you know the RATE… understand the “long term
relationship” you are about to be committed to…
•
Get CLEAR answers on:
1. Penalty to break your mortgage 5. Amortization
2. Prepayment Privileges 6. Conversion
3. Portability 7. Applicable to Investment Property?
4. Assumability

17. “Too many of us are not living our
dreams because we are living in
our fears…”
Les Brown
“Lasting Quote….”

18. Get in touch with us….
www.geoffleemortgage.com
Twitter: @geoffleeca
Linked In: http://ca.linkedin.com/in/geoffleemortgage/
Email: Geoff@geoffleemortgage.com
Phone: 1.778.552.3489

19. Thanks so much for attending the GLM Mortgage Group
workshop – MORTGAGE QUALIFICATIOM 101.
If you have any questions please call me at 778.552.3489
or email me at geoff@geoffleemortgage.com.
“We specialize in getting you the fastest “YES” at the
SHARPEST RATE… GUARANTEED!”
- Geoff Lee