Life Event

A working professional couple found themselves in financial hardship after one of them was injured and went on long-term disability. Their income took a significant hit and their monthly cash flow was negatively impacted. Over the course of time, they had maxed out their credit cards and line of credit. Although they were continuing to make their minimum payment each month, the interest rates were very high and the actual debt was not being reduced.

Knowing that their income was limited and they were receiving disability payments, they thought their only option was to seek private funding. They were reluctant to approach their lender for fear of losing their home.

Although the interest rate quoted by the private lender was less than the interest rate on their credit cards, it was still much higher than using a traditional lender. The couple felt they would have to obtain a second mortgage with a rate of 10% plus a lender fee of up to 6% of the loan amount. In addition, the term would have been one year with a renewal fee of 1% for the total amount borrowed at the end of the term.

A friend encouraged the couple to seek the advice of a mortgage broker and GLM Mortgage Group was happy to help. We were able to use the income received from the disability, and refinanced their existing mortgage and consolidated the credit card and line of credit debt at a rate of 2.35%. In doing so, the couple was able to reduce their current monthly payment by $1,500 with an annual savings of $18,000 – or $90,000 over five years.

If you find yourself in financial hardship after a life even, give us a call now at 604.259.1486.

Value of Home

$525,000.00

LTV

80%

Credit Scores

748 & 676

Mortgage Solutions

All debts were paid with proceeds from their five-year, variable-rate mortgage with a 30-year amortization. The annual savings was more than $18,000.

Requested Mortgage Amount

$420,000.00

Income Documentation

Letter of employment and pay stub
Letter from insurance company regarding disability payments and confirmation of deposit with current bank

Total Debt Services Ratios

41%

CHIP Reverse Mortgage

A retired couple on fixed pensions found themselves struggling to make ends meet each month. Both were in good health and wanted to maintain an active lifestyle. They had spent their working years paying off their mortgage and had little saved in their RRSPs.

Purchase Plus

A young family owned a townhouse but wanted to sell it and buy a detached home that needed renovations.

Bank Says “No”

A single young female was refinancing her home after a common-law relationship ended. After working for seven years, she found herself on disability for a work-related injury. When she approached her bank to discuss her options, the only suggestion they offered was to sell her house. Thankfully, the GLM Mortgage Group team stepped in and helped her.