7 Things You Need To Know About Flipping Houses In Edmonton

7 Things You Need To Know About Flipping Homes In Edmonton

We have been flipping homes in Edmonton for years, and we have learned a lot of hard lessons along the way. Some of these lessons ended up costing us a lot of money, and others have halted our projects and sometimes even made our project timeline go backwards.

As a consumer, I know that you expect that you will hire a realtor to buy a flip and they will have all of the answers. Unfortunately that is far from the case….most Edmonton Realtors don’t know squat about flipping houses. Now that being said, there are some agents that will know what they are talking about and I really don’t want to discount their knowledge.

If your agent has not flipped more than 10 properties, then you should probably find yourself a different agent to deal with for a flip. Let me know if you need any recommendations, as I know lots of agents that are good for this type of purchase.

As you may know, we are Edmonton mortgage brokers that specialize in helping people finance their flip or investment properties in Edmonton as well as cross Canada. The majority of our client base is in Edmonton though and many of them are repeat flip customers.

I have personally flipped over 70 houses, so I really know and understand the nitty gritty of flipping in Edmonton. Please, please be careful when you flip a property and read some of our other Edmonton house flipping blogs. I have seen people loose a lot of money trying to flip houses in Edmonton. I have also seen people get into trouble doing this.

Now I am not trying to deter you, I flip houses because it can be really profitable if you do it right. I want to help you set up some expectations that are realistic for you, so that you know what you are getting yourself into.

So here they Are….

7 Things you need to know about flipping houses in Edmonton

  1. Contractors will try to rip you off

This is one of the most frustrating things about flipping houses, contractors will always try to rip you off. I always choose to get multiple quotes for every job because of this. Most contractors I meet are hardened by the industry and a lot of them have problems. I have one contractor that I have worked with, that jokes to me how he rips off old ladies when he gets the chance. It can be really grimey. So pre prepare yourself for some harsh realities.

Th only sure way to not get ripped off is to take a minimum of 3 quotes per job. I usually get 5 or 6. Never pay deposits upfront as I have had many contractor never show up again after taking a deposit. Please call me with any other questions about hiring contractors. I love to help.

2. You need to get a good electrician

The electrical is an essential job of a house flip. If the electrical is not installed correctly, the house could burn down and people could get injured. I always make sure I hire a licensed master or journeyman electrician WITH INSURANCE. Remember, you are liable for what happens in the house and if people get hurt, it will cost you a lot more than the cost of the electrician.

3. Don’t ever take down a wall unless you know what is behind it

Some people think that taking down a wall is just smashing through the thing. This is a big house flipping no no. I have had multiple situations where we have cut through electrical lines and damaged things because we were not careful taking down walls.

The other thing you need to take into consideration is permits and structure. If you remove a load bearing wall, the entire room can collapse on you. People could get hurt and the damage can be very expensive.

4. People will steal from you

When you are doing a house flip in Edmonton, there will be a lot of people going in and out. At some point you might have to hire some cheap labour for cleaning or general labour stuff. I usually find these people on Kijiji. They will work for cheap, but they also might steal from you.

They are not the only one that will steal from you. I have had multiple cases where our properties were being scoped out by people in the neighbourhood. They would wait until we left and then go into the house taking tools and sometimes damaging the property. These are usually drug addicts and other riffraff.

I put up fake cameras, sometime real ones at job sites as a preventative. I also put warnings on the doors and windows.

5. Contractors might do drugs on your property

You can ask any contractor if they use drugs and they will say no. It is bullshit, I have caught tons of contractors using drugs like weed and cocaine on the properties. I have even caught a contractor having sex with a prostitute in one of my flip houses. You really have to babysit these people. Call me if you have any questions about how to deal or avoid these situations all together.

6. Make sure they sign a waiver

I have all contractors that step foot into one of my flip houses sign a liability waiver. The waiver states that if they are hurt on the property, myself or my company are not liable. I had my lawyer draft this up and it keeps me protected. Not all of the workers you will be hiring will have wcb. So this is very important. Don’t let yourself be on the hook for someone.

As a matter of fact, if you don’t get a waiver signed you are just putting yourself at risk and I can see a contractor getting injured on purpose just so they can sue you. Nothing surprises me any more in this job.

7. Laminate needs to be staggered

Every person that walks through your door will tell you that they can do multiple jobs and flooring is always at the top of the list. If you see that the person you have hired is installing laminate flooring with a straight seam, you need to get rid of them. The floor will separate within a month.

Common questions about flipping houses in Edmonton

  1. Can you make money flipping houses in Edmonton?

Yes you can make a pretty good living flipping houses in Edmonton. You really have to be aware of all of your costs and know what your sell price will be in the end. Ask us how we do it.

2. How much money do you make on a house flip in Edmonton?

You will make an average of 12% flipping houses in Edmonton. However I have had times where I have made over 70k on a single house!.

3. Do I need a realtor to buy a house flip?

No you do not need a realtor to flip a house in Edmonton, but it could help. You have to make sure you hire a realtor that knows what they are talking about. And unfortunately most of them do not. Call me if you want a recommendation on someone that is goo in Edmonton or Calgary. I know good agents in both of these markets.

4. Can you loose money flipping houses?

Yes you absolutely can. I have a friend that bought a flip house without my advice. I’m not sure why, but he worked on this house for months. When it was done, he showed it to me and I told him he put way too much money into it and that he would loose. He ended up having it on the market for over 200days and when he finally sold it, he lost $25, 000. Please call me before you flip. I will help you save money. And read all of the Edmonton Flip blogs I have out on this website

4. How do I get a mortgage for a house flip?

Not every lender will lend on a flip. I am an Edmonton Mortgage broker that specializes in house flips. I know the lenders that will finance these at the lowest rates, and have many options for individuals and businesses.

5. Do you need permits for a house flip in Edmonton

You do need permits for some things when you are flipping a house in Edmonton. Some of these things are electrical, plumbing, load bearing walls, basement developments and more.

Sean Rampersaud Edmonton Mortgage Broker

Sean and Radika Rampersaud are a family team of Edmonton mortgage brokers. They specialize on helping their clients to get the lowest mortgage rates in Canada by leveraging high volume and multiple lenders. “We want to help our clients not only to get the best rates, but also to make the home buying process easier.”

Radika Rampersaud Edmonton mortgage Broker

Have One Of Us Call You Now For Free Or Contact Us Now At
780 278-4847

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7 Reasons Buying A Foreclosure In Edmonton Is Not A Good Deal

7 Reasons Buying A Foreclosure In Edmonton Is Not A Good Deal

Edmonton has a really unique marketplace right now, and what I am finding is that foreclosures are just not a good deal. People have this perception in their minds that they will pick up an awesome price on a house that is in foreclosure in Canada.

This is just not the case, and unfortunately some realtors out there are telling their clients that foreclosures are a good deal. This is a tactic to entice the buyer to act fast. If you really want to know if you are getting a good deal, call us before you buy. I will give you free advice on this, no problem as I have made the mistake myself in the past with buying foreclosures.

How do you get a mortgage on a foreclosure in Edmonton?

You will often have to put a large sum down…like 20%. The reason for this, is agents will make comments on the mls listing that the property needs work, or handyman special. The realtor think this is a good advertising tactic, but it really is not as it raises red flags with the banks.

What happens if red flags are raised with the bank when buying a foreclosure?

They will often ask for an appraisal, and depending on the condition of the property they can ask for more down. The insurers like cmhc and genworth can also decline the deal if the condition of the property is not good.

Furthermore when an appraisal happens, the appraiser may appraise the property lower than the value. You really have to make sure the appraiser doing the appraisal knows about foreclosures and values of repair. If you get one of these newbie appraisers they will grossly undervalue the property and the bank will decline or ask you for more down.

Please call me if you are in this situation, I understand the process and I can coach your realtor on what they can do to get this done. I also know the appraisers in the city that are good at this.

7 Reasons buying a foreclosure in Edmonton Is Not a Good deal

  1. Banks in Canada are Rich

The reason I say banks in Canada are rich, is because they can afford to sit on a foreclosure forever if they wanted to. I have personally put offers in on loads of foreclosures and I never end up getting a crazy deal. The reason for this is because the Canadian banks can afford to hold the property and will generally not take less than what they have in mind.

2. Other Peoples Problems

When you buy a foreclosure, you are buying another persons problem. There can be unexpected things that come up. Like for example, I bought one a month ago and when I took possession someone had stolen the furnace. It was crazy because the furnace was there when I bought it. The paperwork they make you sign is really strict, and you cannot go back to them for any reason.

3. Unconditional offers

If you don’t have cash to buy the house with or rock solid financing, then you may not be able to buy the foreclosure in Edmonton. The reason for this is that many foreclosure listing have to be unconditional offer. Meaning you cannot purchase subject to financing or inspection.

You better be really damn sure of the purchase before you buy this way, as you cannot back out for any reason or you could get sued.

4. No Inspections

Most foreclosures do not allow for inspections. The reason for this is because the homeowners that are loosing the house may still be in the property. Often these people will trash the property before they are evicted.

5. Court date frenzy

I have been to court for foreclosures in Edmonton and it is like an auction. You are allowed to up your sealed offer if you choose right before the decision and you also get to hear the other offers. This is craziness, and people tend to get into that auction mentality and keep upping their offers. I went into one a year ago on a severely damaged property. The people that ended up buying it paid way more than they should have.

I calculated what it was worth renovated vs what it would cost to fix and they would loose around 40k.

6. MLS Listed

The foreclosures are all MLS listed, so it is avail on the open market. You cannot get a good deal this way.

7. Realtor Pressure

Realtors like to pressure their clients into buying these properties so that they can make a quick sale. This is not always in the best interest of the buyer.

Should I buy a foreclosure in Edmonton, Canada?

It is not alway a bad idea to buy a foreclosure in Edmonton, you just have to be very careful and do your due diligence. Call me first, even if you have a realtor for some advice. I have done this many times and would be happy to guide you in the right direction, or help you finance your purchase.

Where can I find foreclosure listings in Edmonton?

Every agent will tell you that they can send you foreclosures, but not all can. I can introduce you to an gent that specializes in foreclosures so that you can get all of the right information.

Do you Pay GST on a foreclosure house in Alberta?

There is no get payable on a foreclosure home in Alberta. GST are for new builds.

Sean Rampersaud Edmonton Mortgage Broker

Sean and Radika Rampersaud are a family team of Edmonton mortgage brokers. They specialize on helping their clients to get the lowest mortgage rates in Canada by leveraging high volume and multiple lenders. “We want to help our clients not only to get the best rates, but also to make the home buying process easier.”

Radika Rampersaud Edmonton mortgage Broker

Have One Of Us Call You Now For Free Or Contact Us Now At
780 278-4847

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11 Common Reasons For Foreclosure In Canada

11 Common Reason People Go Into Foreclosure in Canada

We love to help people get out of foreclosure on their homes, and there are 9 common reasons people go into foreclosure.

It is not the same for everyone, every circumstance is different. The one common thing about going into foreclosure is that it is a really shitty feeling. People tend to feel distressed and lost when they go into foreclosure, it is important to get the right type of advice or you can get sucked into paying massive penalties.

I have seen time and time again, financial institutions  taking advantage of people that are under foreclosure. They will sell their properties from underneath them, and charge them massive fees until there is literally no equity left. They make the home owner responsible for everything including legal fees and more.

I am here to tell you this….there are better options for you. I am writing a series of articles about foreclosures and B lenders so that you can understand the ins and outs of the process, as well as the potential risks there are in the foreclosure process.

We know that you are not bad people, and that circumstances can push almost anyone into foreclosure. Our goal is to help you stay in your home and pay it off as you probably planned for originally anyways.

Edmonton and other areas in Canada have been under stresses in the real estate market, coming from all over the world. We are dealing with inflated prices due to foreign investment, oil patch problems, trade disputes and outside government sanctions. This can be really stressful and put many people in financial hardship.

Not only is it directly affecting our pockets, but it is also affecting our healths and relationships.

In most foreclosure situations here, it is not because the home owners are dumb or irresponsible. They are just affected poorly, and it can happen to any of us including myself.

When I was very young, my family went through the foreclosure process because of a really bad divorce. That is why we want to be your foreclosure support. I am willing to give free foreclosure advice to any of you that want to talk.

Now that being said, I am not a foreclosure lawyer or trustee. I am a mortgage broker that specializes in foreclosures. Please let me know if I can help in any way. My contact information, as well as some links to other foreclosure articles are below.

11 Common Reasons People Go Into Foreclosure in Canada

  1. Divorce

This is one of the most common reasons people in Canada go into foreclosure. I work currently in the Edmonton market, however I serve people Canada wide. In my market alone there are hundreds of foreclosures every year because of divorce.

Sometimes during a bad divorce, accountability is passed on to the other partner and vice versa and the bills just don’t get paid. If you miss several payments, the banks will put you in foreclosure and this is very hard to repair.

2. Job Loss

The oil sands are running at low volume at the moment and a lot of people have lost their jobs in Canada. Large companies are starting to outsource a lot of their products to foreign countries and some countries are not trading at as high of volumes with Canada.

This has put a lot of people out of work…yeah it sucks. On the bright side, we do have lenders that consider this, and will work with you to not only help you get out of foreclosure, but also to help you get a job….believe it or not. Ask me how.

3. Military Relocation

When a person has had consistent spending habits for years, and they are relocated to a market like Edmonton, Vancouver, Calgary or Toronto. Their cost of living will go up. Some people forget to take this into account, and end up in foreclosure.

We may be able to take out some money from your current mortgage to pay off high interest loans, so that you can get back on track.

4. High Student Loan Debt

The great thing about student loans is that you don’t have to pay them for a few years and during your schooling. The old mortgage rules allowed banks to not have to consider someones student loans in their debts if there is no payment. Now they do. But all these people who qualified years ago, do not qualify now.

Some of you in this situation, may have a bank or lender that will not renew the mortgage. You need to port that mortgage or (switch) to another lender.

5. Buying too many Toys

I live in Edmonton, Alberta close to the oil sands. A lot of people made a lot of money many years ago and chose to buy high end vehicles mixed with trailers, motorcycles and more. Their payments are really high and now that the jobs are not as abundant and pay less, they can’t make their payments.

If you are in this situation, you need to consolidate before it is too late. We can pull some money from the house at low interest and pay off some high interest debt.

6. Depression and Anxiety

You never know who has depression or anxiety. But when this happens, people tend to operate at a much lower level. You can read more about anxiety here.

Some people just want to sleep and will call in sick often to work. Eventually their workplaces catch on and they end the employment. If you are in this situation, don’t let yourself get behind.

You need to get help. I can try to make your payments lower for you by extending the amortization. I may also be able to get you one year worth of payments paid ahead of time and build into a second mortgage. Ask me about these kinds of details. I just did one for a lady in distress.

7. Overspending

Yes people do this all the time. Often it happens with people that are new to credit. They spend too much initially and before they know it they are drowning in debt. We can try to pull money out of the house in this case to pay things down.

8. Health

If you become ill the last thing on your mind is paying the mortgage. Many lenders have programs/insurance for this. You may have this insurance already and not even know it!

9. Buying at the wrong time

If you bought at a high time and then find yourself in a tough financial situation, you cannot sell the house because there is not enough equity. You will just have to pay the bills. We may be able to refinance it and make your payments smaller.

10. Substance abuse

Drugs and alcohol are a major factor in why some people loose their homes in Edmonton to foreclosure. This is happening all over Canada. I had a young man that inherited a home from his grandparents. He ended up getting all kinds of loans on the house to fuel his party habits and ended up loosing the house.

11. Death and Probate

This is another distress situation and the reason why I always suggest that people get mortgage life insurance. If someone dies and they are the main income earner, you could go into foreclosure. As a matter of fact even if you are the main income earner, and your spouse or child dies. You may go into depression and avoid making money.

 

Sean Rampersaud Edmonton Mortgage Broker

Sean and Radika Rampersaud are a family team of Edmonton mortgage brokers. They specialize on helping their clients to get the lowest mortgage rates in Canada by leveraging high volume and multiple lenders. “We want to help our clients not only to get the best rates, but also to make the home buying process easier.”

Radika Rampersaud Edmonton mortgage Broker

Have One Of Us Call You Now For Free Or Contact Us Now At
780 278-4847

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What Is A Mortgage Broker? Do I need One? Edmonton Mortgage

What Is A Mortgage Broker? Do I need One? Edmonton Mortgage Brokers

So you are shopping for a house, there is a lot of new things you are learning about. One of the most important things you need to make a decision on is the mortgage you get.

You may not realize it yet, but making the right mortgage choice now is going to impact how fast you are able to reach financial freedom. Please make sure you are spending the time and effort on this part of the process, understanding the ins and outs of mortgage options before you buy.

You may have gone to your bank and gotten “pre-approved”. This is a statement banks love to use, and what most people don’t realize is that this approval is conditional on many things. The bank can decide at any moment “nah that deal doesn’t work for us”…… Shit then what do you do? If you are not careful, you can be sued if you cannot get your financing in place.

Did your agent coach you about this? Or are they going by what you told them…I am pre-approved. Most realtors will assume that you have done your due diligence, and that your financing is all good. Why else would they spend the time to show you all 50 houses you looked at before you made an offer?

Should I go to my Bank to get a mortgage?

During the process of purchasing you had many choices, should I hire an inspector? When you did, did you pick the cheapest? Or would you want to choose the best, so that you will not have problems down the line? I think everyone in their right minds would choose someone good, as it can save them thousands in the future.

Which brings me to my point, many people just go to their banks and deal with a general agent in the bank to get a mortgage. The problem with this is that these people, are general. They do not specialize in one specific area, they do investments, rasp’s, tax free savings and much more. How can they really focus on your best interest?

Further to this point, each bank has a limited amount of products and services. Meaning they can only give you what they have. The terms and conditions that they never go into detail on may not fit your goals and dreams.

You need to hire a professional….You need to hire a mortgage broker.

What is a Mortgage broker?

A mortgage broker is a person that deals specifically in mortgage and mortgage products. They specialize in this area and are by far the most experience and knowledgeable professionals for your mortgage advice.

Are all mortgage brokers the same?

Hell no! The mortgage broker course in Canada is not very long and as long as you have a high school diploma or ged you can get the certification. This is a high turnover industry with most people not making it past their second year in the business. Make sure you hire a broker that knows what they are doing.

My bank has mobile mortgage specialists. Should I deal with them?

In my opinion the mobile mortgage specialists at the bank are limited to their product only. I prefer dealing with broker that work with many banks and have access to multiple options of products.

Further to this the mobile specialists are generally not the best brokers in the industry. The best brokers are private and commission based like myself. The banks pay their mobile specialists much less that they pay independent brokers.

Do I have to pay the mortgage broker?

No for most deal you do not have to pay any fees to a mortgage broker. They are paid by the banks.

Do they increase the rate to build in their commission?

No they do not increase the rate for this. Mortgage brokers send higher volumes to the banks and the banks give them discounted rates as reward.

Can I get a lower rate on a mortgage through an Edmonton Mortgage Broker?

Yes most of the time a good mortgage broker can get you a lower rate than the bank.

If I go through a mortgage broker, can they put my mortgage through my bank?

This depends on if your mortgage broker is signed up to deal with your bank. Each bank has minimum volume goals the broker must send them before they will deal with them.

Who is the best Edmonton Mortgage Broker for me?

The best Edmonton Mortgage broker for you is someone who will listen to your wants and needs and recommend a solution based on you. Before I offer a mortgage to anyone, I will do a needs analysis with them and then recommend solutions for them.

Can a mortgage broker save me money?

A good mortgage broker can save you thousands in penalties and interest payments.

Sean Rampersaud Edmonton Mortgage Broker

Sean and Radika Rampersaud are a family team of Edmonton mortgage brokers. They specialize on helping their clients to get the lowest mortgage rates in Canada by leveraging high volume and multiple lenders. “We want to help our clients not only to get the best rates, but also to make the home buying process easier.”

Radika Rampersaud Edmonton mortgage Broker

Have One Of Us Call You Now For Free Or Contact Us Now At
780 278-4847

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Who Is The Best Private Mortgage Lender In Edmonton?

Who Is the Best Private Equity Lender for Edmonton? Foreclosure Help

I have been working with private lenders in the Edmonton and Alberta Market place for over 10yrs. My clients often ask me who is the best private lender in Edmonton? That question has to be broken down into many components because each private lender is good in different situations.

Some of them will lend to self employed people while others will not. Some private lenders will even lend to you when you do not have a job or any income at all!

In all of these scenarios, private lenders are always for equity situations only. Meaning to deal with a private lender or a B lender, you will have to either have a lot of money or have a lot of equity in your property.

I recently had the pleasure of dealing with many client scenarios that we used a Private lender or a B lender. Those lenders were able to secure high risk loans for my clients in exchange for a higher interest rate and fees.

The higher interest rate is because these mortgages are higher risk! These lenders are the only ones that will lend in foreclosure and bad credit situations as there is high risk that the owners could default on their mortgages as they have done in the past.

So how do you choose which private equity lender to go with? You really have to understand the ins and outs of each of these companies and what they will accept. You also want to make sure you don’t get over fee’d for this transaction. Some private lenders will try to milk you dry.

CALL ME! I will make sure you get the best of the best and will negotiate with the lender for you.

5 Types of Private Mortgage Lenders in Edmonton. Foreclosure Help

There are 5 types of B Lenders or private mortgage lenders in Edmonton

  1. The Investors

The Investor is a private person with a lot of money. They want to invest their cash into a safe investment and receive a reward of high interest. They will usually have high fees and are reserved for specific situation.

2. The B Lender

The B lender is very similar to the MIC. However the B lender will be investing their own money. They are usually a corporation with pretty strict rules.

3. The Mortgage Investment Corp (M.I.C)

Mortgage investment corps are the most common B lender. They will get a group of investor together and will invest their money for a guaranteed rate of return to the investor.

4. The Banks B Division

Some banks willl have a B division, the interest rates are usually pretty good through these companies and they really want to help you.

4. The Equity Bank

Equity banks usually started out as B lenders and grew to bank status. If you can get in with a B lender, that is usually the best case scenario.

Common questions about B lenders and Private mortgages

1. My house is paid off, can you give me a loan?

Yes I can get you a loan if you have your property paid off, even if you don’t have a job at the moment! We have solutions for all types of situations.

2. My house is in foreclosure can you get me a mortgage?

As long as you have enough equity, I can get you a mortgage to get you out of foreclosure. I have helped hundreds of people in this exact type of situation.

3. How do I save my house from foreclosure?

We use many strategies to save your house from foreclosure including using current equity, switching the lender, getting new appraisals, doing improvements and more.

4. I owe money to CRA, can you get me a mortgage?

Yes we have lenders that will lend even if you are currently owing money to the government.

5. I Have bad credit, can you get me a mortgage on my house? Or a Loan?

Yes I can as long as you have a downpayment.5

Sean Rampersaud Edmonton Mortgage Broker

Sean and Radika Rampersaud are a family team of Edmonton mortgage brokers. They specialize on helping their clients to get the lowest mortgage rates in Canada by leveraging high volume and multiple lenders. “We want to help our clients not only to get the best rates, but also to make the home buying process easier.”

Radika Rampersaud Edmonton mortgage Broker

Have One Of Us Call You Now For Free Or Contact Us Now At
780 278-4847

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What is a B Lender, and How Can They Help Me?

What is A B Lender? Edmonton Mortgage Broker

What is a B Lender, and How Can They Help Me?

B Lenders were created to fill gaps in the mortgage market. They are for special situations where someone doesn’t fit into the standard banks very strict mortgage rules.

In Edmonton there are several B lenders that are available to you all with their own rules and regulations. A good Edmonton mortgage broker will understand the niche products that each of these lenders have so that they can put you with the right fit to get your mortgage done.

Generally B lenders are for people that have a lot of equity or cash, you cannot put down a small downpayment and work with a B Lender. They use your equity or property as collateral for a loan or mortgage. This is how they protect themselves.

6 Situations you can use a B Lender for In Edmonton

  1. Foreclosure

If your home is getting foreclosed on for any reason, you may be able to pull out equity from your home to get caught up on bills. Foreclosure is one of the biggest reasons B lenders are used.

2. Bad credit Large Downpayment

When you have bad credit, you can’t go to the bank and get financed. You will need an alternative. I get a lot of clients that inherit money and they want to put it into property before they blow it all. B Lenders are perfect for this.

3. Too Many properties, large downpayment

Investors sometimes have too many properties for a regular bank to finance, but they need just this one more. B lenders in Edmonton can help with this as they allow you to state your income and allow you debt ratios to be higher than standard banks.

4. Flipping houses

If you flip houses a b lender may sometimes be your best bet to get financing. They are fast and efficient. They allow you to pay it off anytime you want.

5. Buying a business using your equity

I have many clients that are buying businesses or franchises using the equity in their homes. A B lender is best for this, because a lot of times they are not working another job. Therefor they cannot qualify for other loans because they are not currently working.

6. Business for self large downpayment

If you have a new company, it is really hard to get mortgage financing. However if you have good equity or cash a B lender will lend you money for your loan.

7. Consolidation bad debt

Do you owe revenue Canada money, or high interest credit cards? Then a b lender is where you would go for your financing.

Common questions about B lenders in Edmonton

  1. How much are mortgage rates through B lenders?

Rates will range from 3.39% all the way up to 11% depending on the situation. If you are already in foreclosure it can be on the high end of the spectrum.

2. Are there fees when you borrow through a B lender?

Yes there can be fees involved, Usually 2% of the mortgage amount.

3. Where do B lenders get their money from?

B Lenders get most of their money from private investors.

4. Can I get approved through a b lender?

Call me!

5. Will a B lender approve me if I have bad credit?

Yes a b lender may approve you only if you have a large downpayment.

Sean Rampersaud Edmonton Mortgage Broker

Sean and Radika Rampersaud are a family team of Edmonton mortgage brokers. They specialize on helping their clients to get the lowest mortgage rates in Canada by leveraging high volume and multiple lenders. “We want to help our clients not only to get the best rates, but also to make the home buying process easier.”

Radika Rampersaud Edmonton mortgage Broker

Have One Of Us Call You Now For Free Or Contact Us Now At
780 278-4847

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What Should I Do When I Get A Foreclosure Notice In Edmonton?

What Should I Do When I Get A Foreclosure Notice In Edmonton?

Getting a foreclosure notice can be the worst feeling you can have. First you bought this home you dreamed of owning scott free and now you are in a position where you can no longer make the payments and the bank wants to take it away from you.

You think to yourself; how the hell did it come to this? I am embarrassed and I don’t know what to do. What am I going to tell my kids, my friends, my family.

You are not alone…. In Edmonton hundreds of families have to deal with this exact situation every year. Although the oil patch hasn’t dried up on us, many jobs have and we need to push through in order to move forward. Hopefully the pipeline is approved we say.

Right now Edmonton real estate is at a pretty low value and many families are unable to save their homes from foreclosure. I hope I can help, I am writing a series of articles for people in your exact situation.

Don’t worry, it is not the end of the world. Check out these other foreclosure articles for more information on what you can do to get out of foreclosure in Edmonton.

What should I do when I receive a foreclosure notice in Edmonton?

1. Don’t wait to act

The longer you wait, the more back payments and fees you will get tacked onto the principal amount. I have a client right now that has 36k in back payments at high interest. On top of that the current bank would not finance them any longer. They were lost and we were able to help them.

2. Get a payout statement

You Need to know exactly what you owe so that an Edmonton mortgage broker can get you financed by a different lender. They may be able to take some more money out of the houses equity for you to live on until you are back on your feet.

3. Try to make Payment arrangements

If you have had a good history of payment some banks may give you a grace period and tack it onto the back end of your mortgage term. This means your amortization period (time to pay off) will become longer. This is best case scenario

4. Refinance/extend your amortization

Say your house is worth 300k and you owe 100 k. If you refinance it you can pull out 150k out of the current house and get it financed elsewhere. Therefore paying back what you owe and having more cash in hand to pay out other debt.

5. Get a Home Equity Line Of Credit

Having a home equity line of credit, or HELOC is a major asset. A good mortgage broker will get you a mortgage in the first place with one of these built in. So that as you pay down your mortgage, more line of credit becomes available to you.

5. Debt consolidation

Consolidate all of your credit card debt etc in a home equity line of credit or unsecured line of credit so that the payments are low. Maybe having the monthly debt lower will make it easier to make your payments on time.

6. Get a new Job

Don’t let your ego be the reason you lose your house. I see too many people from Edmonton come into my office and tell me they are pipeline this and pipeline that. The fact is if it is not paying the bills, then it is not enough.

7. Get a mortgage broker

We can help you navigate the process and there are no upfront fees. We are paid by the banks to do a service for you.

8. Consider bankruptcy

If there is no equity and a lot of debt, going through the bankruptcy process may be your best option.

9. Sell your home

If the house is just too much, try downsizing or renting.

Whatever you decide to do we are here to help you. Please call us very early in the process so that we can get a jumpstart on fixing your situation. There is no reason to be embarrassed as we see this and fix this type of thing for people every day.

 

Read The Article 7 Secret Tips To Get Out Of Foreclosure In Edmonton

 

Or 12 Secret Ways To Save Money On Your Next Edmonton Mortgage

Sean Rampersaud Edmonton Mortgage Broker

Sean and Radika Rampersaud are a family team of Edmonton mortgage brokers. They specialize on helping their clients to get the lowest mortgage rates in Canada by leveraging high volume and multiple lenders. “We want to help our clients not only to get the best rates, but also to make the home buying process easier.”

Radika Rampersaud Edmonton mortgage Broker

Have One Of Us Call You Now For Free
Or Call Now 780-278-4847

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Understanding The CMHC Home Buyer Incentive in Edmonton

9 ways the CMHC Home Buyers Incentive benefits Edmonton Buyers

 Again we have done the research for you and picked holes in the new CMHC Homebuyer program for Edmonton Residents. Read on to learn more about this awesome program and contact us with any questions you might have.

The Bank of Canada has announced in their 2019 Federal Budget! They have proposed that they will be giving First Time Home Buyers an Incentive of up to 10% of their Purchase Price. Below i have outlined some of the most popular FAQ’s in regards to this drastic improvement to the Mortgage Rules and Guidelines. 

9 Ways the CMHC Home Buyers Incentive Benefits Edmonton Buyers

1. Can i afford to buy my first home in Edmonton? 

The Federal Government of Canada and the CMHC-The Canadian Mortgage Housing Corporation, will be helping first time home buyers in Edmonton and throughout Canada to lower their monthly mortgage costs. This is huge, as they have never given buyers this option previously. Applicants will also need to pass the Federal Stress test to ensure you can keep up with your monthly debt payments. 

2. How much downpayment will you need to put down?

The minimum downpayment you still need to put down will be 5% of the Purchase Price of the home. The higher the downpayment, the lower your CMHC/Insurer premiums will be. These insurance premiums are included into your monthly mortgage payments. 

3. How much will i receive from the Government as an incentive?

5% Incentive if it is an Existing homes or 10% If it is a Newly built homes throughout Edmonton and surrounding areas

4. How does the government give the funds? 

The incentive that they are going to be providing will be given to applicants as a reduction in their Mortgage amount. For Example

If you are buying a home that is lets say:

Purchase Price $300,000 Residential Home in Edmonton 

5% Down  $15,000

Mortgage Amt  $285,000

10% Incentive -$30,000 Newly Built Home in Edmonton** 

**New Mortgage Amount $255,000!

6. How do i know if i qualify?

The one thing i always suggest prior to shopping for a new home, is to get pre approved.  By doing this very important step first, you are then sure of exactly how much you qualify to buy. I can use your income, monthly debt payments and the correct calculations to ensure you are pre approved for the right amount. The Government incentive is only offered to House hold incomes totalling less then $120,00.

7. Do i have to Repay the Incentive?

Eventually you will have to repay this and most likely at re-sale of the property, but the Government is still finalizing these details as it is unclear at the moment how applicants would pay this back and when. 

8. When can i take advantage of this Home Buyer Incentive?

The government is hoping September of 2019 or Fall-this will be finalized at a later time. 

9. Can i still take advantage of the RRSP Home buyers Plan and the Incentive programme?

YES! This is huge for all the buyers out there who have been saving up their RRSP’s and wanting to use them at this time would be extremely beneficial. THE RRSP Home Buyers Program lets buyers use their RRSP’s as their downpayment -up to $25,000-with NO PENALTY as long as they pay back the RRSP’s within 15 years! With these changes to the mortgage here in Edmonton and throughout Canada, the government is hoping to increase that amount to $35,000. In result of this, the Canadian government is hoping that this change along with the  Incentive program will help increase housing demands throughout Edmonton.

Sean Rampersaud Edmonton Mortgage Broker

Sean and Radika Rampersaud are a family team of Edmonton mortgage brokers. They specialize on helping their clients to get the lowest mortgage rates in Canada by leveraging high volume and multiple lenders. “We want to help our clients not only to get the best rates, but also to make the home buying process easier.”

Radika Rampersaud Edmonton mortgage Broker

Have One Of Us Call You Now For Free

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7 Secrets Tips To Get Out Of Foreclosure In Edmonton

7 Ways to Save Your Home From Foreclosure in Edmonton

Over the years many of our customers in Edmonton have had financial struggles, many of which have faced foreclosure. Foreclosure is when a home owner with a mortgage with a financial institution or bank is unable to make their payments, and the bank takes away the home.

There are many strategies that I have personally advised over the years that have saved my customers from having to loose their homes. In this article I will share many of the secrets you need to know on how to save your home from foreclosure. Also please feel free to call me so that I can give you some straight up advice with no judgement. We love to help people and understand that Edmonton and actually most of Canada’s economy is not great right now.

You are not alone, there are thousands of people right now in Alberta that are in your shoes. I want to help you all if I can.

We are Edmonton mortgage brokers that specialize in foreclosures, specifically getting people out of foreclosure.

Tips to Get Out Of Foreclosure in Edmonton

  1. Negotiate a deal with the financial institute

The bank does not want to take away your property, it creates a lot of work and expense for them. They have to go to court, get lawyers involved etc. Try to call someone from their lending dept preferably a manager. They may work out some payment arrangements with you to get you over the hump.

2. Sell the property

If the bank is not working with you, it is a good idea to sell the property and pay them out. If you wait too long on this, your amount owing to the bank can grow to a point where you will not be able to recover. Sell it before it is too late. When a house is in foreclosure in Edmonton there will be many high fees involved as well.

3. Refinance the property with a B Lender

B lenders are a great option if you have equity in your home. They can finance you short term, giving you time to repair your credit and situation.

4. Consolidate all of your debt

Consolidating your debt on a line of credit or home equity line of credit can bring down your overall payments.

5. Sell household goods or toys like campers to make the payment

Albertans love their toys. Sometimes too much.

6. Switch Banks

If you have not totally destroyed your credit, it is possible to switch banks before the foreclosure. Most banks will not fund someone currently under foreclosure so make sure you d this early.

7. Rent the property out

Don’t let your ego get in the way. If you really want to save your property this is a good option. Have someone else paying the bill until you are back on your feet.

Common Question About Edmonton Foreclosures

  1. Can the bank kick me out of my house?

Yes the bank can have you removed from your property if they have given the correct notice. This does not happen right away.

2. Will the bank give me any money when they sell my house?

There will be many fees that add up including legal fees. They will give you money in the end if there is any left after the fees.

3. Are there large fees when my house goes into foreclosure?

Yes there are many large fees, and they can charge them all to you.

4. Do I need a lawyer if I am getting foreclosed on?

No the bank hires the lawyers and charges you for it.

5. I have bad credit, can I still save my house?

Yes we can try to get you finance with a B lender or a private lender. Call us if you find yourself in this situation for a free consult.

6. Who is the best B lender in Edmonton?

The best b lender is whoever gives you the best rate. We shop them all for you.

7. What is a high risk lender?

Someone who lends based on equity usually for higher interest.

8. Do I need an appraisal in I am refinancing my house?

Yes you will need to get an appraisal from a lenders approved list.

Sean Rampersaud Edmonton Mortgage Broker

Sean and Radika Rampersaud are a family team of Edmonton mortgage brokers. They specialize on helping their clients to get the lowest mortgage rates in Canada by leveraging high volume and multiple lenders. “We want to help our clients not only to get the best rates, but also to make the home buying process easier.”

Radika Rampersaud Edmonton mortgage Broker

Have One Of Us Call You Now For Free

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12 Secret Ways to Save Money On Your Next Edmonton Mortgage

12 Secret Ways to Save Money On Your Next Edmonton Mortgage

Are you buying a home this year? Well we have gathered together the top 11 ways for you to save money on your next mortgage! Buying a home & Getting a mortgage is an extremely important step in your life. Why not take some extra steps to ensure you are saving the most money! 

 

1. Use a mortgage broker.                                                                                                                                                                                  

 It’s very easy to get information from the internet, friends and family but not all mortgage rules and rates can apply to you-every mortgage is unique. By using a mortgage broker, you can utilize their ability to shop over 50+ Canadian banks to get you the lowest rate out there and only checking your credit once! Using a mortgage broker here in edmonton can give you an exact idea of what you can afford, Guarantee a rate and explain all the costs involved with the home buying process

2. Put 20% Down!

Conventional Mortgages are a great way to save money long term. Your mortgage will be conventional if you are putting 20% Down or more. This means that you would not be paying the CMHC Insurer fee’s. These premiums can range anywhere from 2.80%-4.00% Of your loan amount. This will be dependent on how what your purchase price is and how much downpayment is being put down.

3. Shorten your amortization!

Amortization is usually set at 25 or 30 years, This is the total length of time it would take an average person to pay off their entire mortgage. By cutting it down to 15 or even 20 years, this can reduce the total amount of interest that you would normally with a 25 year amortization

4. Getting an inspection on your new home.

Once your financing is complete, it is highly recommended that you complete an inspection of your home with a qualified Inspector. This can range anywhere between $300-500. Although this may sound like a lot, this can save you THOUSANDS of dollars on any deficiencies, issues, mold and anything that could be wrong with the physical structure of the home.

5. Ask your realtor or mortgage broker for a referral for a Lawyer.

Realtors and mortgage brokers work with Law offices on a regular basis and have built strong relationships with real estate lawyers. In return, some lawyers can give a discount on legal fee’s for your mortgage closing process. Sometimes you can save anywhere between $200-$500 in legal expenses.

6. Using a realtor to purchase a new construction home.

This is a hidden tip that most buyers first or 2nd time around are not aware of. Visiting show homes is fun and exciting. You walk in and out a row of them and check out samples of what your new home could look like. What most buyers don’t know, is that By using a realtor to purchase a home through a builder can save you tons of money!! Show homes usually have the price advertised and most buyers walk in, get excited after walking in and have NO representation to assist in the negotiation. So most buyers end up paying whatever the actual purchase price is and are unaware that there is always room to negotiate. SO the next time you check out a show home, USE A REALTOR! Realtors do not charge fees for buyers so having the real estate agents represent you help in the negotiation and also are on your side when it comes to the fine print when having an agreement with a builder.

7. Get Title Insurance.

This will protect you from any surprise and unpleasant revelations about your property’s history that could arise in the future. This would be obtained through your lawyer at closing and can cost anywhere between $200-250.

8. Are you an Alumni from a local Edmonton College or University?

Ask me for information in regards to First Time home buyers who have recently graduated from Post Secondary Education. We provide discounted mortgage rates that can save you money on interest throughout the term of your mortgage

9. Get referred to an appraiser.

Sometimes your mortgage may require an appraisal to be completed. The best way to save money on an appraisal is to ensure your financing is 99% Complete. If for any reason your income or downpayment does not get approved, your appraisal should be the last thing you check off of your financing list to ensure you are not our of pocket for the cost of the appraisal. So before you go ahead and pay for an appraisal, ensure your income & downpayment and all other conditions have been met.

10. Get a rate hold

Securing your mortgage rate up to 4 months! By getting pre-approved and securing your mortgage rate prior to purchasing a home, can save you hundreds of dollars. Here in Edmonton, the housing market is constantly changing-and along with that so are rates. So by speaking to us, you can secure a low rate for up to 4 months to ensure that if you are planning on buying the next few months, whatever may happen to the market, you can feel safe that your rate is lower than what the rate could be 4 months from now.

11.Keep your debt load low

If you are planning on purchasing a home in the future, keep your monthly debt loads low. Try to pay off your highest interest balances first. By doing this, you have a higher chance of qualifying for a LOWER mortgage rate. Sometimes if you carry a high debt load balance, your mortgage can still get approved but your mortgage rate may not be the lowest due to the HIGH credit card, line of credit and loan payments.

12. Make Bi-Weekly Payments

Making bi-weekly payments will help you make and extra couple of payments per year resulting in you paying down the mortgage faster!

Common Mortgage Related Questions

  1. What banks have the best mortgage rates in Edmonton?

Different banks run promotions at different times depending on if they are hitting their annual targets or not. At every time of year different banks and financial intstitutions will run promo’s on their rates.

If you are looking to find out who is having a promo give us a call at 780-238-2957, we can let you know. Often times it may not even be a bank, it could be a mortgage financial institution. We can let you know. Saving on the rate means saving thousands of dollars on you mortgage!

2. How much do I have to pay to use a mortgage broker in Edmonton?

Most mortgage brokers charge nothing for a regular transaction.

We are paid by the banks, and the best part is we can get you a better rate than your bank can!

4. Can mortgage brokers in Edmonton get lower rates than banks?

Yes, often times we can get much better rates than the banks. We send millions of dollars worth of transactions per month to them and they give us a discount on the rates.

5. How can I get the best mortgage rate in Edmonton?

Call us and let us shop around for you, we guarantee the lowest rate!

The just of it is, our brokerage is the largest mortgage brokerage in Edmonton. Combined they send millions of dollars worth of transactions to multiple banks every month. These banks fight for our business by offering us special rates.

6. How can a mortgage broker get me a lower interest rate in Edmonton?

Mortgage brokers pit the banks against each other to earn your business. A good broker will send your application out to many different banks and then get them to offer you a rate.

Your rate will depend on how great of a client you are. What is your credit like? How is your job stability? These are all things the banks will be looking for.

 

Buying a home is one of the most important and significant financial transactions you can make. Don’t do it alone, Contact me for your mortgage approval process and let me help you go through the process together. I can share my experience and knowledge that i have gained from the last 10 years in this role, and ensure i am there every step of the way. 

 

Sean Rampersaud Edmonton Mortgage Broker

Sean and Radika Rampersaud are a family team of Edmonton mortgage brokers. They specialize on helping their clients to get the lowest mortgage rates in Canada by leveraging high volume and multiple lenders. “We want to help our clients not only to get the best rates, but also to make the home buying process easier.”

Radika Rampersaud Edmonton mortgage Broker

Have One Of Us Call You Now For Free

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