1 Sad Story of a New Immigrant Home Buyer
This is a real situation which shows how lack of appropriate knowledge and understanding of the home purchase process, new immigrants first time home buyers fall into a trap for which they pay dearly.
Jatinder Singh new immigrant home buyer, self employed and very pleasant man, is referred to mortgage delivery guy for a mortgage by a good friend of mine. He produces an accepted offer on a property in Brampton for $1,970,000. The property comes with few acres of land and a 3 bedroom house on the corner of a major intersection. Offer has been fully accepted with $125,000 deposit and financing conditions waived.
Jatinder chills & pridefully continues telling the potential in the property and conversation continues…
Jatinder explains this property has lots of potential due to the location of the property. If he wants he can change the zoning and convert it in to commercial some time in future. He is very excited and optimistic about this big undertaking. He plans to get 60% loan to value first mortgage, with 40% down payment coming from a sale of his family home in India.
Jatinders credit, income and down payment profile looks relatively fine. All available source documents are collected upfront to initiate process of Mortgage approval. After finding an interested lenders, all documents on hand were submitted upfront to the lender.
Same day, I receive a phone call from under writer stating the property is not worth the price and they cannot fund the deal. Lender wanted to see a MLS listing on the property.
Here is when the deal gets interesting!
Client said no comparable on the property were shown and as per real estate agent MLS listing cannot be produced as this is an exclusive listing and excuses continues…
You Guessed it Right...
No one wants to be in this position let alone new to a home buyer new to Canada buying their first home. The property Jatinder is buying is not worth its price.
Without fully understanding the consequences Jatinder waived all the conditions and made his offer unconditional. After realizing the extent of the problem and looking into all the options, Jatinder decided not to proceed with this deal.
He informed vendor that he wants to withdraw his offer. Luckily, vendor allowed Jatinder to withdraw his offer but will only refund $85,000.
Good Deal or Bad Deal?
All first time home buyers new to Canada or born in Canada, should do their due diligence before writing an offer on their first home.
There is no such thing as a mortgage or finance product that is ideal for all home owners. Every person has a unique situation that comes with a specific set of requirements and needs. And, the mortgage options that you are presented with must reflect your specific situation.
Here are 5+ options that you can leverage to solve your mortgage problem:
- Cash Back mortgages (aka No Down Mortgages ) where the bank pays your part of the down payment.
- Purchase plus Improvement and Refinance plus improvement – Banks pay for your renovations on a new purchase and refinance as long as the improvements increases value of your home.
- Secured Line of Credit instead of a mortgage
- Mortgage while on Maternity leave where you can use pre maternity Income during maternity leave to qualify for an mortgage
- New Immigrants are offered No Credit Mortgages
- Equity Mortgages
- And the list goes on and on
We have access to products and lenders which understand your needs and are willing to work with your unique situation. With our years of experience and understanding of mortgage rate options only after we understand your specific needs and requirements.
We will help you determine the best mortgage product even with bad credit, no credit and amortizations. If you want unbiased mortgage options, then the Mortgage Delivery Guy is the person you need to speak with.
We are not aligned with a specific bank or mortgage product. Therefore, our focus is solely on what is the best fit for your unique situation
Don’t hesitate to contact Mortgage Delivery Guy, if you have any questions about mortgage or real estate investment. If we are unable to help you, the least we can do is to direct you to right real estate affiliate that can help you.