Request: Refinance out of an existing 9% private lender into a lower rate lender to improve cash flow and reduce interest costs. This to be done with a stated income applicant who has 2 BFS entities AND a rental portfolio of 27 houses all presently mortgaged with A lenders (banks and credit unions)
Challenge: requested 75% LTV for a stated income rental program. Large real estate portfolio way over most A lenders allowance. Stated income on financials and personal tax returns that only show 30K net income. Finding approval terms that benefit the mortgage from being moved to a new lender. Required rate, fee and legals required to be a lower APR than existing private who will renew at no further cost.
Results:
- Lender was sourced out and approval issued on the SAME DAY Plan B commenced working the application
- The referring DLC agent simply provided Plan B a hand written DLC application along with some supporting documents.
- Plan B communicated with the client directly to complete the application process and assure an approval should be obtainable
- Original approval was for 70% LTV …. Appraisal came in at a lower expected value which increased the final LTV to 75%
- Lender agreed to honour the original approved amount based on Plan B’s strong relationship and high volumes
- Client very pleased with the approval and is now set up to save over $30,000 in the 1st year alone. Savings in the form of reduced monthly payments and interest rate charges
- Referring broker to receive a commission for $2,000.00 which is likely 12bps higher than if doing the deal himself.