Did You Know In Some Cases You Can REFINANCE Up To 95%

2. b
CASE STUDY:
MATRIMONIAL BREAKUP ELIGIBLE FOR 95% LTV
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find knowledgeable and
experienced Mortgage Specialists
with an impressive range of
mortgage solutions available to
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Joseph and Lianna decided to end their marriage. They decided that Lianna, a Registered Nurse,
would get the matrimonial home and Joseph, who owns his own business, would be paid out by the
couple splitting the equity of their home minus any joint debts. GLM Mortgage advised them that
Joseph and Lianna could increase the mortgage to 95% so they could do this. It was crucial for
GLM Mortgage to connect with the divorce lawyers to ensure the separation agreement was written
up properly in regard to the division of the home’s equity and what it is to be used for. Joseph and
Lianna didn’t know how they would be able to get a mortgage based on 95% loan to value. They
didn’t know what to do financially with their difficult situation. But GLM Mortgage did!
Value of Home $750,000
Requested mortgage amount $712,000
Loan to value 95%
Documentation - Legal separation agreement which clearly identifies
what the equity will be used for (paying out the spouse or
debt reduction)
- Private sale (no Realtor involved)
- Need offer to sell from Lianna and Joseph (sellers) and
then offer to purchase to Lianna (buyer)
- Full appraisal to determine how much equity is
available.
- Current mortgage statement
- Standard Income documentation
Credit Score 682
Total Debt service ratios 41%
Mortgage solution Payout would be based on the amount of equity in the
home. Because this situation was based on a
matrimonial split, the Mortgage Insurer (CMHC) will allow
refinance up to 95%. Lianna will have to income qualify
by using either her own income or using a co-signor.