MORTGAGE SYMPOSIUM

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MORTGAGE SYMPOSIUM

• June 30, 2009
• ECCB Headquarters
• _at_ 5.30 p.m.

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MEETING YOUR BANKERPERSONAL APPLICATION

• Latest Pay Slip/Job Letter
• 2 Pieces of Picture identification
• Proof of deposits held-Bank book/Statements
• Information on present borrowings
• Copy of title document
• Approved Plans
• Recent estimates dated Signed by contractor
• Purchase Agreement (Property Purchase)

3
MEETING YOUR BANKERINVESTOR

• Proposal Requirements
• Total cost of project Does it include
  furniture/appliances?
• Cash Input vs amount to be borrowed
• Monthly repayment
• Cash Flow from rental taking into consideration
• Non rental of some units
• Repairs/Maintenance
• Utilities-Electricity, water, cable, internet
• Insurance
• Taxes

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USD MORTGAGES

• RBC launched this product in March 2009
• Loans in excess of USD150,000
• 70 financing available for amounts under
  500,000
• 60 -501,000- 750,000.00
• 55 750,001 - 1,000,000.00
• 50 over 1,000,000.00

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Equity Calculations

• Example 1
• Land Cost/Value 50,000
• Estimates 300,000
• Total Project cost 350,000
• 10 DEPOSIT 35,000.00
• You can borrow up to 300,000 as the cost/value
  of the land covers your down payment
• Value of land is utilized if purchased over 5
  years ago

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Equity Calculations

• Example 2
• Land price/value 20,000
• Estimates 300,000
• Total Project cost 320,000
• 10 DOWN PAYMENT 32,000
• Client will have to inject 12,000 in cash as
  bank will only lend up to 288,000
• Value of land will be utilized if land purchased
  5years previously

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Debt Service Calculations Annual
Figures
Total Income New Advance
Salary Existing RBC
Rental Income Other Bank Loan
Part time Salary Rent/Mortgage
Investments Insurances/Taxes
Credit Cards 5 of limit
Utilities (Telephone etc
Total Income Total Expenses
DSR
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Mortgage Indemnity Insurance

• The bank reduced the amount of down payment
  required by clients from 20 to 10, however we
  still have to maintain the 20 equity
  requirement. This is covered by Mortgage
  Indemnity insurance on the difference between the
  clients minimum 10 down payment and the banks
  requirement. It is calculated as follows

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Mortgage Indemnity

• Loan proposal of 300,000.00
• Project Cost 350,000
• Required equity 350,000 x 20 70,000
• Client has an input of 50,000.00
• They have 2 options inject an additional
  20,000.00 or pay a one time fee calculated as
  follows
• 70,000 - 50,000 20,000 x 5.75 1,150.00

10
Legal Fees/Stamp Duties

• Loan amount of 300,000.00
• If title is held by Certificate of Title
• We hold title by way of equitable Mortgage
• Fees/Duties 4,308.16
• If title is held by Deed
• We hold title by way of legal mortgage
• Fees/Duties 6,632.20

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TOTAL FEES

• Negotiation Fee 1 of loan
  3,000.00
• Stamp Duty on Promissory Note
  300.00
• Valuation Report (.0025 x value)
  875.00
• Mortgage Indemnity 1,150.00
• Legal Fees -COT
  4, 308.16
• Site visits
  1,600.00
• GRAND TOTAL
  11,233.16
• Additional fees include site visits

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Mortgage Symposium

• Thank you for your attention
• Any Questions?