Bank Loan Salary Certificate

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					MORTGAGE SYMPOSIUM


    June 30, 2009
    ECCB Headquarters
    @ 5.30 p.m.


                        1
    MEETING YOUR BANKER
         PERSONAL 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)


                                                    2
      MEETING YOUR BANKER
            INVESTOR

   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
                                                                   3
        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
                                          4
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



                                                              5
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

                                                     6
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

                                                           7
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:
                                        8
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
                                                  9
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

                                               10
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
                                                      11
Mortgage Symposium


      Thank you for your attention


          Any Questions?



                                      12

				
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