If you’re reading this blog, chances are you already recognize the value of a mortgage broker—but did you know that we’re good for so much more than simply finding you the best rate? We can also recommend mortgage products that better fit your needs, help you resolve complex mortgage challenges, and assist you in leveraging your mortgage to achieve your financial goals.
Case in point: This story. Essentially, a couple was looking to upgrade to a larger house—but they didn’t want to be rushed in their house hunt (something that can happen if you list your existing house before finding your next one). They also didn’t want to feel the pressure of rapidly selling their old home before their new one closed.
To ensure a stress-free upgrade, their mortgage broker came up with an ingenious plan. According to the homebuyer:
“What you do is arrange to finance the new house through both a mortgage and a HELOC. So if you’re buying a 500k house with a 100k DP, and you expect to have another 100k in cash a few months later, you get a 300k mortgage and a 100k HELOC on the new house, you immediately extract the full amount of the HELOC to close on the deal, and then when you sell your old house you pay off the HELOC.”
Obviously, this type of arrangement won’t work for everyone (very few of us have $100,000 lying around that we can just put down on a second home). That being said, it was a possibility for this couple—a possibility they likely wouldn’t have identified without the expertise of their mortgage broker!
So the next time you’re facing a home buying or home renovation challenge, throw it by me! I just might be able to find a solution for you.