Broker Scenario #1
Blanket Mortgage Construction
Problem: Client is building home for his son and was 50% complete, but needed funds to complete the build. Client needed $125,000 on closing and an additional $30,000 to complete, without a traditional draw structure. The client was willing to put a blanket mortgage on three other pieces of land in a subdivision that he owns.
Graysbrook Capital Solution: With the client having the extra security we were able to meet the client needs and release the full $125,000 on closing. This was important to the client as he could get better discounts from his supplier having the cash up front.
Broker Benefit: Happy client and built a rapport with the client. Potential of other builds down the road, meaning more deals for the broker.
Broker Scenario #2
Refinance – Short Term Mortgage
Problem: Clients are approved to refinance their 1st mortgage up to 80% on their primary residence, and are also approved up to 75% to refinance their rental property. The owe $40,000 CRA debt that needs to be paid to close the two approved mortgages.
Graysbrook Capital Solution: Client also owns a cottage free and clear. Deal was approved based on the cottage value, giving them enough funds to pay the CRA debt, allowing them to close the other two mortgages. Once these two mortgages close, they will refinance the cottage with a bank to pay us out.
Broker Benefit: The broker gets paid twice on the deal and build good rapport with the client.