1 MORTGAGE SYMPOSIUM June 30, 2009 ECCB 5.30 p.m.

2 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 )

3 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

4 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, % $750,001 - $1,000, % over $1,000,000.00

5 Equity Calculations Example 1 Land Cost/Value $ 50,000 Estimates $300,000 Total Project cost $ 350,000 10% DEPOSIT = $35, 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

6 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

7 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

8 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:

9 Mortgage Indemnity Loan proposal of $300, Project Cost $350,000 Required equity: $350,000 x 20% = $70,000 Client has an input of $50, They have 2 options inject an additional $20, 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, If title is held by Certificate of Title We hold title by way of equitable Mortgage Fees/Duties = $4, If title is held by Deed We hold title by way of legal mortgage Fees/Duties = $6,632.20

11 TOTAL FEES Negotiation Fee – 1% of loan $3, Stamp Duty on Promissory Note *Valuation Report (.0025 x value) Mortgage Indemnity 1, Legal Fees -COT 4, Site visits 1, GRAND TOTAL $11, *Additional fees include site visits

12 Mortgage Symposium Thank you for your attention Any Questions?