Rental Offset is Back!!

Looking for an Investment/Rental Property? If so, some lenders have just started offering "Rental Offset" again for calculating the clients' debt ratio. The Rental Offset calculation dramatically improves your ability to qualify.

Rental Offset went away for about 6 months due to changes in the CMHC Rental Property guideline. When these rules changed, most lenders started adding only 50% of the rental income to the clients employment income.

Rental Offset takes 80% of the rental income and deducts that figure from the mortgage payment. For example, say the rental income is $900 per month and the mortgage payment is $750 per month. 80% of the $900 rent is $720. If the mortgage payment is $750, you deduct the $720 rental offset and the net mortgage payment used in the debt ratio calculation os only $30.

Mortgage Fraud Seminar

Mortgage Managers hosted a Mortgage Fraud Seminar last night. The speakers included Fist Canadian Title and the RCMP.

The two-hour session covered a range of topics including Identity Theft, Title Fraud, Title Insurance, Debit & Credit Card Scams, Home Repair Scams, and more.

Some of the highlights of the seminar were:

1. Always cover your PIN when using your debit card
2. Do not carry your Social Insurance Card or Birth Certificate
3. Shred any documentation that has any personal information
4. Lock up your Identification, Credit Card Statements, & Income Tax Documents so they are not stolen
5. Identity Theft is happening frequently
6. Title Fraud in Canada cost lenders hundreds of millions of dollars each year.
7. It takes 600 hours of work to recover you Identity
8. Title Insurance is available to protect you financially if/when Mortgage Fraud and Title Fraud occurs

Many thanks to members of the RCMP Fraud Division and First Canadian Title for helping Mortgage Managers educate and protect the members of our community.