What happens when you separate from your partner, but you remain on good terms with each other? For Cecelia and Howard, the answer was building a solid investment together.
When they first approached the Auxilium Team, Cecelia and Howard owned two houses together, each with a rental suite; she was living in one property, he was living in the other, and they had tenants in place in both suites. They wanted to buy a third property, which Cecelia would move into, turning her existing home into a full rental. In order to make the most of their investment to-date, they hoped to use the equity in Howard's property for the down payment on the new home.
With a lot of moving parts to this deal, Cecelia and Howard were declined by their own bank because their debt-service ratios didn't fit within the guidelines. The mortgage brokers at Auxilium recognized they would have to find a lender that would consider more of the rental income, and began to search for the right fit.
The solution for Cecelia and Howard's situation involved two parts: a refinance of his home and the purchase of her new one.
In order to use the equity in Howard's property for their down payment, they needed to refinance his existing mortgage and access those funds. Our team suggested that they pursue this part of the solution directly with the existing mortgage lender to avoid and minimize penalties, and ultimately receive the greatest benefit.
Once the mortgage refinance was complete, we were able to secure a lender for the purchase of Cecelia's new home. We settled on an inter-alia mortgage with a 1-year term, using both Cecelia's former home (now fully a rental) and the new property. This solution will allow Cecelia and Howard to seek even better terms using their increased rental income in a short period of time.
Two months after they found the property that would grow their investment, Cecelia happily calls it home and along with Howard manages four rental units that will continue to benefit both them and their community.