In these challenging mortgage financing times, it can be difficult for self-employed, investors or those with damaged credit to purchase homes. Lenders have become very restrictive in their lending practice, thus keeping people from home ownership. The Calgary, Alberta mortgage agents at MBN Mortgage (associated with Mortgage Intelligence) have aligned themselves with the MBN Group of Companies to find a way to solve these financing challenges.
We have a solution!
MBN Finance Ltd. is continually sourcing new methods of assisting our members with new property acquisition and moving them closer to their financial goals. Our Option Program is one of the most innovative and secure means of increasing your portfolio in today’s tight mortgage climate. Informed real estate investors acquire property in all types of markets; rising, falling or flat. We do all of the ground work for you so controlling another piece of property can be done in less than 48 hours.
In a nut shell our Option Program allows you to lease a rental property or principal residence at below market rents with the option to buy it at today’s price any time over the next 4 years. Through MBN Finance’s corporate guarantee your lease option purchase is 100% guarantied.
Our team of property locators is constantly sourcing new product from the rental market, the resale market and the new home sales market. We only secure properties in good neighborhoods with excellent rental potential. The program was created to benefit all MBN members and provide them with another method of increasing their holdings. Below is the Option Program timeline.
- MBN Finance secures the property with a 4 year lease with the option to buy it at today’s price at any time over the 4 years. Various caveats are registered on title to protect MBN’s interest and ultimately an MBN member’s interest in the property.
- MBN members have the opportunity to view the property with the MBN Real Estate Team.
- An Option Interest Acquisition Agreement is signed by the member wishing to control the property (the price of these options can range between $35,000.00 and $60,000.00 depending on the property).
- All contracts are reviewed by the Sutton Altawest Broker to ensure they comply with the Alberta Real Estate Act.
- The MBN member takes possession of the property and can rent it out or live in it. Any equity gain over the life of the lease option benefits that member.
- At the end of the 4 year term the member, or the member’s company, places a mortgage on the property for the originally agreed upon purchase price. The down payment is shown as the option price, the total amount of rent paid and any difference between the appraised value minus the above 2 items. This allows for conventional financing, thus avoiding mortgage insurance fees.
Through our Option Program MBN Finance is assisting our members in acquiring properties in 4 years time at today’s market price with what amounts to between 5% and 9% down. Despite the current mortgage climate our members are continually increasing their wealth.
For more information on how to take advantage of these opportunities for home ownership in Calgary, Okotoks, Airdrie, Cochrane, Edmonton and Red Deer, call 1-866-955-9662 or email bgavin@mbnltd.com.
