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In this episode of the Close More Deals Podcast, host Scott Dillingham breaks down one of the most critical calculations in commercial real estate financing: net operating income (NOI). Whether your clients are purchasing a business, acquiring commercial property, or investing in real estate, understanding NOI can mean the difference between loan approval and rejection. Scott explains how this fundamental metric helps lenders determine maximum loan amounts and why working with a specialized commercial mortgage team can dramatically increase approval success rates.Net operating income is calculated by taking a property or business's total income and subtracting all operating expenses. This straightforward formula becomes the foundation for determining debt service coverage ratio (DSCR), which most commercial lenders require to be at least 1.2 or 20% surplus over expenses. Scott walks through exactly how lenders use this coverage ratio to calculate the maximum loan amount a borrower can qualify for when purchasing a business or commercial building.One of the most valuable insights Scott shares involves how amortization periods dramatically impact loan sizing. Using a real client example involving a trucking facility purchase approaching four million dollars, Scott demonstrates how one bank offering only a 15-year amortization could not provide enough funding for the deal to work. However, another lender offering a 25-year amortization on the same property with the same DSCR requirement resulted in a significantly larger loan amount that made the acquisition possible. This real-world example highlights why comparing multiple lenders is essential for commercial transactions.Scott emphasizes the importance of pre-qualifying deals before investing significant time in offers and showings. For realtors working with commercial buyers, having clients consult with a dedicated commercial lending team first can save countless hours and dramatically improve close rates. The LendCity commercial team offers complimentary phone consultations where they run NOI calculations in real-time, giving buyers immediate clarity on maximum loan amounts for specific properties or businesses.Beyond the numbers, Scott addresses the emotional component of commercial purchases. Some buyers become attached to properties that simply do not make financial sense based on their NOI analysis. The debt coverage ratio requirement acts as a protective filter, preventing buyers from acquiring underperforming businesses or properties that could become financial burdens. This disciplined approach to commercial lending ultimately protects both the borrower and the lender.For real estate professionals, understanding how commercial lenders evaluate deals provides a significant competitive advantage. By incorporating NOI analysis into your client consultation process, you position yourself as a knowledgeable advisor who helps clients make informed investment decisions rather than emotional purchases that may not qualify for financing.Key TakeawaysNet Operating Income Formula: NOI equals total income minus operating expenses, forming the foundation for commercial loan qualification and determining maximum borrowing capacity for business and property acquisitions.Debt Service Coverage Ratio Standard: Commercial lenders typically require a DSCR of 1.2, meaning the property or business income must exceed debt payments by at least 20% to ensure adequate cash flow coverage.Amortization Period Impact: Longer amortization periods significantly increase maximum loan amounts; a 25-year amortization can qualify borrowers for substantially larger loans than 15-year terms using identical DSCR requirements.Industry-Specific Lending Challenges: Certain sectors like trucking facilities and office space currently face tighter lending criteria with some banks scaling back programs, making broker relationships essential for finding willing lenders.Pre-Qualification Benefits for Realtors: Running NOI calculations before showing properties or submitting offers saves time, increases closing success rates, and prevents clients from pursuing deals that cannot be financed.100% Financing Possibilities: Depending on loan size, location, business type, and overall income profile, some commercial deals may qualify for up to 100% financing through specialized programs.Emotional Decision Prevention: The debt coverage ratio requirement acts as a financial safeguard, preventing buyers from acquiring underperforming properties or businesses based on emotion rather than sound investment fundamentals.Links to Show ReferencesLendCity Mortgages Commercial Team: lendcity.caCommercial Loan Pre-Qualification Consultation: Contact LendCity for complimentary phone analysisClose More Deals Podcast: Subscribe for weekly real estate financing strategies

Understanding debt ratios is one of the most powerful yet overlooked tools real estate agents can use to close more deals and help clients secure properties at higher purchase prices. In this episode of the Close More Deals podcast, host Scott Dillingham breaks down the complexities of debt-to-income calculations and reveals how different lenders evaluate these critical numbers in dramatically different ways.Most agents know that banks typically use a 44% debt-to-income ratio as their benchmark. This means for a client earning $100,000 annually, approximately $44,000 can be allocated toward total debt payments including mortgage, credit cards, and lines of credit. However, what many agents don't realize is that this 44% figure carries completely different meanings at different financial institutions, creating opportunities for savvy agents who understand these nuances.Scott reveals how certain banks apply hidden handicaps to their debt ratio calculations. Some lenders take credit card limits and calculate payments as if the cards were maxed out, using 3% of the total limit as a minimum payment regardless of actual balances. This seemingly small difference can significantly impact a client's qualification, turning an approval into a denial without the client ever understanding why.The episode explores how various income sources receive dramatically different treatment across lenders. Child tax benefits, maternity leave income, rental income, and self-employed earnings are all evaluated using different methodologies depending on which lender processes the application. For agents working with first-time homebuyers carrying student debt, understanding how different lenders calculate student loan payments can mean the difference between closing a deal and losing a client.Scott introduces B lenders as a powerful alternative for clients who don't fit traditional banking criteria. These alternative lenders typically accept debt ratios ranging from 50% to 60%, but more importantly, they evaluate income and debts using more favorable methods. B lenders can incorporate guarantor income without attaching to the guarantor's credit bureau, use actual credit card payments instead of the 3% rule, and assess self-employed income through bank statements rather than tax returns.For situations where even B lenders cannot provide solutions, private lenders offer yet another pathway to deal closure. Private lenders focus less on strict debt-to-income numbers and more on the overall financial story and exit strategy. Whether clients need financing for properties in poor condition, are between jobs, or have other unique circumstances, private lending can bridge the gap that traditional financing cannot cross.The key message for real estate agents is clear: when a bank tells your client their debt ratios are too high, that's not the end of the conversation—it's just the beginning. By partnering with experienced mortgage brokers who understand the full spectrum of lending options, agents can rescue deals that would otherwise fall through and help clients achieve homeownership goals they thought were out of reach.Key TakeawaysDebt Ratio Variations: The same 44% debt-to-income ratio means different things at different lenders due to varying calculation methods for credit cards, student loans, and income sourcesCredit Card Calculations: Some banks use 3% of your total credit limit as a payment, even if balances are zero, significantly impacting qualificationIncome Treatment Differs: Child tax benefits, maternity leave, rental income, and self-employed income are evaluated differently by each lenderB Lender Advantages: Alternative lenders accept 50-60% debt ratios, use actual payments instead of calculated minimums, and allow guarantor incomePrivate Lender Options: When traditional financing fails, private lenders focus on the overall story and exit strategy rather than strict ratiosNever Accept First No: If a bank declines based on debt ratios, consult a mortgage broker who can explore all available lending optionsLinks to Show ReferencesLendCity Mortgages: https://lendcity.ca

In this episode of the Close More Deals Podcast, host Scott Dillingham breaks down the essential differences between conventional bank financing and CMHC-insured programs for multifamily properties with five or more units. For real estate professionals and investors working with apartment building purchases, understanding these financing options can mean the difference between a deal that works and one that falls apart at the numbers stage.Scott explains that conventional bank financing for commercial multifamily properties typically limits borrowers to 25-year amortizations and 75% loan-to-value ratios, with some exceptions reaching 30 years and 80% LTV. These restrictions significantly impact how much investors can qualify for because commercial lenders calculate loan amounts based on the property's cash flow rather than personal income. When that cash flow is analyzed over a shorter amortization period, the resulting loan amount is substantially lower than what could be achieved through alternative programs.Understanding CMHC MLI Standard and MLI Select ProgramsThe episode focuses on two powerful CMHC programs that transform multifamily financing possibilities. The MLI Standard program offers up to 85% loan-to-value with amortizations extending to 40 years, providing significantly better terms than conventional options. However, the MLI Select program takes these benefits even further by introducing a points-based system that rewards investors for meeting affordability, energy efficiency, and accessibility criteria.Under MLI Select, projects earning at least 100 points can access financing at 95% loan-to-value with amortizations stretching to 50 years. This represents double the amortization period available through traditional bank channels. The program evaluates three key areas: the proportion of units with rents at or below 30% of median income, energy efficiency improvements, and the percentage of accessible units within the property. Higher scores translate to better financing terms, including reduced insurance premiums.Why CMHC-Insured Financing Changes the GameScott emphasizes that the mathematical impact of these differences cannot be overstated. A property analyzed under a 40 or 50-year amortization will qualify for substantially more financing than the same property evaluated under a 25-year period. This means investors can either purchase larger properties or put less money down on their acquisitions. Current interest rates for CMHC-insured multifamily mortgages are running in the low to mid-three percent range, which compares favorably even to residential variable rates.The trade-off involves a CMHC insurance premium that gets added to the loan amount, similar to how residential mortgage insurance works. However, the combination of lower interest rates, longer amortizations, and higher loan-to-value ratios typically makes this premium worthwhile for most multifamily investors.The Critical Role of Mortgage BrokersA key takeaway from this episode is that most banks do not offer CMHC-insured multifamily programs. They only provide conventional financing options, which means investors who go directly to their bank may be limiting their purchasing power without realizing it. Working with a mortgage broker who specializes in commercial and multifamily financing ensures access to the full range of available programs and helps investors maximize their qualification amounts.For realtors working with multifamily buyers, understanding these financing differences positions you to add significant value to your client relationships. Guiding investors toward the right financing solutions before they start shopping can help ensure deals actually close rather than falling apart during the qualification process.Key TakeawaysConventional bank financing for 5+ unit properties typically offers 75% LTV and 25-year amortizations, significantly limiting how much investors can qualify for compared to CMHC-insured optionsCMHC MLI Standard provides up to 85% LTV with 40-year amortizations, while MLI Select can offer 95% LTV with 50-year amortizations for projects meeting affordability, energy efficiency, and accessibility criteriaCommercial multifamily loans are calculated based on property cash flow, meaning longer amortization periods directly translate to higher qualifying loan amountsCurrent CMHC-insured multifamily rates are in the low to mid-three percent range, often better than residential variable ratesMost banks only offer conventional commercial financing, making mortgage broker relationships essential for accessing CMHC programsMLI Select uses a points system where projects earning 100+ points qualify for the best financing terms, with points awarded for affordable rents, energy improvements, and accessible unit designLinks to Show ReferencesLendCity Mortgages: lendcity.caCMHC MLI Select Program Information: cmhc-schl.gc.ca/professionals/project-funding-and-mortgage-financing/mortgage-loan-insurance/multi-unit-insurance/mliselect

In this episode of the Close More Deals Podcast, host Scott Dillingham reveals a powerful mortgage qualification strategy that most bank clients never hear about. When homeowners decide to keep their current property as a rental instead of selling, traditional lenders typically only allow 50% of the rental income to count toward qualification—creating an artificial shortfall that limits purchasing power. Scott explains how specialized rental worksheet programs available through select mortgage brokers can use up to 100% of rental income, dramatically increasing what buyers can qualify for when purchasing their primary residence.The rental worksheet approach fundamentally changes how lenders calculate debt service ratios. Rather than treating half the rental income as a loss on paper, these programs allow brokers to input actual rental figures and subtract real expenses, resulting in a much smaller—or even positive—cash flow calculation. This difference can mean tens of thousands of dollars in additional purchasing power for qualified borrowers. Scott shares a compelling case study where a client was initially approved for only $250,000 through their bank, but after applying the rental worksheet program, qualified for $450,000—nearly double the original amount.This strategy is becoming increasingly relevant as Canadian real estate markets experience longer selling times and more homeowners choose to hold onto their properties as investments rather than sell. With the ability to purchase a new primary residence with as little as 5% down payment while keeping an existing property as a rental, homeowners can build wealth through real estate without depleting their current equity position. The key distinction is that this program specifically applies when purchasing an owner-occupied primary residence while converting an existing home to rental property—a scenario that major banks simply cannot accommodate with competitive qualification amounts.Scott emphasizes that these rental worksheet programs are not available through traditional banks and require working with mortgage professionals who have access to specialized lenders. For realtors, understanding this program creates a significant opportunity to help clients who might otherwise be stuck renting or unable to find suitable properties within their bank-approved budget. The episode underscores the value of seeking second opinions on mortgage pre-approvals, particularly when clients are navigating the transition from homeowner to landlord-investor.Key TakeawaysTraditional lenders use only 50% of rental income when qualifying borrowers who are converting their home to a rental property, creating an artificial debt shortfall that limits purchasing powerRental worksheet programs available through mortgage brokers can use up to 100% of rental income, potentially doubling qualification amounts compared to bank approvalsHomeowners can purchase a new primary residence with as little as 5% down payment while keeping their existing property as a rental investmentA real case study showed a client's approval jump from $250,000 at a bank to $450,000 using the rental worksheet program—an $200,000 increase in purchasing powerThis program is specifically designed for primary residence purchases where the borrower is renting out their previous home, not available through major banksRealtors can significantly increase deal closings by referring clients for second-opinion pre-approvals when rental conversion is involvedLinks to Show ReferencesLendCity Mortgages: lendcity.caContact Scott Dillingham: scott@lendcity.caClose More Deals Podcast: Available on major podcast platforms

In this episode of the Close More Deals Podcast, host Scott Dillingham breaks down one of the most misunderstood challenges in Canadian mortgage lending: financing properties with agricultural zoning or large acreage. Many borrowers and even some mortgage professionals assume that if a property is zoned agricultural, it automatically requires a commercial mortgage or cannot be financed at all. Scott debunks this myth and reveals that multiple residential lenders across Canada will finance these properties when they meet certain criteria.The key to successfully financing an agriculturally zoned property lies in understanding how lenders assess risk. When a borrower defaults on a mortgage, lenders need to repossess and sell the property to recover their funds. Properties zoned agricultural present a unique challenge because foreclosure timelines differ significantly from residential properties. For agricultural land, foreclosure processes in Canada typically require a full crop cycle waiting period of approximately 12 months, compared to just 3 months for standard residential foreclosures. This extended timeline increases lender risk and explains why many institutions decline these applications outright.Scott explains that the property's physical surroundings play a critical role in financing approval. A single-family home that is wedged tightly between active farming operations with silos, barns, and agricultural equipment in close proximity will present the most difficulty for financing. However, properties that are simply zoned agricultural but situated with adequate space from intensive farming activity have significantly more financing options available. The distinction between agricultural zoning on paper versus actual agricultural use in practice is crucial for mortgage approval.The episode also addresses acreage limitations and how they impact mortgage financing. Most residential lenders will finance properties with up to 10 acres without issue. Some lenders extend their policies to accommodate 15 acres or more, though options become progressively limited as acreage increases. For properties exceeding these thresholds, lenders typically value only the home and a portion of the land, requiring borrowers to fund the remaining acreage through additional down payment. This means a buyer purchasing a property with substantial land may need to bring significantly more cash to closing than anticipated, as the excess acreage value will not be included in the mortgage amount.Scott emphasizes that being told agricultural zoning requires commercial financing is simply incorrect in many cases. Working with a mortgage professional who has access to multiple lenders specializing in rural and acreage properties can make the difference between approval and denial. LendCity maintains relationships with lenders across Canada who understand these unique property types and can structure financing solutions that work for buyers seeking rural properties with agricultural zoning or large acreage.Key TakeawaysAgricultural zoning alone does not automatically disqualify a property from residential mortgage financing, as many lenders evaluate intended use and property characteristics rather than zoning classification aloneProperties surrounded closely by active farming operations including silos, barns, and agricultural equipment face the most significant financing challenges due to marketability concernsMost residential lenders will finance properties with up to 10 acres, with some extending to 15 acres or more, while properties exceeding lender acreage limits require additional down payment for excess land valueForeclosure timelines for agricultural properties typically require 12 months compared to 3 months for residential properties, which drives lender risk assessment and approval criteriaAppraisers may exclude outbuildings, excess land, and agricultural improvements from property valuation when determining the mortgage amount a lender will approveWorking with a mortgage broker who has access to specialized rural and acreage lenders is essential for finding financing solutions when mainstream lenders decline applicationsLinks to Show ReferencesLendCity Mortgages: lendcity.caContact LendCity for Rural Property Financing: Visit the website or call for a consultation on agriculturally zoned property mortgages

In this episode of the Close More Deals Podcast, host Scott Dillingham tackles one of the most common challenges mortgage professionals face: helping clients who are on probation or have less than one year at their current job get approved for a mortgage. Many buyers assume they need years of stable employment to qualify for financing, but Scott reveals the lending solutions that exist beyond traditional bank requirements.Scott explains that while many major banks require at least one year of employment history, this requirement is not universal across all mortgage providers. When clients receive a decline from their bank due to probationary status or limited job tenure, it should immediately signal an opportunity to work with a mortgage broker who has access to more flexible lending options. The key distinction Scott makes is between clients who simply have a new position versus those with inconsistent employment patterns jumping between roles every few months.For borrowers on probation, Scott shares that numerous A-lenders will approve mortgage applications regardless of probationary status. This flexibility proves especially valuable for individuals relocating for work, changing careers for better opportunities, or starting positions in new employment categories. The approval process works through CMHC-insured products as well as alternative and private lending channels, giving mortgage professionals multiple pathways to find solutions for their clients.Scott highlights the role of monoline lenders in providing these flexible mortgage solutions. Unlike traditional banks that offer multiple financial products, monoline lenders focus exclusively on mortgage lending. This specialization allows them to develop more nuanced underwriting guidelines and take a closer look at each application rather than applying rigid policies. Their reduced overhead costs from operating without physical branches also translates to competitive rates for borrowers.The episode emphasizes the importance of mortgage professionals understanding that each client file requires individual assessment. While Scott maintains realistic expectations about approval possibilities, he encourages agents and brokers to explore all available options before telling clients they cannot qualify. Working with the right lending partners can transform what appears to be an impossible situation into a successful mortgage approval.Key TakeawaysTraditional banks often require one year of job tenure, but many monoline lenders and alternative providers will approve mortgages with less employment historyProbationary status does not automatically disqualify borrowers when working with lenders who have flexible employment guidelinesInconsistent job history with frequent position changes creates approval challenges, while a single recent job change typically does notCMHC-insured mortgages, alternative lenders, and private lending all offer pathways for probationary borrowersMonoline lenders specialize exclusively in mortgage products and often provide more flexible underwriting than traditional banksMortgage brokers should assess each client situation individually rather than applying blanket rules about employment requirementsClients relocating for new positions or advancing their careers benefit most from understanding these flexible lending optionsLinks to Show ReferencesLendCity Mortgages: lendcity.caContact Scott Dillingham: scott@lendcity.caCMHC Self-Employed and Flexible Programs: cmhc-schl.gc.ca

In this episode of the Close More Deals Podcast, host Scott Dillingham breaks down two powerful mortgage programs designed specifically for self-employed borrowers and those with non-traditional income. These alternative mortgage solutions help clients who struggle to qualify through conventional lending channels secure the financing they need. Scott explains the 10% down insured stated income program and the 20% down bank statement program—both proven strategies for closing more deals with clients who face income verification challenges.The first program Scott discusses is the insured stated income mortgage option, which requires just 10% down. This program works through mortgage default insurers including CMHC, Sagen, and Canada Guaranty, allowing mortgage lenders to approve borrowers based on reasonable stated income rather than tax returns alone. Scott shares a recent success story involving a truck driver whose tax return showed only $13,000 in declared income but was approved for $70,000 stated income—a figure validated through industry income tools. The insurer verified this was reasonable compensation for a truck driver and approved the mortgage, enabling a purchase that traditional lenders had denied. This approach is particularly valuable for self-employed individuals, contractors, and commission-based workers who write off substantial business expenses, resulting in artificially low net income on their notice of assessment.The second program focuses on bank statement mortgages for borrowers with 20% or more down payment. Rather than relying solely on what clients report to the Canada Revenue Agency, this alternative income verification method examines 12 months of business bank statements to calculate actual income. Lenders review all deposits and intelligently subtract legitimate business expenses—like fuel costs for the truck driver example—to determine net available income for mortgage qualification. This bank statement program proves especially effective for cash-based businesses, gig economy workers, and entrepreneurs whose business financials don't fully reflect their capacity to service mortgage debt. Both programs fall under B lender mortgage solutions, which means slightly higher interest rates and lender fees (typically around 2% of the mortgage amount), but they provide critical pathways to homeownership for those with strong income but non-traditional documentation.Understanding self-employed mortgage requirements is essential for real estate professionals and mortgage brokers working with entrepreneurial clients. Traditional mortgage qualification criteria penalize business owners for smart tax strategies, but these stated income and bank statement alternatives recognize the reality of self-employment income. The insured 10% down program offers the best mortgage rates available since it's backed by mortgage insurance, making it an attractive option for first-time buyers and those with limited savings. Meanwhile, the 20% down bank statement program provides more flexibility for established business owners with substantial equity. Scott emphasizes that lenders use tools similar to employment websites to verify that stated income aligns with industry standards—ensuring reasonable income claims while avoiding the rigid requirements that cause traditional bank rejections.For real estate professionals, mastering these alternative mortgage programs means being able to serve a much broader client base. Self-employed mortgage lenders who understand these products can help contractors, freelancers, real estate investors, and small business owners achieve their homeownership and investment goals despite showing lower taxable income. The key is recognizing when clients need these specialized solutions: multiple bank declines, high write-offs reducing net income, cash income streams, or less than two years in business. By positioning these mortgage loan options as solutions rather than last resorts, mortgage brokers can close deals that competitors miss while building lasting client relationships. Scott's practical examples demonstrate how understanding income verification alternatives transforms challenging files into successful mortgage approvals, ultimately helping more Canadians access home financing regardless of how they earn their income.Key TakeawaysInsured Stated Income Program (10% Down): Work with CMHC, Sagen, or Canada Guaranty to approve borrowers based on reasonable stated income verified through industry standards—ideal for self-employed clients whose tax returns don't reflect true earning capacity; offers best available mortgage rates since it's insured.Bank Statement Mortgage Program (20% Down): B lenders review 12 months of business bank statements, analyzing deposits minus business expenses to calculate qualifying income—perfect for cash-based businesses and entrepreneurs with strong actual income but lower reported income on their notice of assessment.Income Verification Alternative: Both programs solve the common challenge where self-employed borrowers face mortgage rejection despite strong income; lenders subtract reasonable business expenses from bank deposits to determine net income for qualification purposes.Real-World Example: Truck driver with $13K reported income qualified for mortgage using $70K stated income (validated as reasonable for the profession), demonstrating how these programs overcome traditional lending barriers for self-employed individuals.B Lender Mortgage Fees: Expect approximately 2% lender/broker fees on the mortgage amount plus slightly higher interest rates compared to A lenders; the 10% down insured program offers better rates than the 20% down bank statement option due to insurance backing.Target Clients: These programs serve contractors, commission workers, gig economy professionals, cash-based businesses, and anyone with less than two years of documented business history or significant tax write-offs reducing net income.Links to Show ReferencesLendCity Mortgages (for Pre-Approvals and Alternative Programs): lendcity.caContact Scott Dillingham: scott@lendcity.caClose More Deals Podcast: For more episodes on creative mortgage solutions and closing strategies

In this episode of the Close More Deals Podcast, host Scott Dillingham dives deep into rental property investing strategies, revealing how brokers can help clients qualify for unlimited rental properties without hitting the dreaded debt wall. Many investors start strong with traditional A lenders, but soon face limits on debt-to-income ratios and the number of financed properties, leading to stalled growth in their real estate portfolios. Scott breaks down common pitfalls, like shifting to B lenders for higher debt allowances or resorting to costly private lending, and explains why these options often fall short for long-term rental property financing.Scott introduces a game-changing approach: leveraging special commercial lending programs that apply commercial underwriting to residential rental properties. This method focuses on the property's cash flow—using debt service coverage ratio (DSCR) principles—rather than personal credit or income, allowing clients to secure loans for as many properties as they can cash-flow positively. With rates typically ranging from 4.5% to 7%, plus a modest 2% fee, this option often undercuts B and private lenders while enabling unlimited scaling. Ideal for investors eyeing duplexes or multi-family units, it emphasizes buying stronger cash-flowing assets to maximize loan-to-value (LTV) ratios up to 65% or more, turning potential weaknesses into opportunities for smarter real estate decisions.Whether you're a broker guiding first-time rental investors or a seasoned landlord expanding your holdings, this episode equips you with actionable tips on financing multiple rental properties through innovative DSCR loans and commercial lenses. Scott stresses structuring deals in corporations for flexibility and highlights how this strategy supports endless portfolio growth without the high fees or restrictions of traditional paths, making it a must-listen for anyone serious about investment property mortgage rates and sustainable wealth building.Key TakeawaysAvoid the Debt Wall in Rental Investing: Traditional A lenders cap properties based on debt-to-income ratios, but shifting early to cash-flow-focused options prevents portfolio stagnation and bad deals.B Lenders for Expansion: These allow higher debt ratios and more rental income consideration than banks, serving as a bridge for investors needing beyond four financed properties.Private Lending Pitfalls: While flexible, expect rates up to 15% and fees from 2-6%, making it a last resort—explore better alternatives first for cost-effective growth.Commercial Underwriting for Residential Rentals: Use special programs to qualify for unlimited properties by evaluating each asset's income vs. expenses, often ignoring personal credit for DSCR-based approvals.Cash Flow Drives Loan Limits: Lenders cap LTV at levels ensuring positive cash flow (e.g., 65% on weaker properties), signaling the need for stronger investments to unlock higher financing.Cost Comparison for Scaling: Commercial rates (4.5-7%) and 2% fees beat B (5-7%, 2-3% fees) and private options, enabling nonstop rental property portfolio expansion at A-lender-like pricing.Links to Show ReferencesLendCity Mortgages (for Pre-Approvals and Rental Financing Guidance): lendcity.caClose More Deals Podcast (Subscribe for More Investing Tips): Search on your favorite platform or visit LendCity resources

In this episode of the Close More Deals Podcast, host Scott Dillingham dives into the powerful world of purchase plus improvements mortgages, a game-changing tool for real estate pros and homebuyers looking to finance renovations alongside their property purchase. Often overlooked, this program lets you roll renovation costs directly into your mortgage, turning fixer-uppers into dream homes without separate loans. Scott explains how it works for purchases and refinances, highlighting how lenders appraise the property based on its post-renovation value to maximize borrowing power and make distressed properties financeable. Whether it's updating kitchens, bathrooms, or addressing major repairs, this approach helps clients avoid emotional buying pitfalls by focusing on long-term value and livability.Scott breaks down the funding options, from lump-sum payouts to progress draws where funds release after one-third, two-thirds, and full completion of work—ensuring accountability while minimizing risk. He notes key lender variations, like caps at $40,000 for some versus unlimited amounts tied to appraisals for others, urging brokers to shop wisely for the best fit. This strategy shines for first-time buyers eyeing affordable homes needing TLC, investors targeting rentals, and sellers prepping properties for quicker sales. Even refinance plus improvements can unlock equity for essential fixes, valuing the home as-improved to bridge gaps in current equity.With rising interest in home renovation financing in Canada, Scott emphasizes its versatility across residential, select rental, and rare commercial scenarios. By blending practical tips with real-world examples—like transforming ugly properties into lender-approved gems—this episode equips mortgage professionals to close more deals efficiently. Discover how purchase plus improvements mortgages expand buying options, reduce out-of-pocket costs, and build wealth through smarter property upgrades.Key TakeawaysPurchase Plus Improvements Basics: Roll renovation costs into your mortgage for buying fixer-uppers, with lenders funding based on post-improvement appraisals to finance even distressed properties.Funding Flexibility: Choose lump-sum advances or progress draws (payouts at 1/3, 2/3, and 100% completion) to ensure work progresses, making it ideal for kitchens, bathrooms, paint, or major repairs.Lender Variations to Watch: Many cap funds at $40,000, but others offer unlimited amounts if the renovated value appraises—shop insured options for 5% down payments and higher loan-to-value ratios.Refinance Plus Improvements Power: Unlock equity for pre-sale fixes by valuing the home as-improved, helping sellers boost marketability and close deals faster without upfront cash.Versatile Applications: Works for residential purchases, select rentals (despite common lender hesitancy), and rarely commercial—perfect for first-time buyers, investors, and wealth-building strategies.Pro Tips for Success: Get detailed quotes upfront, guide clients on realistic scopes, and use this tool to turn "ugly" homes into livable assets, emphasizing informed decisions over impulse buys.Links to Show ReferencesLendCity Mortgages (for Pre-Approvals and Renovation Financing): lendcity.ca

In this episode of the Close More Deals Podcast, host Scott Dillingham dives into the gritty realities of real estate prospecting and how mortgage brokers can turn "no down payment" objections into "yes" opportunities. Drawing from years of frontline lending experience, Scott breaks down strategies for clients with strong credit scores (700+), emphasizing that hard work in outreach pays off when armed with innovative tools. He spotlights the CMHC FlexDown program, a game-changer for flexible financing that lets qualified buyers borrow their minimum 5% down payment from sources like lines of credit, personal loans, or even family—without derailing the deal. As of November 2025, this insured option remains robust under CMHC, Sagen, and Canada Guaranty, with lenders factoring in only the minimum monthly payments to keep debt ratios in check, enabling buyers to enter the market now amid stabilizing rates.Scott layers in a pro tip from his early days at LendCity: pair FlexDown with cash-back mortgages offering 1% to 5% rebates. Borrow the 5% down, close the deal, then use the instant cash back to repay the loan—leaving clients with just their primary mortgage and zero extra debt. This tactic sidesteps common barriers for first-time buyers in Canada's competitive housing scene. With average home prices holding steady and new rules favoring insured low-down-payment loans, Scott stresses education over pressure sales, urging listeners to qualify credit first and prospect relentlessly for long-term wins.Whether you're a realtor building your pipeline or a buyer eyeing that first property, this episode equips you with actionable intel to bypass down payment roadblocks. Hosted by LendCity, Canada's trusted mortgage partner for pre-approvals and custom solutions, it blends practical wisdom with updated 2025 market insights for sustainable wealth building in real estate.Key TakeawaysProspecting Mindset: Real estate success demands consistent outreach—when clients cite no down payment, pivot to credit checks; scores of 700+ unlock flexible programs like CMHC FlexDown for immediate action.CMHC FlexDown Basics: Borrow the 5% minimum down from lines of credit, personal loans, or family; lenders include only minimum payments in debt ratios, keeping affordability intact for strong borrowers (confirmed active via CMHC/Sagen in 2025).Cash-Back Layering Hack: Select lenders offering 1-5% rebates (e.g., up to $5,000 from TD or YNCU promotions ending late 2025) to repay borrowed down payments post-closing, simplifying to a single mortgage payment.Credit Threshold Strategy: Always start with a credit score inquiry—700+ qualifies for insured flexibility, avoiding conventional 20% down requirements and enabling 95% loan-to-value purchases under $500,000.Debt Ratio Caution: Borrowed funds must be conservative; focus on minimum payments only, and educate clients on long-term impacts to build trust and prevent overextension in today's rate environment.LendCity Action Step: Contact LendCity for free pre-approvals to test FlexDown eligibility, turning prospecting leads into closed deals with transparent, client-first advice.Links to Show ReferencesLendCity Mortgages (Pre-Approvals & FlexDown Guidance): lendcity.caCMHC FlexDown Program Details: cmhc-schl.gc.caSagen Borrowed Down Payment Info: sagen.ca/products-and-services/borrowed-down-payment

In this episode of the Close More Deals podcast, host Scott Dillingham dives into how maternity leave impacts mortgage qualifications in Canada. He explains the varying lender policies on using maternity leave income, emphasizing that many clients get declined unnecessarily due to mismatched lenders. Scott highlights top-tier options where 100% of pre-leave income can be used if returning to work within 18 months, and other common scenarios allowing full income consideration within 12 months or even two months. He stresses the importance of a return-to-work letter from the employer confirming the start date and role, which is required across all supportive lenders. For those not returning, such as stay-at-home parents, income typically can't be used unless opting for alternative lenders.Scott shares practical advice for navigating these programs to avoid denials, noting that some lenders don't support maternity leave income at all, while others offer flexible terms like 60% usage between 12 and 18 months. He encourages listeners who've been told they can't proceed to reach out, as pivoting to the right lender often secures approval. Drawing from real client experiences, the episode underscores how understanding these nuances can turn potential roadblocks into successful deals. As of November 2025, these policies remain consistent with Canadian mortgage guidelines, protecting applicants on leave and focusing on pre-leave earnings for qualification.This informative session equips homebuyers and real estate professionals with essential knowledge to qualify during maternity leave, blending lender insights with actionable steps for smoother applications. Whether planning a purchase or renewal, Scott's tips help maximize income consideration and avoid common pitfalls in the mortgage process.Key TakeawaysTop-Tier Lender Options: Select lenders use 100% of pre-maternity leave income for qualification if returning to work within 18 months, requiring a return-to-work letter.Common 12-Month Policies: Many lenders accept 100% of income if the return date is within 12 months, helping more applicants qualify without reduced earnings.Short-Term Return Requirements: Some lenders only consider full income if starting back at work within two months, limiting options for longer leaves.Flexible 12-18 Month Terms: One lender allows 100% within 12 months or 60% of income from 12 to 18 months, providing a middle-ground solution.Essential Documentation: All supportive lenders mandate an employment letter detailing return date, role, and compensation; without it, income can't be used.Non-Returning Parents: If staying home post-leave, income is typically excluded unless using alternative lenders for qualification.Avoiding Denials: Don't rely on banks with strict policies—pivot to compatible lenders to close deals, especially for clients on extended leave.Links to Show ReferencesLendCity Mortgages (for Mortgage Approvals): lendcity.caBook a Call with LendCity Team: Book Here

In this inaugural episode of the Close More Deals podcast, host Scott Dillingham from LendCity Mortgages shares valuable insights for realtors on growing their business through better mortgage strategies. Drawing from years of coaching Realtors® on special programs, rates, terms, and conditions, Scott emphasizes how understanding mortgage nuances can help close more deals. He kicks off with a rundown of current rates, noting that all figures are time-sensitive and subject to change. For insured mortgages (less than 20% down), the lowest 5-year fixed rate is around 3.69%, with variables starting at 3.45%. Insurable mortgages (20% or more down, with lender-backed insurance and 25-year amortization) mirror these at 3.69% fixed and 3.69% variable in some cases, while uninsurable options (like 30-year amortizations) start higher at 4.24% fixed and 3.95% variable, based on verified market data as of November 2025.Scott stresses the pitfalls of defaulting to a client's bank for pre-approvals, which can limit options and reduce borrowing power. He contrasts this with using an experienced mortgage broker who accesses multiple lenders for optimal terms. Examples include how some banks factor 3% of credit card limits (even if balances are zero) into debt calculations, artificially lowering pre-approval amounts—e.g., $30,000 in limits could add $900 in phantom payments. Brokers avoid this by selecting lenders that only consider actual owing amounts, maximizing client qualifications. Similarly, child tax benefits vary: some lenders use only 30-50%, while others allow 100%, leading to vastly different pre-approval figures.Wrapping up this quick weekly update aimed at five minutes or less, Scott encourages realtors to refer clients to experts like his team at LendCity for strategy calls. This approach not only secures better rates and terms but also builds client trust, ultimately helping realtors close more deals. Key TakeawaysInsured Mortgage Rates: For purchases with less than 20% down, lowest 5-year fixed at 3.69% and variable at 3.45% as of November 2025—ideal for first-time buyers but includes CMHC fees.Insurable vs. Uninsurable Options: Insurable (20%+ down, 25-year amortization) offers rates like 3.69% fixed and 3.69% variable; uninsurable (30-year amortization) starts at 4.24% fixed and 3.95% variable for greater flexibility.Avoid Bank Defaults: Sending clients to their bank limits pre-approvals due to restrictive policies; brokers compare lenders to optimize qualifications and rates.Credit Card Debt Impact: Some lenders calculate 3% of full limits (e.g., $900 on $30,000 limits) even if paid off, reducing borrowing power—brokers select ones that only factor actual balances.Child Tax Benefit Variations: Lenders differ in usage (30%, 50%, or 100%), affecting pre-approval amounts; choose accordingly for maximum leverage.Broker Expertise Benefits: Access to multiple lenders ensures best terms, educates clients, and shifts preferences away from banks for better outcomes and more closed deals.Links to Show ReferencesLendCity Mortgages (for Strategy Calls and Pre-Approvals): lendcity.ca