lany factors affect
lenders’ decisions

SEVERAL items affect a
lender’s decision to
approve or decline an
applicant.

These include factors such
as the credit bu-eau report, the
stability and verification of the
stated income, the property
type and appraisal report, the
down payment confirmation,
and the lender’s specific guide-
lines for qualifying, an individ-
ual.

Clients can obtain conven-
tional financing up to 75% of
the appraised value of the prop-
erty or the purchase price,
whichever is less.

This does not mean that
you automatically qualify for
75% financing; other factors
such as the type and location of
the property, and whether or
not you qualify for the mort-
gage are taken into considera-
tion,

The applicant must also fit
within the Lender’s guidelines;
let me explain this — when you
apply for financing, part of your
qualification is based on your
gross debt service ratio (GDS
or GDSR) and total debt ser-
vice ratio (TDS or TDSR).

The GDS for conventional
mortgages is based on a per-
centage of your gross income
versus the principal, interest
and tax payments,

Relocation
Retirement
Recreation

Let's look at an example, if
your gross earnings are $5,000
per month and you apply for a
three year term mortgage
whose rate is 10.50% com-
pounded semi-annually.

You need a mortgage of
$150,000 amortized over 25
years thus the monthly pay-
ment would be $1,392.49.

“The average
GDS ratio used
by lenders for
qualifying an
applicant is 32%
but this varies
from lender to
lender...”

Let’s assume the net tax pay-
ment is $75 per month then
the GDS would be calculated
as follows:

a)

I 467. 49 divided be the
gross income of 5 ,000,00=
29.35% or 30% GDS.

Therefore, you are within
the Lender's guidelines for this

item. The average GDS ratio
used by lenders for qualifying
an applicant is 32% but this
varies from lender to lender,
which is one more reason why
a broker can assist you because
as mentioned before, the bro-
ker is knowledgeable of the
terms and conditions of the
lenders.

Ifyour GDS exceeds 32%, it
does not mean all is lost; there
are other factors which the bro-
ker can use to try to convince
the lender to approve your
application especially if you are
a first time buyer.

For example, your credit
history may show that you have
never been late or missed the
minimum payment required on
your credit cards, department
store cards or gas cards or you
may have worked for the same
company for five years which
shows stability.

The TDS is similarly calcu-
fated but includes all other
debts such as car loan pay-
ments, payments on credit
cards, etc.

The average = maximum
TDS ratio used by convention-
al Lenders is 42%.

Please understand that there
is more to obtaining a mort-
gage than just completing an
application form and_ brokers
are here to help you through
the various steps.

Gibsons-

Secheit-Pender Harbour
Keats & Gambier Islands

Diana
Starbuck

T.F. Pager
1-604-979-5422

Ocean view contemporary, gourmet luxury
A kitchen, dream bathrooms, sunken living room,
& 3 bdrms open onte separate decks, private set-
Biting across from beach, prime west Gibsons
# location. $259,000

8 Luxury Waterfront living, ‘3 ve old a2 bedroom,
2 bathroom condo, gorgeous ocean, island,
AM mountain views, level beach, walk to Gibsons
# marina, transportation at door, covered parking.
& $189,900

Roberts Creek "view acreage $499,900.
Custom built country home on 2.5 acre wi &
ocean view 3 bdrm, den, solariunvstudiv, huge &
formal dining rm, & separate guest suite. Ideal §
B&B, equestrian centre & beaches nearby.

Executive Sante Fe rancher - Roberts Creek §
$319,000. Custom 2,290 sq. ft. rancher, radiant |
heat, 4 bdrm, dream kitchen, darkroom, sepa- §
rate workshop, approx 1/2 acre, fish pond, §
deck, gorgeous landscaping in quality area near §
beaches.

Box 335 Gibsons B.C. VON 1VO
Phone (24 hrs.) 1-800-837-3870

or Van. line 681 ~3044

$209,900

eneeeey

TOP NOTCH ONE LEVEL HOM

4 with double car garage entry. Full ensuite bath

and family room off kitchen on gorgeous

property with good privacy. Excellent location,
B nice street appeal and lovely decorating make

this property a "MUST" to show. Call Donna
a Theberge.

TWO BEAUTIFUL RECREATIONAL
PROPERTIES!!

f Unique country hide-away - Access by
g swinging bridge, tastefully designed to fit into
§ the wilderness experience- only a stones throw
# frorn the river. Enjoy the peacefull treed lot -
B good terms on crown land lease.Asking
# $68,000 - Call Ted Craddock.

4 Fully liveable year round - Nicely located on

property for sunshine and view, good water,
very private backing onto Garibaldi Park,
propane hot water, heater, Fisher woodstove,

f large deck, 15 minutes from Hwy 99 Squamish

Gof Course. Asking $122,500 - Call Ted

Craddock.

e pet nereiee : ‘hb

EXCITING CUSTOM HOME:
Features include top of the line floor coverings,
conservatory off master bedroom, 50 year

E siding, Bl vacuum & security system, Kohler

plumbing fixtures, "silent" floors and much
more. Call Spen Hinde.

EXCELLENT FAMILY HOME

H with large, sunny fenced back yard. Four
bedrooms and recent updates with roof,
‘ flooring and paint. Call Marianne Wilson.

EXCELLENT FAMILY HOME INA GREAT
LOCATION!

y features 3 bedrooms up, gorgeous pine

kitchen, fireplace, plus a fully finished lower

; leval with 3 bedrooms, kitchen, woodstove &

workshop, large multi-sundeck to enjoy the
panoramic views! 2880 sq.ft. of fine family

f living. Call Pam Dewar today.

$244,900

MAJOR RENOVATIONS OVER THE PAST

‘ FEW YEARS

f New roof on house & garage, new kitchen
B cabinets & twin seal windows, new siding &
soffits & 2 new gas fireplaces. Also 4

bedrooms, and a detached garage &

8 workshop. All located on one of the few

available 1/2 lots in the Garibaldi Estates. Call

& Dan Sullivan.

LOOKING FOR A GREAT FAMILY HOME??
if so have a look at this well maintained home.

“Hf Very quiet area - ideal for a family. features: 3

bedrooms, 3 bathrooms of which one is an
ensuite. Nice back yard with lots of trees and

* an area for a garden, Call Dan Sullivan today.

[oy

8

BLACK TUSK __
REALTY LTD. ~*~

bee 8 NE, uty PC ee
NEARLY 3000 SQ.FT. ON 1/3 ACRE IN
GARIBALDI ESTATE:
five bedrooms, 3 bathrooms and 2 kitchens. Works for
a large family or BED & BREADFAST - beautiful §
grounds, lovely home. Calt Marianne Wilson,

with all new plumbing, wiring, new gas fumace fj‘:

and hot wates tank - brand new propane ff
furnace, water heater and cook stove. Stained §f
glass windows & more. A must to seel. Call I
Dorothy Swanson. ..

QUALITY THROUGHOUT - VERY PRIVATE! f.
Oak and tile, beautifully landscaped, too many
extras to mention. Four bedroams up plus an |
open tibrary on landing. Large den, crawl ]
space for storage, a must to see and priced t
sell. Call Dorothy Swanson.

THIS HOME IS PRICED TO SELL!

Lots of street appeal, very private fot in
Garibaldi Highlands, 4 bedrooms & den &: §
family room, targe kitchen, new bathroom. |
upstaires, ensuite plumbing, these are only a.
few of the fine features of this home. No &
neighbours behind: Make an appointment a
with Ronnie McCartney . 4

THE PRICE HAS BEEN REDUCZDI!.
Located on a very quiet street in Garibaldi:
Highlands is this attractive home surrounded’ f
by trees & shrubs. 4 bedrooms, family ‘room, i
bright kitchen, corner fireplace in living roorn & . F
a bay window, there is even a garage for dad:

Large lot with deck & a gorgeuus: mountain, .

view. Call Ronnie McCartney.

PRIVACY, ‘SECLUSION AND A LONG
SPRAWLING RANCHER
Nestled away on a quiet street in Brackendale.  §
This is a extremely large (2500 sq.ft.) 4 i
bedrooms, separate dining room, family room, §
games room and priced well to sell. Call §
Ronnie McCartney on this one. E

iG penal ae 7
EXCELLENT ONE LEVEL HOME CLOSE TO
OWNTOWN AMENITIES
Character features, ie. built in leak china
cabinet. Numerous upgrades include river
stone hearth and exclusive “Hearth Heater" fj
fireplace, new wood flooring in tamnily room and ff
nice fresh paint and carpeting. Shows very §f

weil. Call Donna Theberge.

38235 CLEVELAND AVE.
BOX 477, SQUAMISH
; TEL: 892-5924
689-5818 (van. Direct) —