Kim Maleta - Unlocking Luxury: Navigating Mortgage Solutions with RBC's Kim Maleta

In this enlightening episode of The Property Mindset Podcast, host Phil Gadd is joined by Kim Maleta, RBC Mortgage Specialist, to explore how RBC is revolutionizing mortgage options for luxury real estate markets.

Discover RBC's unique programs like the Wealth Accumulator, designed to facilitate higher debt servicing for affluent clients, and learn about flexible down payment options for second homes and large-acreage properties.

Whether you're eyeing a vacation home or a substantial investment in a rural community, this episode offers essential insights into making informed financial decisions in high-end real estate.

Tune in to navigate the complexities of luxury property financing with expert advice from RBC.

Show Sponsor: First Tracks Real Estate Group - eXp Luxury

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Show Sponsor: First Tracks Real Estate Group - eXp Luxury

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Transcript

phil-gadd_1_04-29-2024_115922 0:36

Welcome back to The Property Mindset Podcast with me Phil Gadd. Today I'm joined by Kim Maleta who is the RBC mortgage specialist and she's going to basically explain how RBC is perfectly positioned to help with eXp Luxury here at First Tracks Real Estate Group.

kim-maleta_1_04-29-2024_115922 0:55

Yeah, thanks, Phil. RBC is the number 1 bank in Canada. 1 in 4 mortgages in Canada are held with RBC. And I believe that is because of all the different programs that RBC offers. We have a program called Wealth Accumulator. So the Wealth Accumulator program is specifically designed for those types of clients that maybe have a higher overall net worth have at least 250, 000 or more in liquid cash or investments. And for those types of buyers, RBC will actually allow for a higher debt servicing ratio. We can go up to 60 percent total debt servicing versus the normal 44%. So a lot of these types of buyers maybe have a high overall net worth and liquid cash or investments, but maybe they're self employed and don't claim as much income on paper. Those types of buyers we have programs specifically for. We also have a great second home program available through RBC. So clients that are looking to purchase a second home or potentially like a vacation property or cottage can get into those types of properties with as little as a 5 percent down payment.

phil-gadd_1_04-29-2024_115922 2:16

So a little word from our show sponsor today, eXp Luxury at First Tracks Real Estate Group. Imagine a real estate experience where your luxury property isn't just seen but showcased. Both locally and globally, eXp Luxury is about more than transactions. It's about transforming how high end properties reach the market. With a blend of unparalleled global eXposure, cutting edge marketing strategies, and an elite network of professionals, eXp Luxury ensures your property stands out in the luxury market.

kim-maleta_1_04-29-2024_115922 2:51

I would say overall in our area we're often classified, as rural for a lot of financial institutions. And that classification of more of a rural or small community often means clients need a little bit more for a down payment to get into a property. RBC is one of the only lenders out there that clients can purchase a property with a minimum 20 percent down payment up to 1. 25 million. And then anything above 1. 25 million just on the remaining balance does require a 50 percent down payment. But most lenders in our specific area, because we are classified as more of a small community or rural community They often will only allow for a 20 percent down payment up to about 800, 000. So that, that's a big difference as far as the overall down payment. There's definitely more options available with RBC.

phil-gadd_1_04-29-2024_115922 3:48

So yeah just going back to some of the first things you mentioned, maybe just explain a little bit more about how that sets you apart from other lenders.

kim-maleta_1_04-29-2024_115922 3:59

Yeah so most lenders allow for a maximum debt servicing. Industry standard is typically about 44%. With that Wealth Accumulator program, regardless of where the client is purchasing, We can go up to 60 percent total debt servicing, so it just allows for more flexibility, more options for clients that maybe, have some income that couldn't technically be used on the application or maybe they, have some outside the box situation where they don't want to have to pull out quite as much for investments to use towards a down payment to keep that debt servicing within line. So it just creates more options for financing. We can look at some different things that normally wouldn't be acceptable with that higher debt servicing.

phil-gadd_1_04-29-2024_115922 4:45

Are you finding more people struggling to find solutions for lending, because, the average price point in Fernie last month, it was 850, 000. That's just the average sale price. across the board with lots of properties selling well over a million dollars. How, is RBC set up for success in this current market?

kim-maleta_1_04-29-2024_115922 5:08

Question. It certainly is a bit of a challenge for a lot of clients to get into the Fernie market specifically, and we definitely do see some home buyers that maybe previously lived in Fernie or currently live in Fernie looking to purchase properties like in Sparwood and Elkford. I would say that the big challenge is getting into the market. Great thing is RBC actually deals with lots of different property types. So a really popular one for first time home buyers is actually. Like a mobile home on pad or kind of in a park type situation RBC is one of the only lenders that typically deals with these types of properties, regardless of the age of the mobile home. So I always say to clients, regardless of what type of property you're looking for. A pre approval with RBC can get you into that type of property. On the flip side RBC also does not have any kind of maximum acreage sizes, which again, industry standard is, oftentimes once it's over 5 or 10 acres, then it can be a little bit more challenging to purchase. So any type of property that has a large acreage with it. Okay. We typically have no problem financing these types of properties as well, but, more and more buyers need to be creative with their sources for down payment and how we're structuring applications. I try really hard to work with clients based on their unique needs and their situation. If they do want to get into a single family detached home in Fernie we might need to look outside the box and look at some unique ways to structure their applications to make it work.

phil-gadd_1_04-29-2024_115922 6:46

That's a really good point I'm hearing that more and more about how you need to be a lot more creative. about, how you structure something to get qualified. And also from my experience, just of a recent deal it was a higher end property, but Essentially because it was a large property, you got two families disposing of current real estate assets to purchase a larger asset in Fernie. You have programs for when maybe families are looking to do something like that? Parents may be in a and, the younger sort of family joining together. Yeah.

kim-maleta_1_04-29-2024_115922 7:25

we have as many programs specifically for that scenario. But obviously in Fernie and I think across Canada, in all honesty this concept of having a single family detached home with some type of rental suite in the basement or like a detached garage with a suite above is becoming more and more popular. RBC is really competitive with those types of properties as well. So if a client is purchasing a property that has a legal suite, we can get what we call a market rent report. The market rent report is going to be from a qualified appraiser, and it will give us kind of an overview of what that rental suite could be rented out for on a long term basis. We can then add that projected rental income. back onto the application to help the client qualify to purchase that home. So with any type of suite, whether it's a carriage house or like a suite in the basement, we can use 80 percent of that market rent report, 80 percent of the income back on the application to help the client qualify.

phil-gadd_1_04-29-2024_115922 8:35

I'm assuming the suite would need to be a legal suite.

kim-maleta_1_04-29-2024_115922 8:39

Yeah it does. And it needs to tick certain boxes. So it, it does need to have its own. separate entrance from the rest of the house. It has to be fully enclosed and it does have to have kind of a proper kitchen. If all that criteria is met, then typically we can get a market rent report. And alternatively, if we have a signed rental agreement, say, they have friends that plan to move into that basement suite, we can use 100 percent of that signed rental agreement for income back onto the application. So again, working with the client, understanding their unique situation and either using 80 percent with a market rent report or 100 percent of rental income with a signed rental agreement. But those are increasingly popular. I'd say over the last 2 weeks, I've probably run 12 different scenarios for clients and more and more. They are eXploring options of having that rental income to help them get into. either their next property or the first property that they're looking to buy.

phil-gadd_1_04-29-2024_115922 9:46

That's good information because like you say, people are needing to be a little bit more. Creative. Because not everyone has a million dollars set in the bank account. Is there any final thoughts that you'd like to add and how best can people get hold of you?

kim-maleta_1_04-29-2024_115922 10:02

Yeah. So people can reach out directly to me. They can phone, they can email you can visit rbc. com and on that site, you can search for a mortgage specialist either by name or you can search based on your area. I strongly believe that there is a huge benefit to working with a local lender.

phil-gadd_1_04-29-2024_115922 10:23

Absolutely. 100 percent agree. Yeah, if you're looking locally, there's nothing like, having someone who knows the area. And for anyone who does want to get hold of Kim all her information will be Below this video so you can click the link and reach out to her directly kim, I really appreciate you coming on today. Thanks very much There's some great information there that i'm sure people will find value in

kim-maleta_1_04-29-2024_115922 10:48

thanks so much for having me, Phil.

phil-gadd_1_04-29-2024_115922 10:50

Awesome Thank you. So a little word from our show sponsor today, eXp Luxury at First Tracks Real Estate Group.