“Closing a sale can take between 60 to 90 days, and that can cause problems for someone who needs funds to put down a deposit on the next home that they’re purchasing,” Greenspan explains. “While your home equity may be able to afford you a larger mortgage, you may not necessarily have the liquid funds you need for the deposit. In that event, when you’re waiting for your house to close, taking out a short term loan can prevent you from being stuck without a place to live. Tembo allows you to secure your new home before you close your sale on your current property. Loans are available for rental deposits, purchasing deposits, as well as other unique homeowner needs.”
As well as being available for individuals whose home have not yet sold, loans are also available for home owners eager to do renovations to maximize their property’s value, in preparation for putting it on the market. “A lot of people in today’s economy are asset rich and cash poor,” says Greenspan. “Their properties have appreciated in value at a faster rate than their incomes and, therefore, their savings and disposable income. By taking a short term loan, they’re able to invest it back into their home before listing, creating opportunity for a higher market value and greater profit.”
Greenspan has noticed that, rather than take out a loan, some Canadians prefer to move into a short term rental property when their property has closed and money has been released. This, says Greenspan is an expensive and time consuming option. “You have to the pay costs of moving into the rental, possible furniture storage costs and then another set of moving costs when you are ready to purchase a new home,” he says. “That’s not even factoring in the rental fees, which increase your costs exponentially. All of those expenses combined are often far higher than taking out a deposit loan.”
Greenspan advises homeowners to carefully select loans based on speed of availability, requirements, cost and the terms and conditions. “A lot of lenders have terms and conditions that include penalties for early repayment, but all of our loans are completely open and can be repaid at any time,” he says. “Instead of creating roadblocks for our clients, we look to tailor a solution and opportunity to their needs.”
The big banks have rigid borrower requirements and often refuse loans, even if the potential client is due to receive a significant amount of cash when their sale closes. “Certain lenders, such as Tembo Financial, are able to be more flexible with their approach,” says Greenspan. “That enable these lenders to offer solutions and products that are simply not available from banks.”
Tembo Financial is a non-traditional lender – check them out at www.tembofinancial.com
for more information or call 1-844-238-6717
Moving houses is stressful enough. But when all of your equity is tied up in your existing property, finding the funds to put down a deposit on your new home can seem impossible. REP sat down with Arryn Greenspan, President and CEO of Tembo Financial, to talk about the solutions available to people in this tricky situation.