Sauder School of Business Real Estate Programs TOC--Busi221

BUSI 221 - Real Estate Finance in a Canadian Context

Baxter, D, Stanley W.H, and Daniel D.U. 2018. Real Estate Finance in a Canadian Context. Vancouver, BC: UBC Real Estate Division.

CHAPTER 1: Introduction to Mortgage Finance – Past and Present
Why Mortgages?
History of Canadian Mortgages
Mortgages and Monetary Policy
Functions of The Bank of Canada
Considerations in Establishing Interest Rates
The Mortgage Market
Characteristics of Mortgage Loans as Investments
Conclusion
Appendix 1.1: Mortgage Data Tables
CHAPTER 2: Mortgage Finance Market Participants
Chartered Banks
Credit Unions and Caisses Populaires
Trust Companies
Mortgage Loan Companies
Insurance Companies (Life Insurance)
Mortgage Investors and Dealers
Pension Plans
NHA Mortgage-Backed Securities
Private Lenders
Mortgage Brokers
Mortgage Fraud
Conclusion
Appendix 2.1: Mortgage Data Tables
CHAPTER 3: Real Estate Finance and Government Policy
History of Housing Policy in Canada
Role of The Canada Mortgage and Housing Corporation (CMHC)
Mortgage Loan Insurance
Mortgage Rate Insurance
Conclusion
CHAPTER 4: Property Law and the Law of Contract
Sources of Law and the Law of Property
Sources of Our Laws
Categories Within Our Legal System
Real Property Law
Estates
Interests in Land Less Than Estates
The Extent of Ownership in Land
Co‑ownership of Land
Land Registration Systems
Corporate Ownership of Real Estate
Common Items Appearing on Title
Subdivision of Land
Condominiums
Law of Contract
Void, Illegal, Voidable, and Unenforceable Contracts
Offer
Acceptance
Consideration
Legal Intention
Capacity
Legal Object
Genuine Consent
Termination of a Contract
Remedies
Conclusion
CHAPTER 5: Mortgage Law
Basic Mortgage Concepts
Implementation and Enforcement of Mortgages
Conclusion
CHAPTER 6: Mortgage Math Review
Interest Rates
Interest Accrual Loans: Future and Present Values for Lump Sums
Annuities: Introducing Payments into Financial Calculations
Financial Calculations for Annuities
Constant Payment Mortgage Loans
Investment Analysis: Net Present Value and Internal Rate of Return (IRR)
Conclusion
CHAPTER 7: Mortgage Underwriting and Residential Borrower Qualification
Five (5) Cs of Credit
Pre-Approved Mortgages
Lender Risks
Information Collection
Lending Policy
Mortgage Loan Insurance
Financial Terms of the Mortgage Contract
Conclusion
Appendix 7.1: Sample Credit Reports, Equifax (www.equifax.ca)
Appendix 7.2: Sample Credit Reports, Transunion Canada (www.tuc.ca)
CHAPTER 8: Commercial Mortgage Underwriting
The Role of Financing in Commercial Real Estate Markets
Application for Commercial Loans
Cash Flow Analysis
Lending Constraints
Nature of Covenants
Conclusion
Appendix 8.1: Summary Sheet for Loan Application
Appendix 8.2: Supplementary Checking Sheet - Estimates of Income and Expenditure
CHAPTER 9: Mortgage Loan Repayment Plans
Borrower and Lender Objectives
Interest Accrual Loans
Interest Only Loans
Straight Line Principal Reduction Loans
Constant Blended Payment Repayment Schemes
Payment Frequency
Partial Amortization and Outstanding Balances
Variable Rate Mortgages (VRMs)
Graduated Payment Mortgages (GPMs)
Sinking Fund Assisted Mortgages (SFAMs)
Reverse Mortgages or Reverse Annuity Mortgages (RAMs)
Participation Mortgages
Addressing Inflation Directly in Mortgages
Conclusion
CHAPTER 10: Loan Management and Refinancing Options
Prepayment and Irregular Payments on Mortgage Loans
Arrears and Default
Refinancing the Property
Loan Pricing: Valuati
Conclusion
CHAPTER 11: Development Financing
Overview of the Land Development Process
Development Financing
Construction Financing
Alternative Development Financing Arrangements
Conclusion
Appendix 11.1: Take-Out of Construction Financing
Appendix 11.2: Construction Loans Without Prior Long-Term Commitment
CHAPTER 12: Leasehold Finance
Types of Leases
Appraisal of Leasehold Interests
Conclusion