High Net Worth Focus: GMG U.S. Super Jumbo+ & LADMI

World's Most Expensive Home - Global Mortgage Group Asia

Direct from our Loan Development Team – we have created a solution which allows our international high-net-worth clients to use their liquid asset portfolio to qualify for a U.S. mortgage loan without pledging or encumbrance, nor the requirement of any minimum deposit held at a bank (AUM).

Introducing “GMG U.S. Super-Jumbo+" & "LADMI"

  • Are you a businessperson with low reported income?
  • Are you retired with little to no fixed income? 
  • Are you self-employed but with little to no “provable” income? 
  • Are your assets held in a bank with a U.S. branch or presence?
  • Do you have Trust assets with completely unrestricted use?

If you answered Yes to any of these questions, you will qualify for this program. 

Asset Rich, but Cash Poor?

It’s a common issue for high-net-worth investors who report low income but have sizeable asset portfolios including stocks, bonds and other liquid securities.  

Traditional banks require pay stubs, employment letters, and credit scores (we have fantastic programs for this as well), but many of our clients are not in the corporate world and require more flexible programs to suit their specific needs.

Separately, private banks will undoubtedly require Assets Under Management (AUM) and normally at least the amount of the mortgage.

We are seeing a trend that high-net-worth investors are now open to looking at financing options outside of their private bank, even if the rate is higher than the subsidised rate they would get from their private bank.  

“A small price for freedom,” as one of our European clients recently told us. 

Introducing: Liquid Asset Derived Monthly Income “LADMI”

Salient Points:

  • Qualify for a loan using your liquid asset portfolio instead of income from employment.

  • No AUM (Assets Under Management) or encumbrance of your portfolio at all, rather, it is ‘only’ to qualify for a loan. 

  • Liquid Asset Derived Monthly Income (LADMI) is calculated by taking total liquid assets and dividing by the duration of most mortgage loans, 360 months (30 years). 

  • LADMI allows you to prove your ability to service the debt without regular income from employment – great for entrepreneurs and high-net-worth investors! 

  • No need to show any other sources of income or employment.

  • If your LADMI is sufficient to service the mortgage – as well as regular living expenses – you can qualify based solely on this calculation.

  • No need to cash-in your portfolio or encumber in any manner. 

  • Your assets are used “only to demonstrate” an ability to make the mortgage payments. 

Commonly-used Liquid Assets:

  • Checking or savings accounts 
  • Money market accounts 
  • Certificates of Deposit (CD) 
  • Investment accounts such as stocks, bonds, crypto, and mutual funds
  • Liquid retirement accounts

[Note] All accounts, banks and or brokerages will be required to have a U.S. presence. IE Fidelity, Capital, Coinbase, Charles Schwab, HSBC etc.

Here is an example:

59-year-old mortgage borrower has:

  • Cash: $750,000
  • Investment portfolio: $3,500,000
  • Cryptocurrency: $300,000
  • Liquid retirement fund: $500,000

    = Total Liquid Assets: $4,300,000 (2+3+4)

This is how we calculate LADMI:

  • Cash: $750,000
  • Total Liquid Assets: $4,300,000
  • Discount Factor: 30%
  • Discounted Liquid Asset Value: $4,300,000 x 70% = $3,010,000

    = Total Allowable Assets: $3,010,000 + $750,000 = $3,760,000

    = LADMI = $3,760,000/360 months = $10,444

In this case, we will calculate the borrower’s maximum mortgage payment based on a monthly ‘income’ of $10,444.

The next question you will ask is, what kind of property can this get me?

If we assume a minimum 43% debt to income ratio (DTI) for most lenders and use the current market mortgage rate, you can qualify for a US$1M home (approximately $4,000 P+I monthly payment).

[Note] This is just an example and there are many factors that go into qualifying for a mortgage. This illustration is show that you do not need a salary to qualify for mortgages anymore thanks to our program. 

If you have any questions about our GMG U.S. Super-Jumbo+, LADMI or any of our international mortgage or asset-backed financing solutions, please contact us at: hello@gmg.asia or send me a confidential Whatsapp at +65 8499-3229.

Hong Kong Businessman required financing for a private jet

Hong Kong Businessman finances private jet

The Client

Given the COVID-19 pandemic, our client decided to invest in a private jet for his future travels when countries begin to open travel restrictions. Referred to us by a former customer of GMG, the client required US$10M to purchase a G550 normally valued at US$20M.

How We Helped

Given the slowdown in global travel, the agent was offering the pre-owned 2011 vintage plane at a steep discount of US$13M, which would normally be unavailable.

Our team found aviation financing from a specialist lender at favorable terms of 3.5% on a 5-year loan. The entire transaction was completed in 30 days.

NationalityResidenceIndustryAsset ValueLoan Amount
Hong Kong Citizen​​Hong Kong​ ManufacturingUS$20,000,000​US$10,000,000

Asian Family Office required a loan on their existing commercial fleet of vessels towards a distressed asset purchase

Asian Family Office loan

The Client

A friendly competitor in our client's industry faced financial difficulty and needed to raise cash to pay off a loan coming due and offered his commercial vessels for sale below market prices. Our client required US$15M to purchase Supramax vessels at a price significantly below their FMV broker valuations.

How We Helped

Since their traditional financing options have been very restrictive over the past 12 months, the client needed flexible options quickly.

We were able to secure a bridge loan at 45% of the FMV value with terms that met the client’s requirements.

NationalityResidenceIndustryAsset ValueLoan Amount
Asian Family Office​Singapore ShippingUS$35,000,000US$15,800,000

Great Real Estate Reshuffling

Great Real Estate Reshuffling

According to a survey by Zillow, 1 in 10 Americans has moved in the past 12 months. With the COVID-19 vaccine implementation and the economy and housing market recovering, Zillow predicts that this number could increase to more than 40 percent in 2021; this means that millions of households could enter the housing market in 2021.

What prompted the Great Reshuffling?

A significant cause of the Great Reshuffling is due to the fact that work-from-home became a norm during the pandemic. Homebuyers quickly caught on to the fact that they can live and work in their dream home and location as long as they have an internet connection. Approximately 75% of those surveyed reported moving for positive reasons, such as being closer to their family, friends, or simply living in their desired part of the country.

Many cities, known as "secondary cities" across the country, have seen a massive influx of movers looking to take advantage of bigger homes with lower prices. According to Zillow, there has been an uptick in the number of people moving to the South over the past year.

The rise in people moving to more affordable areas has triggered a wave of first-time buyers. This is especially true in Phoenix, Charlotte, N.C., and Austin. Zillow's data also showed the highest for-sale inventory climb in 4 major real estate areas – Los Angeles, Chicago, San Francisco, and New York.

We see this as an excellent opportunity for real estate investors, as over the past couple of months, the housing markets outside of the urban areas have flourished. "We have created a process specifically for our overseas clients which is easier, faster, and more transparent than international banks." Robert Chadwick, Co-Founder of GMG and America Mortgages.

At GMG, we understand our global clients' needs, and we provide solutions to match their needs. We make investing in U.S. real estate easy. Schedule a call with our mortgage specialists today.

Sources: Housingwire.com & Realtrends

Hong Kong citizen buys apartment near Cambridge for son during University

Hong Kong citizen buys apartment near Cambridge

The Client

Our client's son was recently accepted to Cambridge for university and wanted to purchase an apartment.

How We Helped

Our client saw our ad online in Chinese and came through our website. Our Cantonese-speaking team talked through the various loan programs available and why using our services would be better than the local international banks. We found our client a 25-year loan at 1.79% + Base Rate!

NationalityResidenceOccupationProperty ValueLoan Amount
Hong Kong CitizenHong Kong Lawyer GBP 950,000GBP 570,000
Loan to valueRateTermProperty Details
60%2 year tracker rate 1.79% + BOEBRUp to 25 yearsApartment, Cambridge, UK
NationalityHong Kong Citizen
ResidenceHong Kong
Occupation Lawyer
Property ValueGBP 950,000
Loan AmountGBP 570,000
Loan to value60%
Rate2 year tracker rate 1.79% + BOEBR
TermUp to 25 years
Property DetailsApartment, Cambridge, UK

Russian businessman buys a bungalow in Sentosa, Singapore

Russian businessman buys bungalow in Sentosa, Singapore

The Client

The client was referred to us by a friend who was also Russian and owned several condos in Sentosa. Our client wanted to purchase a home with the intention of moving his family over when their son was to start school.

How We Helped

Our team understood that the client was a Foreign National living overseas with no Singapore footprint. The challenge was to find the appropriate lender for his specific situation. His plan to move his family over was a big help in coordinating with the lender. In the end, we found an investor offering 60% LTV with a 1.35% floating rate mortgage.

NationalityResidenceOccupationProperty ValueLoan Amount
Russian NationalMoscow BusinessmanSGD 25,000,000SGD 15,000,000
Loan to valueRateTermProperty Details
60%1.35% pa3 year fixedBungalow, Sentosa
NationalityRussian National
ResidenceMoscow
Occupation Businessman
Property ValueSGD 25,000,000
Loan AmountSGD 15,000,000
Loan to value60%
Rate1.35%
Term3 year fixed
Property DetailsBungalow, Sentosa

Filipino living in Manila buys an apartment in Melbourne

Filipino living in Manila buys apartment in Melbourne

The Client

Our client saw our webinar and contacted our sales team in Manila.

How We Helped

Living in the Philippines, our client had limited access to finding a mortgage. She contacted GMG from an event we hosted in Manila and reached out to our team based there. She was surprised to hear that "International" mortgages were available, especially in the Philippines. Our team was able to find our client a 30-year loan at 50% loan to value. The entire process was handled without the client leaving the country.

NationalityResidenceOccupationProperty ValueLoan Amount
PhilippinesPhilippines LawyerAUD 600,000AUD 300,000
Loan to valueRateTermProperty Details
50%4.88% paUp to 30 YearsCoburg North, Melbourne
NationalityPhilippines
ResidencePhilippines
OccupationLawyer
Property ValueAUD 600,000
Loan AmountAUD 300,000
Loan to value50%
Rate4.88% pa
TermUp to 30 Years
Property DetailsCoburg North, Melbourne

U.K. Citizen in London purchases vacation home in Whistler

U.K. Citizen in London purchases vacation home in Whistler

The Client

Our client went to university in Canada and had always planned to retire in Whistler.

How We Helped

Our client was referred to us by his real estate agent in Whistler, whom we work closely with for overseas buyers who require a mortgage. Since our team only works with Overseas Expats and Foreign Nationals, we understood our client's requirements and found him the perfect program that matched his requirements.

NationalityResidenceOccupationProperty ValueLoan Amount
U.K CitizenLondon ConsultantCAD 2,400,000CAD 1,440,000
Loan to valueRateTermProperty Details
60%2.25%25 years Whistler, British Columbia
NationalityU.K Citizen
Residence London
Occupation Consultant
Property ValueCAD 2,400,000
Loan AmountCAD 1,440,000
Loan to value60%
Rate2.25%
Term25 years
Property DetailsWhistler, British Columbia

Canadian Expat living in Asia buys condo back home in Toronto

Canadian Expat buys condo in Toronto

The Client

Our client found our ad online and saw Case Studies that exactly resonated with him. He struggled to find a mortgage in Hong Kong, even as a high-earning salaried employee.

How We Helped

Our team of Canadian specialists have over 10 years of experience and are based in Hong Kong. Being able to meet our loan officers in person was a major plus for the client.

NationalityResidenceOccupationProperty ValueLoan Amount
Canadian CitizenHong Kong Investment BankerCAD 1,300,000CAD 845,000
Loan to valueRateTermProperty Details
60%1.85%25 years Upper East Village, Toronto
NationalityCanadian Citizen
ResidenceHong Kong
Occupation Investment Banker
Property ValueCAD 1,300,000
Loan AmountCAD 845,000
Loan to value60%
Rate1.85%
Term25 years
Property DetailsUpper East Village, Toronto