CMP 11.04 Private Lending Guide

LENDING GUIDE

PRIVATE LENDING

MORTGAGEBROKERNEWS.CA

Haven’t taken the plunge into private lending yet? Here’s everything you need to know to get started PRIVATE LENDERS VS MICs | TIPS FOR PREPARING CLIENT FILES HOW TO KNOW WHEN A LENDER IS THE RIGHT FIT

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CONTENTS

PRIVATE LENDING GUIDE PRIVATE LENDER DIRECTORY 09 Cross-Canada directory

02

Locate the lenders who offer financing in your province

10 Private lender index

The pertinent details on 51 of Canada’s private lenders and MICs

11 Featured listings

SPECIAL REPORT

THE INSIDE SCOOP ON PRIVATE LENDING

Private lenders and MICs offer advice on finding solutions for nontraditional clients

Find more information on the products offered by select lenders

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SPECIAL REPORT

PRIVATE LENDING GUIDE

The inside scoop on private lending Nontraditional lenders offer timely solutions for brokers whose clients don’t qualify for mortgages from A lenders. Here, CMP examines the various private lending options brokers have at their disposal TIGHTENING BANK regulations are creating significant obstacles for Canadians who require financing to buy a property or inject funds into a project. Stringent new laws are putting pressure on the banks to change their underwriting methods and, as a result, are creating a void that many borrowers are falling into.

Private lenders and mortgage investment corporations [MICs] are stepping up to fill that void, offering alternative options for those turned down by the banks. The limitations facing A lenders have opened up opportunities for private lenders and MICs, whose flexibility allows them to help homebuyers who would otherwise be left with nowhere to turn. Private mortgage lenders often specialize in certain types of investments (commercial or residential) or scenarios (such as refinancing needed for renovations or debt consolidation).

The recently introduced 20% down payment requirement for non-owneroccupied investment property purchases is a key reason behind the increased demand for private financing. Tightened CMHC regulations around self-employed borrowers are also driving more Canadians to alternative lenders. Prime lenders are increasingly reluctant to offer mortgages to clients with bad credit scores or undocumented incomes.

MICs and private lenders are more likely to assess borrowers on the security and equity they can provide, rather than their credit history and income. For MICs and private lending companies, the emphasis is often on the value of the property owned by the poten-

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tial borrower. The mortgages offered are usually short-term, commonly ranging between three and six months and rarely beyond a year. Borrowing from an alternative lender should be seen as a means to an end, and brokers should advise clients to only use private money until they’re in a position to qualify for financing from a prime lender.

Brokers who have only worked with traditional lenders are often unsure about how best to navigate the private lending space. When looking at non-bank options, what are the differences between MICs and private lenders?

Different structures “In a MIC, individuals invest money in a pool of funds under a subscription agreement, term sheet or an offering memorandum that is approved by the securities commission,” says David Dexter, partner and CEO at Helmco Capital. “That agreement details what the MIC can and cannot do, what kind of

dividends, these MICs are able to lower the lending rate they can offer to clients. It also means they can attract better quality clients,” Dexter says. “These types of MICs are able to straddle the alternative and traditional lending markets.”

A MIC mortgage portfolio can include second mortgages on residential properties and commercial and development mortgages on new projects. Investments are usually based on an investigation and appraisal of the potential borrower’s property. In most cases, a MIC loan would not exceed 60% to 85% of the current value of the property.

Compared to MICs, private lenders are able to be even more flexible in how they adjudicate a loan and what types of loans they’re prepared to grant. “For example,” Dexter says, “if a large file comes along that is a good deal and meets all of the criteria, but it’s too big for the MIC because it would represent a high a percentage of the MIC’s capital,

“Because real estate is considered a reasonably safe place to invest, investors can put their money into a MIC and receive a higher return than they might elsewhere” David Dexter, Helmco Capital loans it can offer, what kind of leverage it has and what percentage of certain kinds of loans it can carry.”

MICs are usually provincially registered under the jurisdiction of the local securities commission, and every MIC manager must be cognizant of the local rules. Any profits a MIC makes must flow through to the investors.

“The security for a MIC is real estate,” Dexter says. “Because, over the long-term, real estate is considered a reasonably safe place to invest, investors [can] put their money into a MIC and receive a higher return than they might elsewhere.”

Many larger MICs often enter the public market and are traded, Dexter explains. In many ways, these large MICs act like a traditional lender. “By accessing the public marketplace and trading shares and declaring

we do that loan in our private pool of funds.”

“MICs have to lend based on the guidelines they’ve set up,” adds Rajan Kaushal, president of Tribecca Finance. “Because private lending companies lend out their own funds, they can lend to whomever they choose, and they have the ability to make exceptions.”

Advice for brokers Kaushal advises brokers to research the management team running the alternative lender before entering into an agreement.

“Look at the lending practices of the company and how they work with their borrowers in the case of a missed payment,” he says. “Brokers want to know they’ve placed their clients with a reputable lender with good practices. In our lending space, you need to have the infrastructure to be successful in the long-term.”

ABOUT OUR SPONSOR Atrium Mortgage Investment Corporation is a Canadian nonbank lender that provides creative financing solutions to the real estate communities in Ontario, Saskatchewan, Alberta and British Columbia.

Many mortgage providers are constrained by a lack of flexibility. We are flexible and nimble, and provide mortgages to quality borrowers where larger financial institutions cannot offer competitive terms and structures.

Typical loans are for purchases, refinancing, bridge financing, land assembly and infill construction, with annual interest rates of 8% to 10%, a one- to two-year term, and monthly interest-only payments.

Our credit approval and funding process is quick and efficient, with a fast turnaround time and superior quality service. We are proud of our creative deal structures that are customized to the borrower’s specific needs. We have a large range of property and loan types we would consider.

Our investment strategy is to invest in commercial and residential mortgages from borrowers whose financing needs are not being met by the larger financial institutions.

To maintain a stable yield on our mortgage portfolio, we manage risk through maintenance of a diversified mortgage portfolio, conservative underwriting, and diligent and aggressive mortgage servicing.

Mortgage loan amounts are generally $500,000 to a maximum of $20 million. As of December 31, 2015, the weighted average loan-tovalue on our mortgage portfolio was 64.7%, and the weighted average interest rate was 8.7%.

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SPECIAL REPORT

PRIVATE LENDING GUIDE Q&A

Dimitri Kosturos

An insight into private lending

Vice president VWR CAPITAL CORP.

In what situation might a broker need to approach a nontraditional lender on behalf of a borrower?

the borrowers ultimately realize that they need to downsize to a smaller home.

The typical application we see is from a borrower who may have trouble proving income but has a substantial amount of equity built up in residential real estate. Another scenario is when a real estate investor starts accumulating rental properties – we have no limits on the number of rental properties a borrower can own. We also lend to people who are trying to rebuild their financial lives – for example, recently discharged bankruptcy with a low or nonexistent Beacon score but enough equity to make the deal work.

How do nontraditional lenders assess borrowers?

For a client, what are some of the advantages of borrowing from a nontraditional lender?

Borrowers can use nontraditional lenders to get themselves out of a tough situation, to start a new business or to purchase a home. Nontraditional lenders can help borrowers access the equity in their homes to manage life’s ups and downs. The benefits are determined by the borrower’s situation and the planned exit strategy. If we are doing a debt consolidation, then the benefit is putting the client in a better cash flow position so they can build their credit back up and return to a traditional financial institution.

How important is it for brokers to help borrowers plan exit strategies from a nontraditional mortgage?

As a MIC, we are taking on an additional level of risk, and for that, we are charging a higher rate than a borrower can find at a bank or credit union. It is important that the borrower and broker understand that we are a short-term solution. The borrower should use the funds to put themselves in a better financial position so they can eventually return to a traditional financial institution. In some situations,

As a MIC, our primary focus is to determine the value and marketability of the real estate first; then we take a look at the borrower’s unique situation. If there is a close enough match to our underwriting policy, we will fund the deal. We are driven primarily by the real estate.

Do MICs and private lenders offer good solutions for borrowers in sticky situations?

Absolutely. We can finance people who are dealing with divorce, failed businesses, bankruptcy, consumer proposals, non-residents, recent immigrants, foreclosure, etc.

What should brokers look out for when doing business with a nontraditional lender?

It is important to know what products are available, what conditions will apply and what service level you can expect from various lenders. A broker should get to know a nontraditional lender before sending any business to them.

What sort of costs do nontraditional lenders typically charge?

In our transactions, all of the costs are for the account of the borrower. This typically includes broker fees, appraisal costs, legal fees and nominal lender fees.

There’s now more competition in the nontraditional markets than ever before.

Does that benefit both brokers and borrowers?

Absolutely. The market is growing, and that growth is fuelling innovation in products and service delivery.

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Brokers should ask their colleagues about MICs and private lenders they’ve done business with, advises Andrea Haines, regional manager for Eastern Ontario at Magenta Mortgage Investment Corporation. “There’s a number of new private lenders and MICs entering the market, so it’s important to make sure you’re working with a company that’s borrower-focused and not predatory,” she says. “Make sure the private lender has a good track record of funding their files. You need to know that, if a file has gone out, the money is going to be there to fund that deal by the day of the commitment. Getting advice from seasoned brokers with experience on the B side is important in placing your borrower with a company that has a good reputation.”

Haines also advises brokers to be honest about their client’s situation from the outset.

“On the B side, we know we’re dealing with non-conforming files,” she says. “So, let us know what you have and what you can get, because that will allow us to craft the commitment for your borrower upfront, which will cause far less stress.”

Hali Noble, SVP of residential mortgage investments and broker relations at Fisgard Asset Management Corporation, advises brokers to focus on selling private lending as a solution and to take the focus away from rates. “All we hear about in the media is rates, but that shouldn’t be the focus – nor is it, for the most part, the most important part of the

“All we hear about in the media is rates, but that shouldn’t be the focus – nor is it, for the most part, the most important part of the equation in a private lending solution” Hali Noble, Fisgard Asset Management Corporation equation in a private lending solution,” she says. “Canadian private mortgage consumers need to become better educated and understand that, because of their unique situation and changes to regulations such as B20, they may be paying higher rates.”

Noble believes that focusing on rates is short-sighted. “Working with their mortgage broker and a reasonable private lender on a plan that will get them back to a more conventional lender should be the focus and priority – not the lowest rate,” she says.

It’s also important to set realistic expectations with your borrowing clients in terms of fees and length of borrowing. Noble gives the example of a broker whose client has a Beacon score of 520. The broker approaches a private lender with the aim of tidying up the client’s credit and then, in a year, taking the client to a traditional lender. “With that low of a Beacon, what are the chances they‘re going to be able correct it enough in six to 12

months to approach a traditional lender? Very low, and will the lender the broker hoped to take them to still have a suitable product?” she says. “It may take upwards of 18 or 24 months to sufficiently fix the Beacon, so you need to find a private lender who will write those terms, as opposed to six to 12 months, with expense renewal fees or interest rate escalation clauses. You need to set client expectations from the beginning.”

Noble also stresses the need for brokers to choose a MIC or private lender that best caters to their client’s situation. “Suitability is key,” she says. “If you know you’re not going to be able to get that client out of the mortgage in six to 12 months, don’t put them with a lender who may not renew or has a very short-term appetite. Again, be realistic and deal with a private lender who offers longer terms right out of the gate. Those clients will love you for it and be your most loyal clients for life.”

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PRIVATE LENDING GUIDE 8 REASONS TO USE A PRIVATE LENDER OR MIC Your client, who owns multiple properties and is waiting for one to sell, needs a bridging loan.

Certain construction professionals prefer to use nontraditional lenders – there’s less red tape, and it’s easier for builders to get a release of funds during construction.

Private lenders and MICs can finance borrowers who don’t qualify for bank lending because they have too many properties in their portfolio.

In some cases, MICs and private lenders can fund a mortgage application the same day.

Creative deal structures can be customized to the borrower’s needs.

It’s a good option for fix-and-flip investors who only require money for a short time.

One of the most popular borrower uses of private funds is for second mortgages, which many banks do not grant.

Unlike banks, private lenders and MICs will work with investors who buy a distressed property and fix it up.

Having an exit strategy from private financing is essential, and brokers have a responsibility to help borrowers develop that plan.

Matthew Robinson, CEO of W.A. Robinson Asset Management and Pillar Financial Services, gives a compelling analogy for the importance of a planned exit. “If you’re getting on a boat and there’s no map, let alone a destination, you’re just floating around in the ocean, in a very expensive boat,” he says. “Brokers should look for the end game, for how they

because there’s more choice,” Noble says. “A good broker should have a few good private investors and MICs in their back pocket – they both play very important roles in the Canadian mortgage market.”

Haines also embraces competition and believes it plays an important part in strengthening the private lending market. “I have meetings with my competition; we talk amongst ourselves,” she says. “I’ve got no problem in advising brokers what alternatives

“We know we’re dealing with nonconforming files. So, let us know what you have and what you can get, because that will allow us to craft the commitment for your borrower upfront” Andrea Haines, Magenta Mortgage Investment Corporation can get their clients in a better place in the long run. They should be asking, ‘Where’s the cheaper money; where’s the better institution?’

Private lenders should be seen as intermediaries, bridging borrowers to a better place.”

Increasing competition Competition is heating up in the alternative lending market, as more MICs and private lending companies look to offer solutions for those impacted by the tightened B20 rules. “Competition is great for brokers

are available in my own space – another lender’s niche is going to be different from mine.”

Robinson believes that brokers working within the private lending sector need to go back to basics and focus on building trust and relationships. “Brokers need to develop relationships with lenders, as well as borrowers, in order to create win-win-win situations,” he says. “I think we’ve lost that in the industry. In this day and age, we should be able to structure deals in which everybody comes out with a win.”

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SPECIAL REPORT

PRIVATE LENDING GUIDE Q&A

Phil Fiuza Managing director of single-family mortgages ATRIUM MORTGAGE INVESTMENT CORPORATION

Everything you need to know about MICs CMP caught up with Phil Fiuza of Atrium Mortgage Investment Corporation to get his thoughts on the growing number of MICs in the private lending space What role do MICs play in the Canadian lending market?

MICs offer brokers and their clients access to the alternative, non-bank mortgage market. Many mortgage providers are constrained by a lack of flexibility. MICs have the flexibility and expertise to provide mortgages to quality borrowers where larger financial institutions do not offer competitive terms, structures and pricing.

Through 2015 and into 2016, brokers continue to struggle with policy changes and moving-target underwriting criteria.

What are the benefits for a broker who approaches a MIC for financing?

Let’s assume a purchase scenario: A borrower is self-employed and needs 75% to 80% on a purchase of $1 million. They don’t have all the necessary paperwork to get a mortgage from a traditional lender, so they are faced with a sliding scale, let’s say 65% LTV. So, they have to use $150,000 more of their own funds to go with a traditional lender – a $350,000 down payment versus $200,000. The borrower can take our term, which is generally one year (fully open after six months) to get their paperwork in order, and then refinance with a traditional lender at a lower rate.

Do MICs fill an important gap in the market?

Absolutely – and not just for borrowers, but for investors as well. MICs are an easy way for shareholders to invest in a portfolio of mortgages without getting into owning individual properties.

What are the terms and costs associated with MIC lending?

Not many MICs offer terms beyond two years. It’s the nature of the portfolio, and deals don’t really work when

borrowers are paying higher rates for an extended period of time. We have the ability to keep our fees between 1% and 1.5% on 95% of our deals. Generally speaking, 1% to 3% of the loan amount is the average.

What advice would you give to a broker who hasn’t worked with a MIC before?

Do your homework. There are a number of MICs operating in the Canadian market, nationally, provincially and regionally. We all have our niches and different solutions for brokers.

It’s funny, I go to trade shows and watch brokers walk past booths with MIC representatives and say something like, “I don’t know them” or “I’ve never dealt with them” and keep walking by. A week later, they are having a deal co-brokered to us and splitting their fee with someone else (someone who did their homework) because they didn’t use their time effectively. Use the trade show hours, seminars and product presentations as time to learn, and mingle after.

At Atrium, we find that brokers who use us once use us often. It’s no different than with any other lender.

Brokers get comfortable with certain lenders and tend to stick with them because of the comfort factor.

Where do you see the future of lending going in Canada, both for traditional and nontraditional lenders?

Every month, I see a new player enter this field. It’s competitive out there – public MICs, private MICs and private lenders. This segment will keep growing. Many say that a real estate correction will scare many of these lenders away, but I don’t think so. These are well-run organizations with experienced people, many with years of experience with major lenders. They are well prepared for the future of this business.

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Cross-Canada directory Check out the private lending options in your province Alberta

Manitoba

Ontario

Newfoundland

Atrium Mortgage Investment Corporation

Bayfield Mortgage Professionals

Atrium Mortgage Investment Corporation

Atlantic Signature Mortgage & Loan

Bayfield Mortgage Professionals

Fisgard Asset Management Corporation VWR Capital Corp.

Fisgard Asset Management Corporation VWR Capital Corp.

CYR Funding Magenta Capital Corporation

Prince Edward Island

Mortgage Company of Canada

Atlantic Signature Mortgage & Loan

Pillar Financial Services

British Columbia

Tribecca Finance

Atrium Mortgage Investment Corporation

VWR Capital Corp.

Bayfield Mortgage Professionals Blueshore Pacifica Alternative Mortgage Centre Fisgard Asset Management Corporation

Saskatchewan Fisgard Capital Corporation VWR Capital Corp.

New Brunswick Atlantic Signature Mortgage & Loan

VWR Capital Corp.

Note: Not all lenders shown

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PRIVATE LENDING GUIDE PRIVATE LENDER DIRECTORY COMPANY

WEBSITE

PHONE NUMBER PAGE

COMPANY

WEBSITE

PHONE NUMBER PAGE

7 Park Avenue Financial

www.7parkavenuefinancial.com 416-319-5769

Home Fund Corporation

www.homefund.com

416-696-9866

Aaron Acceptance

www.aaronacceptance.ca

866-434-9992

IC Savings

www.icsavings.ca

416-784-0200

Accepted Financial Corporation

www.acceptedmic.com

604-727-6111

KV Capital

www.kvcapital.ca

780-433-1222

AP Capital

www.apcapital.ca

778-328-7401

Magenta Mortgage Investment Corporation

www.magentainvestment.ca

888-267-1744

Armada Mortgage Corporation

www.armadamortgage.com

888-467-6449

Mandate National Mortgage Corporation

www.mandatemortgage.com

604-731-2899

Atlantic Signature Mortgages

www.atlanticsignature.com

902-406-1250

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Mid-Island Mortgage & Savings (Qualicum)

www.midislandbroker.com

250-752-6944

Atrium Mortgage Investment Corporation

www.atriummic.com

416-607-4209

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Mortgage Alliance – The Mortgage Boutique

www.mortgagealliance.com/ themortgageboutique

647-403-3332

Bancorp Financial

www.bancorpfinancial.com

604-608-2717

Mortgage Company of Canada

www.mcoci.com

905-886-5352

Bayfield Mortgage Professionals www.bayfieldonline.com

604-533-4478

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Mortgagequote.ca

www.mortgagequote.ca

866-948-7283

Blueshore Pacifica Alternative Mortgage Centre

www.blueshorepacifica.com

604-899-3780

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New Haven Mortgage

www.newhavenmortgage.com

416-636-0000

Calvert Home Mortgage Investment Corporation

www.chmic.ca

403-278-0249

Pacifica Mortgage Investment Corporation

www.pacificamortgage.ca

604-899-3799

Canada Lend

www.canadalend.com

905-881-0242

Peace Hill Trust

www.peacehills.com

506-455-3430

Canadian Mortgages Inc.

www.canadianmortgagesinc.ca

855-340-8543

PHL Capital Corp

www.phlgroup.ca

604-575-7408

Capital Direct

www.capitaldirect.ca

800-814-2578

Pillar Financial Services

www.robinsonsgroup.com

613-279-2116

Capital West Mortgage

www.capitalwest.ca

604-899-3799

Pioneer West

www.pioneerwest.com

604-987-1420

Caplink

www.caplink.ca

888-429–0114

Poga Capital

www.pogacapital.com

800-919-4410

Classic Mortgage

www.classicmortgage.ca

888-869-4912

Premier Mortgage

www.mortgagescanada.net

866-470-4404

CMLS Financial

www.cmls.ca

416-646-1005

Private Lender Inc.

www.myprivatelender.com

403-253-2022

Community Trust

www.communitytrust.ca

800-268-1576

Romspen

www.romspen.com

416-966-1100

Cooper Pacific Mortgage Investment Corporation

www.cooperpacific.ca

250-475-2669

Tekamar Mortgages

www.tekamar.ca

800-658-2345

Terra Firma Capital Corporation

www.tfcc.ca

416-792-4700

Cove Mortgage

www.covemortgage.com

604-929-8156 Tribecca Finance Corporation

www.tribecca.ca

416-225-6900

CYR Funding

www.cyrfunding.com

905-731-1111

Unimor Capital Corporation

www.mortgageapprovalhelp.ca

519-255-9505

Effort Trust

www.efforttrust.ca

416-924-4680 Verico The Mortgage Leaders

www.petermenicucci.com

877-777-7308

First Circle Financial

www.firstcircle.ca

604-986-3200

Fisgard Asset Management Corporation

VWR Capital Corp.

www.vwrcapital.com

866-907-5407

www.fisgard.com

250-382-9255

Ginko MIC

www.ginkgomic.com

416-901-5133

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14 This list is not a complete directory of Canada’s private lenders and MICs. If you would like to be added to the next list, which will be published in November, please contact Trevor Biggs at trevor.biggs@kmimedia.ca.

Featured lender

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ATLANTIC SIGNATURE MORTGAGE & LOAN

www.atlanticsignature.com

902-406-1250

Lending markets: Nova Scotia, New Brunswick, Prince Edward Island, Newfoundland – urban and rural community centres Niche/focus: Residential, income-producing multi-unit properties, renovation and construction, small commercial mixed use, land Products: First and second mortgages Customer type: Consumer, small business, developer, experienced builder

Property type: Single-family, multiples, large homes, mixed use, commercial, condos, land

Maximum amortization: Typically interest-only Feeds: 4% lender fee

Purpose: Common-sense solution-based lending for bridge financing purposes

Preferred loan amount: $50,000 to $3 million

Maximum LTV: 80% residential in urban core, 65% commercial, 50% land Minimum Beacon: None Terms: Typically one year Rate type: Fixed

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PRIVATE LENDING GUIDE ATRIUM MORTGAGE INVESTMENT CORPORATION Lending markets: Ontario, Alberta and BC (major urban centres) www.atriummic.com

Purpose: Purchase and refinance; owner-occupied, rentals and investors

Niche/focus: Alternative

Maximum amortization: Interest-only Fees: 1% to 1.5%

Maximum LTV: 80% 416-607-4209

Products: Term mortgages, bridge mortgages

Minimum Beacon: None

Customer type: Alternative

Terms: One to two years

Property type: Single-family, multi-plexes, commercial and construction

Rate type: Fixed

Preferred loan amount: Over $100,000, or over $500,000 for construction

BAYFIELD MORTGAGE PROFESSIONALS Lending markets: BC, Alberta, Manitoba www.bayfieldonline.com

604-533-4478

Niche/focus: Commonsense equity-based lending on residential and commercial properties on exception. Not limited to a specific market type, GDS/TDS limits or proof of income. Re-advanceable product now available on exception bases Products: First, second and

occasional third mortgages

Terms: One to two years

Property type: Single-family, duplex, townhouse, bare land, construction (draw financing), condos and apartment-style condos

Rate type: Fixed/open

Purpose: Equity lender Maximum LTV: 75 %

Maximum amortization: 40 years Fees: All fees are fair and negotiable Preferred loan amount: Up to $1 million

Minimum Beacon: None

BLUESHORE PACIFICA ALTERNATIVE MORTGAGE CENTRE

www.pacificamortgage.ca

Lending markets: Greater Vancouver and larger regions in BC

Purpose: Purchases, refinances, and equity take-outs Maximum LTV: 75%

604-899-3780

Niche/focus: Common-sense lending for borrowers with realistic repayment plans Products: First and second mortgages Property type: Residential properties

Minimum Beacon: None; credit to be reviewed on a case-by-case basis Terms: One to two years for Pacifica; one to five years for Blueshore Financial

Rate type: Fixed or floating Maximum amortization: Interest-only or 30-year maximum Fees: 2%, typically split with the broker Preferred loan amount: $100,000 to $5 million; will lend over $5 million under the right conditions

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CYR FUNDING Lending markets: Anywhere in Ontario, and possibly other locations

www.cyrfunding.com

Niche/focus: All types of financing 905-731-1111 Products: First and second mortgages, construction, land, special purpose, residential, commercial

Customer type: Customers needing mortgages

Minimum Beacon: None Terms: Depends on the deal

Property type: Any type of property, if it makes sense

Rate type: Depends on the deal

Purpose: Purchases, refinances, developments, building, debt consolidation, matrimonial payouts

Maximum amortization: 30 years

Maximum LTV: 85%

Preferred loan amount: $25,000 to $100 million

Purpose: Purchase, refinance, equity take-out, debt consolidation, low-doc

Maximum amortization: 25 years

Fees: To be determined

MORTGAGE COMPANY OF CANADA Lending markets: Ontario (GTA and Golden Horseshoe) www.mcoci.com Niche/focus: Residential, commercial, construction

905-886-5352

Products: First and second residential mortgages, commercial, construction

Fees: Starting at 2.5% Maximum LTV: 80% (85% in the GTA)

Preferred loan amount: Up to $1.75 million

Minimum Beacon: None Terms: One to two years

Property type: Single-family Rate type: Fixed, P&I and interest-only

info@atlanticsignature.com | 902.406.1250

get paid

TWICE*

YOU CAN HAVE YOUR CAKE AND EAT IT TOO • Prompt • Professional • Customer Focused Short-term lending solutions for Atlantic Canada’s major urban and rural communities.

From $25,000 to $3,000,000.

Call us today: 902.406.1250 *Earn applicable referral fees on bridge financing and then on the take out financing. Contact us for details.

www.mortgagebrokernews.ca

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SPECIAL REPORT

PRIVATE LENDING GUIDE FISGARD ASSET MANAGEMENT CORPORATION

www.fisgard.com

250-382-9255

Lending markets: BC, Alberta, Manitoba, Ontario, Saskatchewan Niche/focus: Filling the void for conventional, alt A and B lenders and Canadian mortgage consumers that require ‘outside of the banking box’ mortgage financing.

Products: Residential first and second mortgages, construction, commercial Customer type: Businessfor-self, stated income, bruised credit, low-doc, income challenged, CRA issues, new to Canada, bridge/interim financing, short-term financing (up to two years), recent bankruptcy, foreclosure, consumer proposal, builders (including owner-builders), commercial borrowers

Property type: • Residential: owneroccupied, rentals, recreation/vacation, student housing • Construction: single-family, multi-family, renovation • Commercial: retail centres, offices, mixed use, fully tenanted industrial, condo inventory, lot inventory Maximum LTV: 75% (up to 85% on exception) Minimum Beacon: None Terms: Fully open, up to two years

• Commercial: 7%+ Maximum amortization: Most loans are interest-only but can be amortized up to 40 years Fees: • Residential: No lender fee, no renewal fee (on first renewal and if paid as agreed), no pre-payment penalties (fully open) • Construction: 2% • Commercial: 1%+ Preferred loan amount: $30,000 to $5 million (will participate in larger loans)

Rate: • Residential first: 7% to 8.85% (up to 75%) • Residential second: 9.85% to 12.85% (up to 75%) • Construction: 8.5%+

MAGENTA CAPITAL CORPORATION

www.magentainvestment.ca

888-267-1744

Lending markets: Eastern and Southwestern Ontario, primarily urban settings Niche/focus: Owner-occupied properties, single and multi-unit rental properties, student rentals, commercial, mixed use, construction, renovation loans and raw land Products: First and second residential mortgages, construction, renovation loans, seasonal properties, lot and land, equity lending, small commercial and mixed use, as well as no-doc and stated income products

Customer type: Experienced builders, self-employed, salaried, bruised credit, new to Canada, nontraditional income sources – anything that falls outside of regular bank parameters

Terms: One to two years

Property type: Single-family, multi-use residential, large homes, stores, apartments, condos

Fees: Generally a 2.5% lender fee for first mortgages, 3% for second mortgages and raw land, subject to change with specials

Purpose: Purchase or refinance; bridge lending available

Preferred loan amount: Residential properties up to $750,000; small commercial up to $1.5 million. No minimum loan amount, but a minimum fee on our second of $2,000

Maximum LTV: 85% Minimum Beacon: None

Rate type: Fixed Maximum amortization: 40 years; interest-only available

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Credit  Income  Debt Servicing  Title Issues  Down Payment  Immigration Status SPONSORED BY

Alt A And B comBined for one stop shopping When the property is not the problem, SIMPLE, FAST, FRIENDLY, DONE. To discuss a potential file to see if it’s a good fit with Magenta’s programs, to learn more about how Magenta can support your sales goals, or to escalate any mortgage issues:

Serving Ottawa and Kingston (and surrounding areas), Gatineau, London, Cambridge, Guelph and Kitchener-Waterloo.

Gatineau

CALL:

Ottawa

Andrea Haines

Regional Manager-Eastern Ontario

Cell: 613 850 0711

Brockville

Andrea.haines@magentainvestment.ca

Dan Pauls

Regional Manager-Southwestern Ontario

Cell: 519 500 3330

Dan.pauls@magentainvestment.ca 580 Terry Fox Drive, Suite 401, Kanata ON, K2L 4B9

Specializing in first mortgages, second mortgages, construction and raw land.

Kingston Guelph Kitchener-Waterloo Cambridge

London

Serving the brokerage community for over 22 years

www.magentainvestment.ca

www.mortgagebrokernews.ca

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SPECIAL REPORT

SPONSORED BY

PRIVATE LENDING GUIDE PILLAR FINANCIAL SERVICES Lending markets: Ontario www.robinsonsgroup. com/pillar

613-279-2116

Niche/focus: Residential, construction, rural, self-employed, bruised/damaged credit, cottage, agricultural Products: First mortgages Customer type: Those who do not meet the typical lending criteria of most lending institutions Property type: Single-family

residential, multiples, large homes, second homes, rural properties with well and septic, new construction Purpose: Ensure long-term financial well-being of borrower by providing solutions in an ever tightening market. Short-term solutions for long-term success Maximum LTV: 80%

Terms: One to two years Rate type: Fixed Maximum amortization: 30 years Fees: 2.5% with 80 bps to broker on every deal Preferred loan amount: $200,000 and up

Minimum Beacon: None

TRIBECCA FINANCE CORPORATION Lending markets: Ontario www.tribecca.ca

416-225-6900

Niche/focus: Residential and construction financing Products: First and second mortgages, construction mortgages, unsecured personal loans Customer type: All

Property type: Single-family, townhouses, condos, multi-unit, building lots

Terms: One month to two years

Purpose: Purchase, refinance, equity take-out, bridge financing, construction

Maximum amortization: 40 years; interest-only available

Rate type: Fixed

Fees: 2% to 4% Maximum LTV: 85% Minimum Beacon: None

Preferred loan amount: $10,000 to $1.5 million

VWR CAPITAL CORP.

www.vwrcapital.com

866-907-5407

Lending markets: British Columbia, Alberta, Saskatchewan, Manitoba and Ontario

Property type: Single-family, townhouses, condos, row homes, serviced land, raw land, multi-family

Niche/focus: Residential

Purpose: Finance borrowers who may not qualify at traditional institutions

Products: First, second and third mortgages

Maximum LTV: 75% Customer type: Individuals, holding companies, operating companies, non-residents and more

Minimum Beacon: None

Rate type: Fixed Max amortization: Up to 35-year amortization; interest-only available Fees: Starting from $750 for first mortgages and $500 for second and third mortgages Preferred loan amount: $25,000 up to $2.2 million

Terms: One-year term; open mortgages available

16 www.mortgagebrokernews.ca

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BPAM

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PRODUCT SHEET

ONTARIO AND BRITISH COLUMBIA

SINGLE FAMILY MORTGAGES 2 ND MORTGAGE PROGRAM

1 ST MORTGAGE PROGRAM UP TO 65% LTV

UP TO 70% LTV

UP TO 75% LTV

UP TO 80% LTV

UP TO 65% LTV

UP TO 70% LTV

UP TO 75% LTV

7.50%

7.75%

7.99%

7.99%

9.50%

9.75%

9.99%

1%

1%

1%

1.5%

1%

LENDER FEE

1%

1%

OPEN AFTER 6 MONTHS INTEREST ONLY PAYMENTS EQUITY STATED INCOME BROKER FEE CAN BE ADDED

These are Guidelines Only – Rate and fees can be adjusted • Based on 1 year term • Stated income deals must pass a reasonability test • Owner occupied, Rentals and Investor • Bridge financing available – Call for details

COMMERCIAL - BC & ON

CONSTRUCTION - ONTARIO

Max 75% ltv

Up to 75% of total cost including land

1st mortgages + 2nd mortgages

Open terms – $500,000 minimum

Lender fee 1% to 1.5%

Lender fee 1% to 1.5%

One and two year terms available

Interest reserve can be held during course of construction

Industrial, Retail, Land & Land Assembly

Single family / spec / rentals / mixed use / multi-family

$500,000 to $20,000,000

No standby fees for funds not drawn

Mixed use

Owner builds considered

CANADA’S PREMIER NON-BANK LENDER

TM

Direct Office Email Web

(416) 561-9224 (416) 607-4209 phil.fiuza@atriummic.com www.atriummic.com

PHIL FIUZA Managing Director

ATRIUM MORTGAGE INVESTMENT CORPORATION IS MANAGED BY CANADIAN MORTGAGE CAPITAL CORPORATION – LIC. 10284

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