CMP 7.5 Lender Guide

LENDER PRODUCT GUIDE page 24 SPECIAL EDITION

LENDER

E D I U G

CO-BRANDING White labels add value for brokers

COMMERCIAL Co-broker the deal with a specialist

BUSINESS-FOR-SELF Lending landscape shifts for BFS clients

Rentals Offering investors expert advice

Romspen Investment Corporation is a non-bank mortgage lender specializing in commercial real estate across Canada. With $1 billion under administration, we offer customized mortgage solutions for term, bridge and construction financing from $2M to $75M.

Blake Cassidy 800 494 0389 | romspen.com

$35,000,000 $35,000,000

Condominium Condominium Construction DevelopmentFacility Site TORONTO, VICTORIA, BCON $10,000,000 $11,000,000

Multi-tenanted Condominium Industrial Development Portfolio Site TORONTO, TORONTO, ON ON $4,800,000 $7,500,000

Commercial 19 Serviced Offi Industrial ce Building Lots DENVER, EDMONTON, CO AB

LOOKING FOR A BANK THAT SHARES YOUR CREATIVE VISION. GOOD LUCK WITH THAT. License # 10172

Our common sense approach opens the doors to home ownership even wider.

As Canada’s leading alternative mortgage lender, Home Trust Company has been opening our doors to brokers for over 25 years. Our dedicated underwriting team always uses a common sense approach, allowing you to close more deals.

It’s as simple as that. Yet another way Home Trust helps you open more doors when opportunity knocks.

MORTGAGES

|

CREDIT

|

VISA

|

DEPOSITS

|

www.hometrust.ca

contents / lender guide

26

Lender Product Guide A round-up of products available from broker channel lenders

8!

4 | Vintage products White label products, co-branding partnerships between brokerages and lenders, continue to grow in popularity. CMP explores what they are why these products are key value-adds for brokerages to use as exclusive tools by their brokers

8 | The big shift Recent concerns about mortgage insurance funding by CMHC has caused lenders to either pull back or exit completely from the business-for-self mortgage market. While there is cause for concern, brokers and lenders say homes can still be found for these mortgages

may 2012 lender guide | 1  

contents / lender guide

14

13 | Business-for-self Canadians present big opportunities Brokers often turn away from this type of business because they aren’t sure how to evaluate or even put together a solution for this type of customer.

But all it really takes, says Home Trust’s Pino Decina, is a more flexible type of approach 14 | Stepping up to commercial If you’re a residential agent who wants to handle your commercial referrals, it’s essential to seek out a commercial specialist willing to co-broker the deal says industry veteran Dale Bilton

20 | Rental re-think Brokers have built whole businesses around this niche area, helping real estate investors bolster their portfolios. But with a lender pullback adding to government rule changes introduced over the last couple years, they’re re-evaluating that strategy. Still, for investors, the need for broker expertise has never been greater, and that presents a whole new set of opportunities for mortgage professionals educated on today’s rental programs 26 | Lender Product Guide CMP invited broker channel lenders to provide a basic outline of their lending products and we’ve collected the results and present them here as a handy reference guide for brokers

20

2 | lender guide may 2012

contents / Editor’s letter

COPY & FEATURES Editor John Tenpenny Associate Online Editor Vernon Clement Jones SUB-EDITOR Rachel Naud staff writer Caitlin Nobes contributors Doren Aldana

Peter Kinch

Nick Kyprianou

ART & PRODUCTION Design Production Manager gRAPHIC dESIGNER

Angie Gillies Alicia Chin

SALES & MARKETING

NATIONAL SALES MANAGER Trevor Biggs SALES MANAGER, Mortgagebrokernews Scott Clarke Marketing and Communications Julia Comitale PROJECT COORDINATOR Jessica Duce

CORPORATE PRESIDENT & CEO Tim Duce OFFICE/TRAFFIC MANAGER Marni Parker Events and Conference Manager Chris Davis

Editorial enquiries john.tenpenny@kmimedia.ca Advertising enquiries trevor.biggs@kmimedia.ca Subscriptions tel: 416 644 8740 • fax: 413 203 8940 subscriptions@kmimedia.ca KMI Publishing 312 Adelaide Street West, Suite 800 Toronto, Ontario M5V 1R2 mortgagebrokernews.ca Copyright is reserved throughout. No part of this publication can be reproduced in whole or part without the express permission of the editor. Contributions are invited, but copies of work should be kept, as CMP magazine can accept no responsibility for loss.

LENDER PRODUCT GUIDE PAGE 24 SPECIAL EDITION

LENDER

GUIDE

CO-BRANDING WHITE LABELS ADD VALUE FOR BROKERS

COMMERCIAL CO-BROKER THE DEAL WITH A SPECIALIST

BUSINESS-FOR-SELF LENDING LANDSCAPE SHIFTS FOR BFS CLIENTS

RENTALS OFFERING INVESTORS EXPERT ADVICE

Times, they are a’changing The lending landscape for brokers has changed in recent months and bigger changes may be on the way soon.

The B-20 guidelines issued by the Office of the Superintendent of Financial Institutions, which were put out for comment until May 1, are designed to ensure that banks are collecting detailed information about a borrower’s identity, background, and willingness and ability to pay their debts on time. The rules also deal with due diligence the banks should conduct on the value of properties.

There are several areas that are of particular concern for brokers.

OFSI is proposing that loan documentation and underwriting occur “as applicable for each subsequent renewal or refinancing of the mortgage.”

This suggests that borrowers on renewal would have to be requalified. This is not the current practice in Canada and would represent a significant change.

The guidelines also propose “the borrower’s likely income and repayment capacity in retirement” be taken into account when qualifying.

This would be additional assessment criteria that underwriters and lenders would have to consider in addition to income, including past income, credit score and other important factors such as location of the property and its value.

The elimination of “cash back” down payments is also addressed where “incentive and rebate payments should not be considered as part of the down payment.”

HELOCs are also on the table, with OSFI proposing that HELOCs be structured more like mortgages and be amortized. While some HELOCs usage might be deemed unwise, many Canadians use the financing to invest in capital markets or even for their own business purposes. Determining how people intend HELOCs could be difficult and hopefully some flexibility will be allowed beyond the proposed 65 per cent threshold.

So, as always, I encourage you to contact us with any news related to the broker and mortgage industry or just to share your opinions on how we’re doing. It is exciting times for our industry and we look forward to helping you and your business navigate them.

Cheers.

John Tenpenny, Editor connect

Contact the editor: john.tenpenny@kmimedia.ca

may 2012 lender guide | 3

FEATURE / white labels

products White-label products, co-branding partnerships between brokerages and lenders, continue to grow in popularity. CMP explores what they are why these products are key value-adds for brokerages to use as exclusive tools by their brokers In the mortgage industry, white label is the name given to a product that a lender creates but allows brokerages to rebrand with their own names. In the client’s eyes, this co-branding closely associates the brokerage and the loan, creating an almost bank-like experience.

In Canada, one of the earliest white labels in the industry came from Mortgage Alliance, whose Right Mortgage product was serviced by Macquarie Financial (following Macquarie’s exit, the product has been serviced by Paradigm Quest).

“We started Right Mortgage for a number of reasons,” says Tony Bartolomeo, product manager.

“We wanted something to allow Mortgage Alliance agents differentiation in the marketplace, plus we wanted something designed around educating the client about the features of the mortgage.”

Right Mortgage allowed agents and their clients to focus on certain features of the mortgage that were most important to them — anything from pre-approval to LTV — and input those numbers into a calculator, rather than just focusing on the best rate. “If it starts the conversation about different aspects of a mortgage that clients didn’t think about at first, it creates a value-add,” says Bartolomeo. “For the agent, it was something unique they couldn’t get anywhere else — added

4 | lender guide may 2012

value instead of just a different name,” he says.

Even though Mortgage Alliance’s Right Mortgage isn’t technically a white label (for one, it doesn’t share a name with the brokerage, but more on that later), they were an early adopter in working on exclusive relationships with a lender in order to provide their brokers something unique. It’s a trend that has grown since, with many brokerages now offering either a white label or at least having some sort of exclusive relationship deal.

“I think the trend is we’re all trying to figure out how we can create lasting relationships with our customers,” says Ron Swift, CEO of Radius/ Mortgage Architects. “As we continue to evolve this industry, those are strategies the superbrokers are looking at. It’s just whether can they do it efficiently, effectively and, because it’s a large expense and a large risk, whether your agents will support a branded company product.”

But Swift also recognizes the merit in such a relationship, as it’s a “great way to create branding,” he says. “Plus, it really helps create a long-term relationship with those clients where you don’t have to worry about cross-selling.”

It’s something Verico understands well — It has had an exclusive relationship with AGF since February of last year.

FEATURE / white labels

“We had a white label with Macquarie called Verico Mortgage, but we wanted to have another balance sheet lender, which gives more flexibility,” says Sean Widdess, national sales manager. “Plus, working with a trust company that has a balance sheet presents new opportunities that may not have been available with other lenders.”

Widdess says that AGF, which operated in the subprime sector in 2008, approached Verico to re-enter the mortgage industry in the A sector, and “the timing was just right,” he says.

“I guess it comes to all of us wanting to have some kind of differentiator in the marketplace. If we have something in our brand that agents can’t get elsewhere, it attracts them to our business — the more we give them, the more likely they are to stay, and the more likely we will attract the most talented brokers.”

As for having an actual white label like Verico Mortgage again, Widdess points out that there are pros and cons. “We’d have it again if it was extremely unique, and not just to put the name on it.

Right now, it’s not a huge necessity to have our brand on the loan.”

The Pros Edmonton Broker Vaughn Leroux has been “pretty committed” to using Dominion Lending Centre’s white label, Dominion Mortgage, for about two-and-ahalf years, he says, and the company points him out as one of its top producers (Leroux says he currently does 25 per cent of his business through the white label).

Dominion Mortgage works in that it notifies the agent every time there is an action, such as a request from the client to pay out the mortgage. The intent is that since 84 per cent of clients renew with the original lender, the mortgage stays with the Dominion agent for as long as possible.

Leroux appreciates that it’s all part of a larger identity. “It’s our internal product so our reputation is aligned with that,” he says. “Clients see us and if we put them in a Dominion Mortgage, it’s similar to calling a bank.”

But like many white labels, the ultimate advantage comes in having a lender that is committed to the client and the broker come renewal time.

“Dominion isn’t the highest paying lender in the market, but I’m more concerned at what happens at renewal,” says Leroux. “We’re going into a situation that

If we have something in our brand that agents can’t get elsewhere, it attracts them to our business

Powerful earning potential? Undeniably.

The power to earn is what drives business. And unlike the big banks, we drive business by serving brokers. In fact, our Power Compensation Program™ gives member brokers powerful opportunities to increase their earnings. To us, compensation is more than just a commission. It’s about empowering our brokers with the tools to succeed.

1-888-837-2326 • bwballstarportal.ca

may 2012 lenders guide | 5

FEATURE / white labels

Right Mortgage Established: Nov., 2007 Who it's serviced by: Paradigm Quest Efficiency Ratio: N/A Volume funded since start: Over $4 billion Products: A business; Purchase/Refinance; Refinance program; Purchase Plus Improvement; New to Canada; BFS Alt A; Switch/Transfer;< Rental/Investment Beacon score: 650 Brokers/agents currently using it: N/A Provinces available: Across Canada Selling Point: Allows agents to focus on all aspects of the mortgage, therefore educating clients beyond just the down payment.

Dominion Mortgage Established: April, 2008 Who it's serviced by: Paradigm Quest Efficiency Ratio: N/A Volume funded since start: More than $2 billion Products: Rental, New to Canada, Business for Self Alt A stated, Switch, No Frills, ARM, Fixed Rate, 50/50 Balanced Mortgage, HELOC Beacon score: "Typical A business" Brokers/agents currently using it: More than half of DLC's agents Provinces available: All Canada but Quebec (coming soon) Selling Point: Trailer fee, and Customer for Life value proposition

Verico/AGF Verico AGF Mortgage Program Established: Jan, 2011 Efficiency Ratio: N/A Volume funded/Growth: 2011 Q4 volume was up 85 per cent over 2011 Q3 Products: Prime high-ratio insured, prime conventional, alternative conventional. Prime products available at fixed and variable; alternative products available at fixed Beacon score: As low as 540 Brokers/agents currently using it: Approximately 85 per cent of Verico licensees Provinces available: Across Canada Selling Point: AGF is the first trust company and deposit-taking institution in Canada to offer a trailer fee compensation model to brokers

6 | lender guide may 2012

Another advantage comes with the built-in familiarity between lender and brokerage, which can help with the day-to day

we haven’t seen in 10 years. It’s going to be difficult to move a product and I want to make sure my clients are going to be with a lender that are competitive on renewal. It’s also a credibility factor. When you’re dealing with a white label mortgage provider you want to be sure they’re committed to the business.”

Another advantage comes with the built-in familiarity between lender and brokerage, which can help with the day-to day, as well as when an otherwise good client happens to not fit in the box.

“The process with other lenders can be a little more convoluted and take a little bit more time. This way, it’s usually same day, which is key for a first-time homebuyer. For them, a two-to-three-day turnaround process is nerve-wracking,” says Leroux, adding that “as [Dominion] gets very comfortable with the quality of clients I send them, which comes with trust and volume, I get a bit of a break, maybe some benefit of the doubt when they see my other clients are quality.”

Swift agrees: “I would expect that there would be potentially greater influence with those arranging the loan to make an exception,” he says, adding that even though Mortgage Architects don’t currently have a white label, “I officially would not say no to that concept if it was adding value and keeping this industry stronger.”

The Cons Despite the advantages to white labels, there are always concerns with not only having such a close relationship between a lender and a brokerage, but one that shares a name.

That was something Mortgage Alliance had in mind when it developed Right Mortgage.

“Right Mortgage wasn’t specifically associated to a company, even though clients understood where it was coming from,” says Bartolomeo, adding that they also thought having their name attached to it would limit their ability to offer more than one product.

“If you only created one and it was your name, you would only be committed to one.

How would the second one be different?” he says.

“With Mortgage Alliance, the vision is to create additional product names all under one banner. It’s just a matter of having the ability. Right Mortgage is a Right Mortgage product.”

Another advantage to Right Mortgage being a Right Mortgage product, rather than a traditional white label, says Bartolomeo, was proven when Macquarie left the market.

“We had notice when Macquarie left and we were able to partner up quickly so that the service level didn’t drop and the mortgage didn’t change for the customer,” he says. “If you lose a lending partner, you can replace the lender.”

FEATURE / white labels

Which brings up another concern — what happens when the lender your brokerage is so closely associated with either does something wrong, or in the worst-case scenario, exits the market?

“You sometimes could wear any issues that a lender may have,” says Widdess. “If you put your name on something, good or bad, the clients are going to want to come back and talk to you about it.

If it’s not positive, the first thing they do is call you.”

On top of that, as a brokerage, says Widdess, “you have a responsibility to ensure your brokers feel that it’s working. You’ve licensed your name to a lender, but you’re not that lending company. There’s risk and opportunity, but when the mistake is out of your control there is an inherent risk there.”

“Because you’re relying on third parties,” adds Swift, “you have to make sure they’re doing a good job. If they do a poor job it reflects back on you. It’s a mortgage like any other mortgage, so is it a good product and are service levels high?”

And, of course, there’s the conflict of interest issue for brokers when it comes to selling a product so closely associated with your own brand.

“As brokers we always pride ourselves on

offering unbiased choice to consumers,” says Swift.

“When you start offering your own products, you have to make sure you’re disclosing it properly, that the client understands the relationship and that they know how it’s working.”

Nothing less than your reputation is on the line, he adds.

“The product needs to be competitive and truly adding value to consumers, hopefully not something that is taking away from the consumer but adding to the agent.”

With even more brokerages adding white labels or establishing other types of exclusive relationships with lenders, it’s clear that the trend is moving toward lenders cozying up with brokerages that treat them right, whether or not that brokerage’s name is actually on the product being sold.

“We’re definitely seeing more preferred relationships” says Widdess. “White label or not, I wouldn’t be surprised if every national brokerage had a private relationship with a lender. And if that benefits the customer and benefits the broker, then I don’t see that as a bad thing.”

Everyone talks about service.

Equitable delivers.

It’s a team approach to lending.

Open conversation.

Partnership success.

Unique, in an otherwise compartmentalized world, means Equitable can see & hear what others often miss... ...Client Circumstance.

We specialize in business-for-self, newcomers and credit challenged clients who want to be heard. Let’s talk today.

ONTARIO/QUÉBEC T: 1.866.407.0004 F: 1.866.407.5859

WESTERN CANADA T: 1.866.940.1201 F: 1.888.440.1201

www.equitabletrust.com CMPAd_HalfPg_SE_CLG_2012.indd 1

12-04-24 11:02 AM

may 2012 lender guide | 7

FEATURE / BFS Lending

big shift The

In recent months some lenders in the broker channel have made a hasty retreat from the NIQ space, limiting funding options for brokers and their BFS and stated-income clients.

Their departure, kicked off by FirstLine’s decision to axe BFS lending, came after CMHC signalled it would ration access to bulk insurance for their conventional loans as the Crown corporation neared its $600-billion funding cap.

Monolines are most likely to be affected because they rely on that insurance to facilitate the securitization and sale of those mortgages – a way of taking them off their books and freeing up cash for more lending.

TD, the country’s second-largest lender, stopped originating non-prime residential mortgages as of March 31. The loans, offered through TD Financing Services Home Inc., represented about 0.2 per cent of the bank’s mortgage portfolio, according to spokesman Mohammed Nakhooda.

Although the bank said it would continue to accept business-for-self business, it now requires brokers have to input all stated gross income, complete asset and liability details for equity clients regardless of loan-to-value thresholds. It has also capped loan-to-value at 75 per cent.

Calls for federally regulated lenders to better vet

8 | lender guide may 2012

Recent concerns about mortgage insurance funding by CMHC has caused lenders to either pull back or exit completely from the business-for-self mortgage market.

While there is cause for concern, brokers and lenders say homes can still be found for these mortgages

their underwriting, specifically BFS, have also had a chilling effect across much of the broker channel.

But it shouldn’t lead to a spike in borrowing costs, says Lester Shore, VP of Optimum. “It’s not an oligopoly here,” he says, referring to the broker channel’s handful of Alt A institutions. “Yes, we are seeing A lenders retrench and move out of the Alt A space, but their departure won’t drive up rates, because we have enough alternative lenders in the space to ensure competition.”

Still, all of those factors are poised to grow business for Optimum and other alternative lenders as an increasing number of Canadians seek that type of mortgage funding and A lenders are unable or unwilling to service them.

“It does represent a good opportunity for us in that the big guys have stepped back,” said Shore.

Home Trust is backing up that assessment and views the channel’s retreat from business-for-self lending as a potential boon for its own book.

“We have also made tweaks in our underwriting,” said CEO Gerald Soloway. But “we see incrementally more business coming to us as those (BFS deals) are shut down by the various lenders.

We feel that is a very positive trend for Home.

“We see opportunities with people that are really high-calibre borrowers with good proof of income,

Think reverse mortgages are expensive?

Think again!

With CHIP Home Income Plan’s new low rates, homeowners 55+ can now access up to 50% of their home equity at rates comparable to other home equity lending products.

But unlike these other products, with the CHIP solution: • no payments are required, until homeowners choose to move or sell • no income, credit or medical qualifications are needed • funds can be received as a lump sum or over time, giving your clients the flexibility they need

Why not tap into the potential of the growing seniors market and recommend CHIP? You’ll receive a referral fee, and we’ll look after all the paperwork for you.

To find out more, or to partner with CHIP, contact us:

1-866-536-2447 www.chipadvisor.ca

In addition, clients maintain ownership and control of their home.

CHIP Home Income Plan is provided by HomEquity Bank, a Schedule I Canadian Bank. HomEquity Bank is a wholly-owned subsidiary of HOMEQ Corporation, a TSX-listed company. TM Trademark of HomEquity Bank.

FEATURE / BFS Lending

This month’s guests Kim Luxton

but their circumstances are a little different. We haven’t had to go down the credit scale; we’ve been able to go up the credit scale, which is an unusual phenomenon.”

Home Trust said it’s capturing mortgage business from Canadian lenders that are retreating from the non-prime market amid signs of a housing downturn.

“The big banks are sort of juggling around their mortgage strategy and as part of that, they’re tightening up in certain areas,” said Home Trust President Martin Reid. “We’re seeing some of the fallout.”

“It may be slow and gradual, but I think we’re seeing a return to the 1980s when there was a greater distinction between A and B lending,” says James Robinson, an agent with The Mortgage Centre Mortgage Watch Inc. in Toronto. “Home Trust is likely to be the winner in all this.”

With so much information surrounding the Canadian debt-to-income ratios on top of interest rates bottoming out, there is increased pressure on financial institutions to be proactive about putting measures in place now to prepare for a rise in rates, says Kim Luxton, director, broker sales with ING DIRECT. “Equity-type products can have potential to increase risk for both consumers as well as lending institutions,” she says. “Equity is valuable for net worth but we all know that equity doesn’t pay the bills and should not be the only qualifier for a mortgage. Canadians that are business-for-self will still have the ability to borrow through the insurers “Alt A” programs that are available after reasonability of income has been established.”

While Luxton says there is no doubt that there are less specialty products today for brokers to offer, they are still out there. The challenge brokers, coming out of an environment of low rates, she says, will be to prepare applicants who are looking for an equity-based product for higher rates.

“Knowledge is power and educating clients on affordability, in particular if interest rates rise by as much as three per cent, can further heighten the

10 | lender guide may 2012

Lester Shore

Martin Reid

value of dealing with an experienced mortgage broker in the clients’ eyes,” she says. If ING’s volume with its stated-income products are any indication, there is still plenty of business for brokers.

Monoline lender Merix Financial recently made some changes to its business-for-self lending, while at the same time assuring brokers it will continue to offer the product.

“It was important to Merix to continue to offer those products – BFS and Rental – so originators can continue to offer them to their clients,” said Jason Kay, the lender’s VP of corporate development and sales. “We don’t want to be known just for BFS and rental product, but want all of an originator’s business.”

For LTVs greater than 65 per cent but less than 80 per cent, customers will now pay the insurance premium, according to Merix. The BFS interest rate premium will be reduced to 5 bps from 20 bps. BFS clients with LTVs less than 65 per cent won’t need to insure, although will also benefit from that slash to the interest premium. For its clients that will have to buy insurance, Merix is also allowing them to tab the default insurance premium onto the mortgage amount.

“While some clients will have to pay more, from a cash flow perspective, it is relatively neutral compared to costs before the changes,” says Kay. Some brokers say they are turning to second mortgages to service BFS clients left stranded by retreating A players.

“I think fears about the end of that business have been exaggerated,” says Rick Caron, an agent with Verico The Mortgage Professionals in Gananoque, Ont. “Self-employed are always going to find money, but what’s happening is that brokers are having to get more creative with those deals.”

Increasingly, that means arranging a prime-rate mortgage with an A lender willing to go as high as 65 per cent LTV for a stated-income client. Caron and others are then arranging a second mortgage for as much as 15 per cent of the value of the mortgage

FEATURE / BFS Lending

with alternative lender offering B rates, or, if push comes to shove, a private lender demanding slightly higher rates.

Those second loans are for terms of one or two years, according to Caron, but are essential for brokers looking to fill the funding gap left by the industry’s move away from BFS lending.

However, his more creative solution may not be for every self-employed. The interest rates attached to those second mortgages means clients need to have strong exit strategies that will allow them to retire that debt. “They’re a short-term thing,” said Caron.

Credit unions are also hoping the retreat of some lenders from the BFS arena will be their gain, as Ontario’s largest player actively reaching out to brokers seeking a new home for BFS clients.

“This really is an opportunity for brokers to take a look at other lenders,” says Robert Leaker, VP of emerging markets for Meridian Credit Union. “And quite frankly we are that other lender, with the products, the services and the common-sense lending guidelines to accommodate that business.”

If Leaker gets his way some of that growth will

stats

$600 billion -

CMHC mortgage insurance cap, up $250 billion since 2007

come directly from self-employed borrower deals brokers would otherwise have taken to lenders who have now left the space or scaled back their offerings.

Meridian’s self-employed terms are increasingly hard to come by: no automatic interest rate premium for clients with beacon scores above 600 and there’s no mortgage insurance requirement.

“We don’t do high ratio,” Chris Fontana, manager of Meridian’s broker Unit, “and we may or may not bulk insure a loan ourselves, but the member doesn’t pay it.”

Still, some brokers worry the loss of high-ratio mortgages for self-employeds might limit both the professional and personal ambitions of mortgage professionals.

“We had already seen Scotia move to limit those mortgages to five-year terms, and recently one of the few monolines offering those mortgages told me that they were no longer considering them for the rest of the year and next year only on a case-by-case basis,” says Michael Marini, a mortgage agent with Dominion Lending Centres Funds in Toronto. “Even then, the application would have to be with them for

A new spirit in mortgage lending Dedicated to mortgage brokers at equity financial mortgage services we deliver a new level of responsiveness and common sense lending to the ontario mortgage broker community.

EquityFinancialTrust.com/Mortgage

Toll Free: 1.866.393.4891

TrusT. Leadership. performance. © 2012 equity financial Trust company

may 2012 lender guide | 11

FEATURE / BFS Lending

fewer and fewer lenders appear willing or able to offer prime rates to BFS

a minimum of five days.”

Marini and others are pointing the finger at default insurers suggesting their appetite for high-ratio BFS deals has effectively disappeared, something possibly owing to concerns around exposure to fraud and a possible market correction and economic downturn.

That explains the higher down payment requirements and insurance costs, but even with those buffers, fewer and fewer lenders appear willing or able to offer prime rates to BFS – including mortgage brokers themselves.

Marini is among those concerned that lenders are simply finding it hard to get those loans insured.

The reluctance has everything to do with more conservative underwriting by the sole default insurer now serving that niche market, argue some brokers.

The loss of that type of loan would effectively leave BFS clients with little choice but to go conventional. It’s something few have wanted to do in order to capitalize on low interest rates and invest their money into growing their businesses.

Marini’s concerns mirror those of other brokers from across the country who are now seeing the pendulum swing back from the dark days of 2007/8 when broker channel lenders had all but closed their doors to non-income qualifying mortgages.

But while banks and monolines are increasingly willing to fund those deals at prime rates, they are still demanding default insurer backing.

That’s where brokers are hitting a snag, said broker Vittorio Oliverio with Centum Professional Mortgage Group. He works the entrepreneurialrich Alberta market where the business-for-self market is viewed as a key growth area for brokers looking to grow originations in a slowing market.

The statistics back them up with more than 22 per cent of Canadians now self-employed, among them mortgage brokers.

“The change means that many of us will be challenged to get a mortgage as well,” said Marini, fearful 2012 will see it become nearly impossible for self-employeds to win high-ratio mortgages at the rates of their salaried counterparts.

Being asked to work magic?

Seeing more customers with challenging income and credit situations?

Having difficulty with “out-of-the-box” applications? n Frustrated with restrictive lending criteria? n Ready to expand your client base beyond the traditional borrower? n n

We are the home of Sensible Lending® and have mortgage options suitable for most borrowers. (TSX:CWB)

Serving brokers in Alberta, British Columbia, Manitoba, Ontario, and Saskatchewan.

866.441.3775 www.OptimumMortgage.ca

12 | lender guide may 2012

Questions? Comments? Deals?

Contact your regional business development manager or our underwriting centre at 866.441.3775

profile / home trust

Business-for-self Canadians present

big opportunities

Pino Decina

Think Business-for-Self (BFS) Canadians aren’t worth your time (particularly those who are ‘stated income’ BFS)? Think again.

Fact is, the potential customers in this steadily increasing sector have a proven track record of solid performance and are no different than a salaried customer. They just happen to be in business for themselves.

Being in business-for-self is a decision that more and more Canadians are making every year. The numbers say it all: this market has shown a steady two per cent in growth/year since 1983 and is showing no signs of slowing down. In 2011, there were 2,670,000 self-employed Canadians, representing 14 per cent of the labour force. This growing group is wildly underserved by the major banks when it comes to meeting their financial needs with lending products. And that can add up to a lot of business opportunity for those brokers willing to think a little outside of the box while providing lending solutions.

This is where a trusted lending partner like Home Trust can help.

“As a niche lender, Home Trust has been providing alternative lending solutions for these customers for 25 years,” explains Pino Decina, SVP, Mortgage Lending at Home Trust. “Brokers often turn away from this type of business because they aren’t sure how to evaluate or

Brokers often turn away from this type of business because they aren’t sure how to evaluate or even put together a solution for this type of customer. But all it really takes is a more flexible type of approach even put together a solution for this type of customer. But all it really takes is a more flexible type of approach.”

Start by getting to know your customer.

Do your due diligence by getting to know your customer’s business. Take a proactive interest in their business, the market, their short- and long-term goals. Understanding this will help you know what to ask and how to assess the risk associated with taking this customer on.

Know that lending criteria will vary.

Every deal in the BFS space can be different, and the requirements to satisfy a lender’s criteria may vary. But the payoffs for this bit of extra effort are huge: you are providing a solution for your customer and in the process, building a relationship. And that relationship can lead to future business on other investment or lending products down the road.

Recognize that potential risk can be mitigated.

When adjudicated under a proprietary lending model, the possibility of risk is mitigated. An overwhelming majority of BFS customers will actually be found to perform at the same level as a salaried client.

See your BFS customer as a way to tap into the BFS network.

People socialize and do business with like-minded individuals. So there’s a very good chance that your BFS customer is connected to a network of other BFS individuals. People are likely to recommend those who provide them with great products and services. And that can translate into a lot of potential new business leads, with minimum effort on your part.

Still not sure whether you want to take on a BFS customer?

Consider these 3 possible outcomes when faced with the potential: 1. Turning away from the opportunity= $0 revenue for you 2. Co-broker with someone who has experience = $ You enjoy shared revenue 3. Take it on yourself by engaging the services of a lender like Home Trust= $$ You capture all the revenue In closing, think about this: approximately 15,000 active brokers across Canada could provide an alternative financing solution for BFS customers. If you don’t take an active interest in providing one, somebody else will.

may 2012 lender guide | 13

FEATURE / commercial Lending

14 | lender guide may 2012

If you’re a residential agent who wants to handle your commercial referrals, it’s essential to seek out a commercial specialist willing to co-broker the deal says industry veteran Dale Bilton

may 2012 lender guide | 15

FEATURE / commercial Lending

Learning the commercial steps

There are many critical steps residential agents can follow in order to become more successful in, and proficient at, getting involved with commercial brokering.

The most important step is to ensure Dale Bilton residential agents don’t try to pass themselves off as commercial specialists if they lack the required commercial lending background, experience and knowledge to put the deal together. A commercial Realtor or commercial buyer will quickly see through this lack of knowledge and the residential agent’s credibility will immediately be lost and the Realtor or client will move on. After all, you only have one shot at making the right first impression.

When a residential agent receives an inquiry to arrange financing for a commercial purchase of a business owner occupied property or an investment property such as an apartment building, plaza or industrial building, for instance, the basic requirements to start the deal are similar to the residential realm, but the lenders in most cases will be completely different.

The majority of brokerage firms want their residential agents to work 100 per cent on the type of brokering they’ve been trained in – residential – and recommend co-brokering the deal with a commercial agent they know and trust. That said, it’s still important to know the multiple steps involved in putting together a commercial deal.

The majority of brokerage firms want their residential agents to work 100 per cent on the type stats of brokering they’ve been 9.2% trained in – residential – 8.3% and recommend 7.6% - overall co-brokering the deal canadian office vacancy rate 2009, 2010 with a commercial agent in2011. they know and trust Source: Avison Young

16 | lender guide may 2012

It’s important to carefully listen to the commercial request and ask if there is an MLS listing or an old appraisal available for the property. This listing will often offer a good description of the property and its buildings.

Hopefully there is also an income/expense recap of the operation and a current rent roll. Find out what the buyer is prepared to pay and ask how much they actually have or can raise in cash to invest into it, just to get a general overview of what they can afford to inject.

At this point, it’s important to never estimate how much you think you can arrange or what the interest rate will be, as this approach is sure to backfire on you.

Instead, start your work with a commercial financing partner who specializes in commercial mortgages and (who will give you a percentage of the fees earned). You want to get him or her involved at the onset of the deal. Jointly you can call the buyer so you can introduce the commercial specialist and explain he/she is your commercial financing resource and will be handling the deal moving forward.

At this stage, once the initial information has been reviewed (the real estate listing and any other info that has been provided), the commercial specialist will determine the buyer’s knowledge of the commercial industry in which they’re looking to invest to ensure there’s a good fit.

If an offer has not yet been completed, this needs to be coordinated to ensure an acceptable purchase can be worked out. The offer needs to allow adequate time for due diligence to be carried out. In most cases, at least a full month is required. But if the deal is for an apartment building and the mortgage is going to be CMHC insured, a minimum of 35-40 days is required to meet conditions.

One of the next priorities involves finding out if the property has any environmental issues. Has there ever been a gas station in the immediate area or any business that may have created concerns?

The commercial expert will explain to the client that a Phase One environmental report will be needed in most cases for any commercial lenders, and this is also a good requirement for any investor to be sure the property is clean of contamination. If there are any concerns raised with the Phase One, a Phase Two report will be required. This involves holes being drilled to confirm if the property has issues. A Phase 2 will take an additional month to complete and is also fairly expensive.

It’s important to note that you don’t want the buyer to order an environmental report until a

FEATURE / commercial Lending

lender has been secured, as it’s important to ensure the environmental firm is approved by the actual lender. So, at this stage, the commercial specialist will request and review the buyer’s financial statements, while also presenting the deal to a number of suitable commercial lenders that lend on this type of property, to see who has the most suitable offer for the buyer.

As it takes a while to establish a solid list of and working relationship with commercial lenders, this is where it becomes extremely difficult for a residential expert to complete the deal alone.

An experienced commercial broker will have an extensive list of, and relationship with, suitable commercial lenders and will know precisely what type of deals fit with each lender.

Once a commitment is obtained, the environmental report and the AACI appraisal can commence, as the lender will offer a list of approved consultants..

Once all conditions are met and the offer is firmed up, the commercial specialist’s job is still not complete. The specialist then needs to ensure the lawyer has received all required information from

the lender. The lawyer will typically need two weeks to complete the file. A brokerage agreement must be in place so the lawyer will pay your commission from the closing proceeds.

Because of the above extensive list of steps, it’s not uncommon for a commercial deal to take six to 12 months to complete, and sometimes longer.

The commercial brokering world has a lot of room for growth, but only the experienced seem to survive. So, if you’re a residential agent who wants to control who handles your commercial referrals, it’s essential to seek out a commercial specialist willing to co-broker the deal with someone trustworthy that has a stellar reputation in the commercial brokering industry.

Dale Bilton is a veteran commercial mortgage agent, president of Dominion Lending Centres Commercial and Residential Mortgages Ltd., and handles all Eastern commercial referrals on behalf of the Dominion Lending Centres Inc. Commercial Division. He has successfully funded more than half a billion dollars in commercial mortgages throughout his well-established career.

may 2012 lender guide | 17

BROKER FOC U SE D. BROKER L OYA L .

In todayâ&#x20AC;&#x2122;s market, you need a partner not a competitor.

Street Capital’s broader lending programs will give you the advantage.

Canadians need choices when it comes to home ownership and Street Capital knows that every deal is unique. That’s why we offer brokers a full range of flexible mortgage products to close more deals.

“I need a lending partner that can offer mortgage solutions to all my clients, no matter what their situation.”

The new Street Options Program is an alternative lending program assisting borrowers who don’t meet traditional prime business lending guidelines.

– Tom Rindler, Broker

• Self-employed • New to Canada • Applicants with imperfect credit history or bankruptcy More than ever, Canadians are shopping for the ideal mortgage. Our job is to help you grow your market share. To provide brokers with a significant competitive advantage, we offer: • Competitive rates • More compensation choices with Street and Street Loyalty Programs • Superior customer service • A broad range of prime and near-prime mortgage products • Status programs with unique advantages

“I often work with clients who are self-employed. Now I have a mortgage solution that will suit them.”

– Sandra Taylor, Broker

To learn more about how Street Capital programs can work for you, contact your local RVP today.

Tel: 647.259.7873 • Toll Free: 1.877.416.7873 • www.streetcapital.ca ™ Trademark

of Street Capital Financial Corporation. FSCO Licence No. 11428

FEATURE / Rental Programs

Rental r

20 | lender guide may 2012

FEATURE / Rental Programs

e-th nk For real estate investors, the need for broker expertise has never been greater, and that presents a whole new set of opportunities for mortgage professionals educated on today’s rental programs

As the axe fell on stated-income programs this year, it also sliced through another bread-and-butter segment for brokers.

“Investor clients, or those relying on rental programs, used to be 20 per cent to 25 per cent of my book,” Vancouver broker Jeff Trounsell, with Centum Pacific Mortgages, tells CMP. “It now represents about 15 per cent of it.”

That’s a relatively modest chop compared to those suffered by some of the channel’s biggest monolines. Those would have, in most cases, been self-inflicted – an effort by lenders to tighten up guidelines before federal regulators did it for them.

In February, CMHC warned that their access to its $600-billion insurance fund would be rationed as the Crown corp. approaches the limits of that funding. Government hasn’t yet agreed to raise the ceiling.

The decision was world-changing for monolines

who used that fund to bulk insure their conventional loans in order to pass them on as mortgage securities to investors. That avenue to getting those loans off their books and freeing up space to write new ones had virtually disappeared.

Adding to the decision by some lenders to cut the rental and BFS lending they’d now have difficulty insuring they were warnings coming from the federal regulator of Canada’s banking industry.

That same month, documents from The Office of the Superintendent of Financial Services revealed its concerns about liberal lending practices at lenders across the sector. Proposed guideline changes, now before brokers for comment, threaten to tighten up those standards, giving some lenders another reason to shy away from the rental programs that property investors rely on.

But the death of rental programs at some monolines wasn’t quite the straw that broke the

may 2012 lender guide | 21

FEATURE / Rental Programs

The 80 per cent rental offset is favoured by brokers because it allowed their client easier qualifying and greater purchasing power 22 | lenders guide may 2012

Jeff Trounsell

Dave Butler

channel’s back, says one broker working with investor clients. The premium many of those mortgage lenders attach to rental properties has been a much bigger factor in deciding which of the remaining lenders get those deals.

“In general, if you have a client that can be approved by both a major bank and a monoline lender for an investment property, it certainly doesn’t make sense to have the client pay a premium on the rate or pay an insurance premium with the monoline lender,” Dave Butler of Verico Butler Mortgages, tells CMP. “I use monoline lenders all the time – they are very important to our industry.

“But if I am comparing apples to apples for a client that can be approved by both types of lenders, it is a no-brainer to get your client a better overall package and that is present with a major bank such as National Bank or Scotia.”

That’s increasingly the case after several monolines signalled their intentions earlier this year to back away from the rental market. The move, made in tandem with their retreat from BFS programs, has actually benefited banks, which continue to take those deals and keep them on their books.

The monolines’ move to severely curtail their own rental product is the direct result of that CMHC decision to ration bulk insurance.

Make no mistake, suggests Butler, banks have

been the most obvious beneficiaries even as they too apply more conservative guidelines to that lending, especially around condo investments.

“Even with the latest changes to Scotia’s pricing on rental properties, adding 0.20 per cent to their fixed rate and variable rate,” says Butler. “The rate still ends up being better than those offered by monoline lenders who incorporate the insurance premium into the rate.

“For those monoline lenders that give their lowest rate on rentals but charge an insurance premium to the client instead of pricing it in the rate, the premium paid by the client ends up adding to more than the savings that was had in the lower rate compared to the major bank.”

Still, the monolines haven’t entirely left the game, even as other broker lenders become stronger players because of rental offsets.

The recent changes have had an effect, certainly,” says Trounsell, “but rental offsets have been much more important in determining where I take clients.

Credit unions, at least in Vancouver, are doing 80 per cent rental offsets where the banks and the monolines are ranging between 50 and 70.”

“The 80 per cent rental offset is favoured by brokers because it allowed their client easier qualifying and greater purchasing power,” Sebastien Ballin, an agent with Mortgage Alliance Mortgagelinx Financial Corp., says. “What we

FEATURE / Rental Programs

Sebastien Ballin

Nawar Naji

started to see post-April 2010, when CMHC introduced the changes to the rental program, was that it became more challenging to find lenders willing to use the offset, with most of them instead opting for a 50 per cent add-back onto the client’s total income.”

Here again, charge some brokers, monolines have placed themselves at a disadvantage, whether intentionally or otherwise, with offsets routinely lower than some of the more aggressive credit unions.

They are generally on par with the banks, though, said Trounsell.

But property investors may be justified in feeling deserted as other restrictions impact just what they can qualify for without heading into the private lending sphere and confronting its higher interest rates.

“While we’re looking for rental income that is 10 per cent higher than the carrying cost of that property,” Harry Singh, manager of residential sales for Equitable Trust, tells CMP, “we are trying to cap the maximum number of properties a borrower can have, including the property they’re coming to us to provide financing for, at four or below.”

The leading alternative lender isn’t alone, with most monolines and, indeed, banks applying a similar ceiling of four to five properties to their own borrower applications. Equitable also puts a 0.20

per cent premium on its rental rates.

Still, the terms for condominium investors are even steeper, if, in fact, lenders are still willing to go there.

That’s an increasingly a big if.

With both the federal government and the Central Bank predicting the condo market would be the epicentre of any housing correction to come, lenders have started to limit their exposure to those properties.

“The concern is that investors, in particular, may find that they owe more on the property that its worth if a correction happens,” says Nawar Naji, with Verico The Mortgage Wellness Group. “That means that where they may be willing to fund owner-occupieds, they may not be willing to do it for investors.”

The thinking reflects concerns Canada could see investors follow the lead of American homeowners, many of who swam away from their homes as they went “underwater.”

The market down south is still recovering from that highly publicized chop to its economy. Canada, and its lenders, is keen to escape the same axe.

may 2012 lender guide | 23

FEATURE / lender product guide

LENDER

PRODUCT

PURPOSE OF FUNDS

MORTGAGE AMOUNT

AMORTIZATION

TERMS

PAYMENT FREQUENCY

Insured fixed rate

Purchase, plus improvements; refinance plus improvements; rentals; new constrution

Max. $750,000, min. $75,000; $50,000, Atlantic Canada; $10,000 second mortgage

Max. 30 years, min.

16 years

1, 2, 3, 4, 5 or 10 year, fixed, closed

Monthly, bi-weekly, semi-monthly, weekly and accelerated

No

Ri-fi express

equity take out; debt consolidation; refinances with improvements

Max. $750,000, min. $75,000; $50,000, Atlantic Canada; $10,000 second mortgage

Max. 30 years, min.

16 years

1, 2, 3, 4, 5 or 10 year, fixed, closed

See above

No

Reno-for-more

purchase plus improvements; refinance plus improvements

Max. $750,000, min. $75,000; $50,000, Atlantic Canada; $10,000 second mortgage

Max. 30 years, min.

16 years

, 2, 3, 4, 5 or 10 year, fixed, closed

See above

No

Progress Advance

New construction: residential builder, general contractor, acting contractor, acting as own contractor; Interest rate: Prime +3% during construction

Max. $750,000, min. $75,000; $50,000, Atlantic Canada; $10,000 second mortgage

Max. 30 years, min.

16 years

Construction must be completed according to the draw schedule

See above

No

Rental Property

purchase; purchase plus improvements; refinance; new construction

Max. $750,000, min. $75,000; $50,000, Atlantic Canada; $10,000 second mortgage

Max. 30 years, min.

16 years

5 year, fixed, closed

See above

No

Second / vacation home

purchase; purchase plus improvements; refinance; new construction

Max. $750,000, min. $75,000; $50,000, Atlantic Canada; $10,000 second mortgage

Max. 30 years, min.

16 years

1, 2, 3, 4, 5 or 10 year fixed, closed

See above

No

Welcome to Canada

Purchase; purchase plus improvements; refinance

Max. $750,000, min. $75,000; $50,000, Atlantic Canada; $10,000 second mortgage

Max. 30 years, min.

16 years

1, 2, 3, 4, 5 or 10 year fixed, closed

See above

No

Second mortgage

equity take out; port with increase; debt consolidation; first mortgage must be with Bridgewater

Max. $750,000, min. $75,000; $50,000, Atlantic Canada; $10,000 second mortgage

Max. 30 years, min. 16 years; must match remaining amortization of first mortgage

1-5 year fixed, closed; must match remaining term of first mortgage

See above

No

State income (exclusive to Power Compensation Brokers)

Purchase plus improvements; refinance plus improvement; new construction; interest rate: market term rate +30bps; CMHC stated eligibility

Max. $750,000, min. $75,000; $50,000, Atlantic Canada; $10,000 second mortgage

Max. 30 years; min.

16 years

1, 2, 3, 4, 5 or 10 year fixed, closed

See above

No

Adjustabel rate mortgage (exclusive to Power Compensation Brokers)

Purchase; refinance

Max. $750,000, min. $75,000; $50,000, Atlantic Canada; $10,000 second mortgage

Max. 30 years; min.

16 years

3 year closed with option to convert to 3 or 5 year fixed

Monthly only available for the 1st of each month

No

Fixed Rate Mortgage

Purchase, Refinance & Rentals

Scaled Lending Amounts

30 years

1 to 5 year terms

Monthly, bi-weekly or semimonthly

No

ARM

Purchase, Refinance & Rentals

Scaled Lending Amounts

30 years

3 and 5 year terms only

Monthly

No

Yes You Can - High Ratio

Purchase or Refinance * Rentals-ON

Scaled Lending Amounts

30 years

*Western Canada 1 & 2 year terms, Ontario 1, 2 & 3 year terms

Monthly

No

1+1 Option

Purchase, Refinance & Rentals

Scaled Lending Amounts

30 years

1 year term

Monthly, bi-weekly or semimonthly

No

Ultimate Open

Purchase, Refinance & Rentals

Scaled Lending Amounts

30 years

1 year term

Monthly, bi-weekly or semimonthly

No

A

Purchase or refi

max $1 million

35

1 to 5 yrs

weekly/bi-weekly/monthly

No

B

pur-80% refi-75%

max $1 million

35

1 to 5 yrs

weekly/bi-weekly/monthly

No

C

purchase or refi

max $1 million

35

1 to 5 yrs

weekly/bi-weekly/monthly

No

PRE-APPROVALS

BRIDGEWATER BANK

EQUITABLE TRUST COMPANY

EQUITY FINANCIAL TRUST

24 | lender guide may 2012

FEATURE / lender product guide

LOAN TO VALUE

BEACON

GDS/TDS

PREPAYMENT

PREPAYMENT PENALTY

PORTABILITY

Owner occupied purchase 1-2 units max. 95%; owner occupied purchase 3-4 units max. 90%; owner occupied refinance 1-4 units max. 85%; nonowner occupied purchase/refinance 1-4 units max. 80%

Min. 610

680 + beacon score=No GDS, TDS 44%; 679< beacon score=GDS 35%, TDS 42%

Up to 20% of original principal or the new term principal, paid annually with min. payment of $500; regular mortgage payment increased up to 20% during term

The greater of either 3 months interest and the IRD ased on the difference between the mortgage interest rate and the yield on a Government of Canada Bond with a similar remaining term, plus 0.75%

straight port only; no blend and/or extend available; port and decrease - client to payout difference; port and increase - done as a second mortgage

Owner occupied refinace 1-4 units max. 85%; non-owner occupied refinance 1-4 units max. 80%

Min. 610

680 + beacon score=No GDS, TDS 44%; 679< beacon score=GDS 35%, TDS 42%

See above

See above

See above

Owner occupied purchase 1-2 units max. 95%; owner occupied purchase 3-4 units max. 90%; owner occupied refinance 1-4 units max. 85%; nonowner occupied purchase/refinance 1-4 units max. 80%

Min. 610

680 + beacon score=No GDS, TDS 44%; 679< beacon score=GDS 35%, TDS 42%

See above

See above

See above

Owner occupied purchase 1-2 units max. 95%; owner occupied purchase 3-4 units max. 90%; owner occupied refinance 1-4 units max. 85%; rentals max. 80%

Min. 610

15% overrun must be available in ratio, liquid assets or line of credit

n/a

See above

n/a

non-owner occupied purchase/ refinance 1-4 units max. 80%

Min. 660; Min. personal net worth of $50,000; no worse that R2 rating over past 24 months

710 beacon score=No GDS, TDS 44%; 709<beacon score=GDS 35%, TDS 42%; 50% add on=(PITH + other debt service cost)/Gross annual income

Up to 20% of original principal or the new term principal, paid annually with min. payment of $500; regular mortgage payment increased up to 20% during term

See above

straight port only; no blend and/or extend available; port and decrease - client to payout difference; port and increase - done as a second mortgage

Owner occupied purchase 1-2 units max. 95%; owner occupied refinance 1-2 units max. 85%

Min. 610

680 + beacon score=No GDS, TDS 44%; 679< beacon score=GDS 35%, TDS 42%

See above

See above

See above

Owner occupied purchase 1-2 units max. 95%; owner occupied purchase 3-4 units max. 90%; owner occupied refinance 1-4 units max. 85%

Min. 610 will accept reject beacons with alternate credit sources for co-borrower(s)

GDS 35%, TDS 42%

See above

See above

See above

Max. 95% owner occupied; max. 80% non-owner occupied; owner occupied Port 1-2 units max. 95%; owner occupied Port 3-4 units max. 90%; owner occupied ETO/Refinance max. 85%; non-owner occupied max. 80%

Min. 610

680 + beacon score=No GDS, TDS 44%; 679< beacon score=GDS 35%, TDS 42%

See above

See above

See above

Owner occupied purchase 1-2 units max. 90%; owner occupied refinance 1-2 units max. 85%

Min. 650

680 + beacon score=No GDS, TDS 44%; 679< beacon score=GDS 35%, TDS 42%

See above

See above

See above

Owner occupied purchase 1-2 units max. 95%; owner occupied purchase 3-4 units max. 90%; owner occupied refinance 1-4 units max. 85%; nonowner occupied purchase/refinance 1-4 units max. 80%

Min. 650; no worse than R2 rating over past 24 months

Bank of Canada 5 year benchmark rate used for qualifying; 680 + beacon score=No GDS, TDS 44%; 679< beacon score=GDS 35%, TDS 42%

See above

3 months interest

See above

Maximum 80%

No minimum beacon

50/50

20% per calendar year

Greater of 3 months interest or IRD, see ETC mortgage commitment for details.

Yes - With qualification

BFS - Self Declared Income permitted

Maximum 80%

Minimum 550 beacon

50/50

20% per calendar year

5 months interest in 1st year, 4 months interest in 2nd year, 3 months interest in 3rd year

Yes - With qualification

BFS - Self Declared Income permitted

Maximum 85%

Minimum 550 beacon

50/50

20% per calendar year

Greater of 3 months interest or IRD, see ETC mortgage commitment for details.

Yes - With qualification

BFS - Self Declared Income permitted

Maximum 80%

No minimum beacon

50/50

N/A

With 1 month’s written notice, client is subject to 1 month’s interest penalty. Without 1 month’s notice, client is subject to greater of 3 months interest or IRD.

Yes - With qualification

BFS - Self Declared Income permitted

Maximum 80%

Minimum 550 beacon

50/50

Fully open without notice or bonus

N/A

Yes - With qualification

BFS - Self Declared Income permitted

80%

580+

50/50

20+20 annually

3 months or int adj

on approval

will look at BFS

pur-80% refi-75%

550 to 579

50/50

20+20 annually

3 months or int adj

on approval

will look at BFS and soft credit

pur-75% refi-65%

beacon under 549

50/50

20+20 annually

3 months or int adj

on approval

will look at poor credit and BFS

For more information contact lender (see page 32)

OTHER

may 2012 lender guide | 25

FEATURE / lender product guide

LENDER

PRODUCT

PURPOSE OF FUNDS

Residential

1st and 2nd mortgages

Commercial

Retail centres; office, mixed use, fully tenanted industrial; condo inventory; lot inventory; hospitality properties

CHIP Home Income Plan (reverse mortgage)

designed for homeowners 55+ that want to stay in their homes. Funds can be used any way they wish ie: pay off debts, renovate and retrofit homes for aging-in-place rather than moving

PAYMENT FREQUENCY

PRE-APPROVALS

up to 2 years, open and closed terms available

monthly

on a deal-by-deal basis

up to 35 years

up to 2 years, open and closed terms available

monthly, but will consider payment reserves

up to 50% LTV

loan only becomes due when the homeowners choose to move or sell their home

no payments (interest or principal) required for as long as homeowners live in their home.

clients choose to receive funds in lump sum, or monthly, quarterly or annual payments.

≥ $2M

Up to 35 Years (30 years for insured)

All Terms 1,2,3,4,5,7, 10 yr 5 Yr VRM

Weekly Accelerated Weekly Bi-Weekly Accelerated Bi-weekly Semi-Monthly Monthly

Yes

MORTGAGE AMOUNT

AMORTIZATION

TERMS

up to 35 years

up to $5,000,000

FISGARD CAPITAL

HOMEQUITY BANK

ING DIRECT PreApprovals

Online Rate Hold Tool

Purchase Refinance Switch

≥ $2M

Up to 35 Years (30 years for insured)

All Terms 1,2,3,4,5,7, 10 yr 5 Yr VRM

Weekly Accelerated Weekly Bi-Weekly Accelerated Bi-weekly Semi-Monthly Monthly

N/A

5 Year VRM available on all products

See above

≥$3M

Up to 30 Years

5 Year only

Weekly Accelerated Weekly Bi-Weekly Accelerated Bi-weekly Semi-Monthly Monthly

Yes

Conventional

See above

≥$3M

Up to 35 Years

All Terms 1,2,3,4,5,7, 10 yr 5 Yr VRM

Weekly Accelerated Weekly Bi-Weekly Accelerated Bi-weekly Semi-Monthly Monthly

Yes

Insured

See above

≥$3M

Up to 30 Years

All Terms 1,2,3,4,5,7, 10 yr 5 Yr VRM

Weekly Accelerated Weekly Bi-Weekly Accelerated Bi-weekly Semi-Monthly Monthly

Yes

Rentals

Purchase Refinance

≥$3M

35 Year (Conventional) 30 Year (Insured)

All Terms 1,2,3,4,5,7, 10 yr 5 Yr VRM

Weekly Accelerated Weekly Bi-Weekly Accelerated Bi-weekly Semi-Monthly Monthly

Yes

New to Canada

Purchase Refinance Switch

$1.5M

35 Year (Conventional) 30 Year (Insured)

All Terms 1,2,3,4,5,7, 10 yr 5 Yr VRM

Weekly Accelerated Weekly Bi-Weekly Accelerated Bi-weekly Semi-Monthly Monthly

Yes

Refinance

Purchase

≥$3M

35 Year (Conventional) 30 Year (Insured)

All Terms 1,2,3,4,5,7, 10 yr 5 Yr VRM

Weekly Accelerated Weekly Bi-Weekly Accelerated Bi-weekly Semi-Monthly Monthly

N/A

Self Employed

Purchase Refinance

≥ $ 750K Toronto, Calgary, Vancouver only. ≥ $ 600K Rest of Canada

35 Year (Conventional) 30 Year (Insured)

All Terms 1,2,3,4,5,7, 10 yr 5 Yr VRM

Weekly Accelerated Weekly Bi-Weekly Accelerated Bi-weekly Semi-Monthly Monthly

Yes

DND/RCMP

Purchase

≥ $ 3M

35 Year (Conventional) 30 Year (Insured)

All Terms 1,2,3,4,5,7, 10 yr 5 Yr VRM

Weekly Accelerated Weekly Bi-Weekly Accelerated Bi-weekly Semi-Monthly Monthly

Yes

Bridge Financing 30 day term / Prime + 2%

Purchase

< $250K (≥ $250K add’l premium applied)

N/A

N/A

N/A

Second Homes

Purchase Refinance

≥ $ 3M

All Terms 1,2,3,4,5,7, 10 yr 5 Yr VRM

Weekly Accelerated Weekly Bi-Weekly Accelerated Bi-weekly Semi-Monthly Monthly

Yes

26 | lender guide may 2012

35 Year (Conventional) 30 Year (Insured)

FEATURE / lender product guide

LOAN TO VALUE

BEACON

up to 75%

GDS/TDS

PREPAYMENT

PREPAYMENT PENALTY

no min. beacon

available

3 months interest on closed term

Lending areas: BC and Alberta only

up to 75%

no min. beacon

available

3 months interest on closed term

Lending areas: BC and Alberta only

up to 50% LTV

no credit qualifications

no credit qualifications

clients may choose to pay interest or principal at any time.

an early payment charge may apply for principal repayments depending on when repayment is made, but may be waived or reduced in the event of death or move to a long-term care facility or retirement residence.

some flexibility

Up to 95%

620

32% / 42%

N/A

N/A

N/A

Up to 95%

620

N/A

N/A

N/A

N/A

Up to 95%

620

35% / 45% (Conv) 32% / 42% (Insured)

25% / 25%

3 Months Interest

Yes

80%

620

35% / 45%

25% / 25%

Greater of 3 Months Interest Payments or IRD

Yes

95%

620

32% / 42% (if beacon <680, Unlimited GDS / 44%

25% / 25%

Greater of 3 Months Interest Payments or IRD

Yes

80% (Conventional)

680

Unlimited GDS / 42%

25% / 25%

Greater of 3 Months Interest Payments or IRD

Yes

65% (Conventional) 95% (insured) 85% (Refinance)

620

35% / 42%

25% / 25%

Greater of 3 Months Interest Payments or IRD

Yes (If permanent residence.)

No (If on Worker Permit)

80% (Conventional) 85% (Insured)

620

35% / 45% (Conv) 32% / 42% (Insured)

25% / 25%

Greater of 3 Months Interest Payments or IRD

Yes

90% (Purchase/Port) 85% (Refinance)

620

N/A (stated income)

25% / 25%

Greater of 3 Months Interest Payments or IRD

Yes

620

35% / 45% (Conv) 32% / 42% (Insured)

25% / 25%

3 Months Interest

Yes

N/A

N/A

N/A

N/A

N/A

620

32% / 42%

25% / 25%

Greater of 3 Months Interest Pymts or IRD

Yes

For more information contact lender (see page 32)

PORTABILITY

OTHER

50bps discount for clients that choose to pay their full annual interest

Rate Hold for 30 days, + 90 if rate hold turns to real deal within first 30 days

may 2012 lender guide | 27â&#x20AC;&#x201A;â&#x20AC;&#x201A;

FEATURE / lender product guide

LENDER

PAYMENT FREQUENCY

PRODUCT

PURPOSE OF FUNDS

MORTGAGE AMOUNT

AMORTIZATION

TERMS

PRE-APPROVALS

Express Switch

Switch

≥ $500K

35 Year (Conventional) 30 Year (Insured)

All Terms 1,2,3,4,5,7, 10 yr 5 Yr VRM

Weekly Accelerated Weekly Bi-Weekly Accelerated Bi-weekly Semi-Monthly Monthly

N/A

HELOC qualifies on greater of 5 yr fixed or 25 yr amortization

Purchase Refinance

≥ $1.5M

Fully Open

N/A

Fully Open

Yes (with Mortgage) No (as stand alone)

Purchase to 95% LTV

Purchases

$750,000 (for higher amount , exceptions are available)

30 years

6 months to 5 years

Monthly, bi-weekly, weekly

N/A

Refinance to 85%

Refinance

See above

30 years

6 months to 5 years

Monthly, bi-weekly, weekly

N/A

Rentals

Purchases/Refinances

See above

30 years

6 months to 5 years

Monthly, bi-weekly, weekly

N/A

Low Doc Program

Purchase/Refinances

See above

30 years

6 months to 5 years

Monthly, bi-weekly, weekly

N/A

Variable Product

Purchase/Refinance

See above

30 years

3 and 5 years

Monthly, bi-weekly

N/A

Ace

Purchase/Refinances

Up to $750,000

Up to 30 years

1 to 5 years

Monthly, bi-weekly, weekly

N/A

Classic

Purchase/Refinances

Up to $750,000 - higher amounts may be considered case by case

Up to 30 years

1 to 5 years

Monthly, bi-weekly, weekly

N/A

FIXED - 6-month convertible

Purchase/refinance

max. $500,000

max. 25 years

6-month convertible which can be converted to a longer term

monthly, semi-monthly, bi-weekly or weekly

No

FIXED - 1-year open

Purchase/refinance

max. $500,000

max. 25 years

6-month convertible

monthly, semi-monthly, bi-weekly or weekly

Yes (1-5 yrs) No (7 & 10 yrs)

FIXED - 1-10 years closed

Purchase/refinance

1-5 years: $750,000; 7 & 10 years: $500,000 (exceptions are available for 5, 7 & 10 years)

30 years (some exceptions may be available to transfer-ins)

6-month convertible

monthly, semi-monthly, bi-weekly or weekly

No

VARIABLE - VPI M-Power

Purchase/refinance

$750,000 (standard process); $750,000 to $2 million (exception process)

30 years (some exceptions may be available to transfer-ins)

5 years closed

monthly, semi-monthly, bi-weekly or weekly

No

LOC - Home Account (1st) & Home Account Plus (2nd)

Purchase/refinance

$750,000 (standard process); $750,000 to $1 million (exception process) (For Home Account Plus, this is the combined total loan amount of the standard 1st loan and 2nd HELOC loan)

25 years

25 years Interest only period: low ratio = 5, 10 or 25 years; high ratio=N/A

monthtly

N/A

Standard Mortgage

Purchase/ Refinance / Switch

Minimum 50K / more than 1.2 million sliding scale applies

30 years

1-7 Years, 10 Years

ACCLT WEEKLY/BIWEEKLY AND MONTHLY

YES

ALL-IN-ONE

Purchase/refinance

Minimum 50K / more than 1.2 million sliding scale applies

25 Years

N/A

Intrest only Montly or P&I

NO

Cashback

Purchase/Refinance/ Switch

Minimum 50K / more than 1.2 million sliding scale applies

30 Years

1 -7 Years and 10 Years

ACCLT WEEKLY/BIWEEKLY AND MONTHLY

YES

HOME TRUST COMPANY Accelerator Products

Classic Products

MCAP

NATIONAL BANK OF CANADA

28 | lender guide may 2012

FEATURE / lender product guide

LOAN TO VALUE

BEACON

GDS/TDS

PREPAYMENT

PREPAYMENT PENALTY

PORTABILITY

75%

650

N/A

25% / 25%

Greater of 3 Months Interest Payments or IRD

Yes

80%

620

35% / 42%

Fully Open

Fully Open

Yes

95%

Min 620

35/42

20/20 available annually on anniversary date

Greater of open on 3 months interest or IRD

Yes

85%

Min 620

35/42

20/20 available annually on anniversary date

Greater of open on 3 months interest or IRD

Yes

80%

Min 650

35/42

20/20 available annually on anniversary date

Greater of open on 3 months interest or IRD

Yes

Purchase 90%, Refinances 85%

Min 650

35/42

20/20 available annually on anniversary date

Greater of open on 3 months interest or IRD

Yes

Purchase 95%, Refinances 85%

Min 620

35/42

20/20 available annually on anniversary date

Closed for the first 3 yrs. After the 3rd yr, the penalty is the greater of, open on 3 months interest or IRD

Yes

Up to 80% * subject to province

Min 600

32/40

20/20 available annually on anniversary date

Greater of open on 3 months interest or IRD

Yes, subject to qualification of new borrower

Up to 80% * subject to province

Min 570 *loan may be considered on case by case basis

32/40

20/20 available annually on anniversary date

Greater of open on 3 months interest or IRD

Yes, subject to qualification of new borrower

Min. 600

Beacon < 680: GDS=35% TDS=42%; Beacon > 680: GDS=N/A TDS=44%

20/20

Greater 3 months interest or IRD (may be converted to a longer term at no cost)

Yes

Min. 600

Beacon < 680: GDS=35% TDS=42%; Beacon > 680: GDS=N/A TDS=44%

Fully open

Fully open

Yes

Purchase: Low Ratio (1-2 units) = 80% High Ratio (1-2 units) = 95% High Ratio (3-4 units) = 90% Refi: Low Ratio (1-2 units) = 80% High Ratio (1-2 units) = 85% High Ratio (3-4 units) = 85% Max LTV for condos is 75%

Min. 600

Beacon < 680: GDS=35% TDS=42%; Beacon > 680: GDS=N/A TDS=44% For 7 & 10 years low ration: GDS=35%

20/20

Greater 3 months interest or IRD. After the 5th anniversary: 3 months interest

Yes

Purchase: Low Ratio (1-2 units) = 80% High Ratio (1-2 units) = 95% High Ratio (3-4 units) = 90% Refi: Low Ratio (1-2 units) = 80% High Ratio (1-2 units) = 85% High Ratio (3-4 units) = 85% Max LTV for condos is 75%

Min. 600 (exceptions available)

Beacon < 680: GDS=35% TDS=42%; Beacon > 680: GDS=N/A TDS=44% For 7 & 10 years low ration: GDS=35%

20/20

3 months interest (at prevailing interest rate or MCAP Prime Rate, whichever is greater) during full 5 years

Yes

Low ratio (1-4 units)=80% (for Home Account Plus, combined LTV includes 1st and 2nd mortgage)

Min. 650 (exceptions available)

Beacon < 680: GDS=35% TDS=42%; Beacon > 680: GDS=N/A TDS=44%

Fully open

Fully open

Yes

95%

620 Conventional and 680 High ratio

32 / 40

Up to 10% of the Original Amount with out indemnity and or Increase P&I by 100% once annually and or pay an additional amount no exceeding P&I on every payment due date

IRD OR 3 months Interest

Yes

80%

680

28/38

N/A

N/A

Yes

95%

620/ CONVENTIONAL & 650 HIGH RATIO

32/40

Up to 10% of the Original Amount with out indemnity and or Increase P&I by 100% once annually and or pay an additional amount no exceeding P&I on every payment due date

IRD OR 3 months Interest

Yes

Purchase: Low Ratio (1-2 units) = 80% High Ratio (1-2 units) = 95% Low Ratio (1-2 units) = 80% High Ratio (1-2 units) = 85%

Refi:

Purchase: Low Ratio (1-2 units) = 80% High Ratio (1-2 units) = 95% Low Ratio (1-2 units) = 80% High Ratio (1-2 units) = 85%

Refi:

For more information contact lender (see page 32)

OTHER

VRM can be convertible ant any 3 or 5 yr Accelerator rate.

may 2012 lender guide | 29â&#x20AC;&#x201A;â&#x20AC;&#x201A;

FEATURE / lender product guide

LENDER

PRODUCT

PURPOSE OF FUNDS

MORTGAGE AMOUNT

AMORTIZATION

TERMS

PAYMENT FREQUENCY

Equity up to 65% LTV

Purcase/Refinance/Switch

Minimum 50K / more than 1.2 million sliding scale applies

30 Years

1 -7 Years and 10 Years

ACCLT WEEKLY/BIWEEKLY AND MONTHLY

NO

Genworth Alt.A

Purchase / Refinance

Purchase up to 750K in Vanacouver, Calgary and Toronto & 600K for the rest of Canada, Refinance up to 200K in new funds

30 Years

1 -7 Years and 10 Years

ACCLT WEEKLY/BIWEEKLY AND MONTHLY

NO

Cottage Type A & B

Purchase / Refinance

Minimum 50K / more than 1.2 million sliding scale applies

Insured Type A: 30 Years, Type B: 25 years / Conventional 25 Years for both

1 -7 Years and 10 Years

ACCLT WEEKLY/BIWEEKLY AND MONTHLY

NO

Made to Measure

Purchase / Refinance/Switch

Minimum 50K / more than 1.2 million sliding scale applies

30 Years

1 -7 Years and 10 Years

ACCLT WEEKLY/BIWEEKLY AND MONTHLY

NO

NON-Resident

Purchase only

Minimum 50K and Maximum is 600K in Toronto, Vancouver, Ottawa and Calgary & Maximum 500K Quebec City and Moncton

30 Years

1 -7 Years and 10 Years

ACCLT WEEKLY/BIWEEKLY AND MONTHLY

NO

NEW IMMIGRANT CONVENTIONAL

Purchase only

Minimum 50K and Maximum is 600K

30 Years

1 -7 Years and 10 Years

ACCLT WEEKLY/BIWEEKLY AND MONTHLY

NO

NEW IMMIGRANT High Ratio

Purchase only

Minimum 50K and Maximum is 600K

30 Years

1 -7 Years and 10 Years

ACCLT WEEKLY/BIWEEKLY AND MONTHLY

NO

Rental Conventional Only

Purchase/Refinance/ Switch

Minimum 100K for Canada except Atlantic Minimum 75K

30 Years

1 -7 Years and 10 Years

ACCLT WEEKLY/BIWEEKLY AND MONTHLY

NO

Residential -Equity Available in BC only

Purchase, refinance

Min. $200,000, max. $2.5 million

Max. 30 year, min. 15 years

1 - 5 yr fixed

Purchase, Refinance, Equity Take out

Up to $1MM, some exceptions

Up to 30 yrs

1, 2, 3, 4, 5

Monthly, weekly, biweekly, semi-monthly; accelerated and non accelerated

No

3 yr Adjustable rate

Purchase, Refinance, Equity Take out

Up to $1MM, some exceptions

Up to 30 yrs

3

Monthly, weekly, biweekly, semi-monthly; accelerated and non accelerated

No

Min. $2 million; max. $75 million

Interest only or flexible amortization

From 2 months to 3 years

Monthly - in some cases loans can include an interest reserve

Mortgages are interest only and therefore amortization periods are not applicable

1 to 2 years

PRE-APPROVALS

PEOPLE’S TRUST Please call for further information

RADIUS FINANCIAL

ROMSPEN INVESTMENT CORPORATION Commercial

VECTOR FINANCIAL SERVICES Commercial

Purchase (renewal of existing mortgages are merit-based)

XCEED MORTGAGE CORPORATION XCEED AAA Prime Mortgage

Purchase, Refinance

Min $50,000, max $1M in certain areas

20-30 years

3 and 5 years

Monthly, bi-weekly (regular and accelerated), weekly (regular and accelerated)

No

XCEED XTRAGREEN™ Mortgage (-5 bps to XCEED Posted rate, supports eco-friendly pruchases/ refinances)

Purchase, Refinance

Min $50,000, max $1M in certain areas

20-30 years

3 and 5 years

See above

No

XCEED RRSP/PREP™ Mortgage (offers $500 cash back towards RRSP or RESP contribution from refinance proceeds)

Refinance

Min $50,000, max $1M in certain areas

20-30 years

3 and 5 years

See above

No

XCEED Simplicity Mortgage (-20 bps to XCEED Posted rate)

Purchase, Refinance

Min $50,000, max $1M in certain areas

20-30 years

5 years

See above

No

XCEED PRIME Conventional Mortgage (up to 75% only, XCEED pays insurer’s premium)

Purchase, Refinance

Min $50,000, max $1M in certain areas

20-30 years

3 and 5 years

See above

No

30 | lender guide may 2012

FEATURE / lender product guide

LOAN TO VALUE

BEACON

GDS/TDS

PREPAYMENT

PREPAYMENT PENALTY

PORTABILITY

65%

680

75%/75% GDS/TDS for BFS CLIENT & 75/75 for Salaried and Salaried plus commission and pensioner at 50% LTV and 50%/50% GDS/ TDS at 65% LTV

See above

IRD OR 3 months Interest

Yes

1-2 unit Purchase 90% and 1-2 unit refinance 85% all have to be owner occupied

620 - UP TO 85% LTV & 650+ 85.01 to 90% LTV

35% GDS/ 42% TDS with beacon of 620-679 & N/A GDS/44% TDS with beacon of 680+

See above

IRD OR 3 months Interest

Yes

Type A : Purchase 95% refinance 85% / Type B: 90% Purchase no refinance

620 Conventional and 680 High ratio

32/40 GDS.TDS

See above

IRD OR 3 months Interest

Yes

95% Purchase / 85% Refinance

620

32/40 GDS.TDS / UP to 44% for Insured

See above

IRD OR 3 months Interest

Yes

65% LTV Conventional

N/A

N/A

See above

IRD OR 3 months Interest

NO

65% LTV Conventional

N/A

N/A

See above

IRD OR 3 months Interest

NO

95% LTV on single and duplex & 90% LTV on triplex and fourplex

600

32/40

See above

IRD OR 3 months Interest

Yes

80% LTV Conventional

680

32/40

See above

IRD OR 3 months Interest

YES

65% refinance, 65% purchase

Use this criteria as a guide only, not as a qualifier

Up to 95%

Minimum 650, exceptions considered

Based on Insurer guidelines

20/20

Greater of 3 mos or IRD

Yes on qualification, some conditions apply

CMHC & Genworth Insured products available; Business for Self, Rentals, New Immigrants & Flex Down. Increase & Blend Refinances and Assumptions available upon Qualification

Up to 95%

Minimum 650, exceptions considered

Based on Insurer guidelines

20/20

3 Mos

Yes on qualification, some conditions apply

CMHC Insured. Business for Self, Rentals, New Immigrants & Flex Down available.

Assumptions available upon qualification

Up to 65% on commercial/insustrial/ land and construction loans, higher LTV ratios will be considered with collateral security; up to 75% on select income producing multi-residential/ commercial/industrial properties

OTHER

Lending Area: Canada and selective US locations

60 to 75%

N/A

N/A

1 month interest

N/A

Up to 95%

Min 620 (minimum beacon score requirement of 680 in Alberta for rentals, BFS, and salaried owneroccupied with LTVs greater than or equal to 90%)

35/42

20/20

Greater of 3 months interest or IRD

Yes

90 day rate hold

Up to 95%

See above

35/42

20/20

Greater of 3 months interest or IRD

Yes

90 day rate hold

Up to 95%

See above

35/42

20/20

Greater of 3 months interest or IRD

Yes

90 day rate hold

Up to 95%

See above

35/42

10/10

Closed unless property is sold or refinanced with XCEED, penalty of greater of 3 months interest or IRD

Yes

90 day rate hold

Up to 95%

See above

35/42

20/20

Greater of 3 months interest or IRD

Yes

90 day rate hold

For more information contact lender (see page 32)

may 2012 lender guide | 31â&#x20AC;&#x201A;â&#x20AC;&#x201A;

Service / directory

Banks

Bridgewater Bank www.bridgewaterbank.ca Ph: 1 888 837 2326 Page 5 Product Guide Page 24

Optimum Mortgage A Division of Canadian Western Trust www.OptimumMortgage.ca Ph: 866 441 3775 Page 12

HomEquity Bank www.homequitybank.ca Ph: 1 866 522 2447 Page 9 Product Guide Page 26

Peoples Trust www.peoplestrust.com Ph: 1 800 663 0324 Product Guide Page 30

Radius Financial www.radiusfinancial.ca Ph: 1 877 369 6398 Product Guide Page 30

National Bank www.nbc.ca Ph: 1 888 483 5628 Product Guide Page 28

Non-Bank Lenders

Equitable Trust Company www.equitabletrust.com Ph: 1 866 407 0004 Page 7 Product Guide Page 24

Street Capital www.streetcapital.ca Ph: 877 416 7873 Pages 18-19

Equity Financial Trust Company www.equityfinancialtrust.com Ph: 1 866 393 4891 Page 11 Product Guide Page 24

Xceed Mortgage Corporation www.xceedmortgage.com 888 811-6660 Product Guide Page 30

Commercial Lenders

ROMSPEN Investment Corporation www.romspen.com Ph: 1 800 494 0389 Inside Front Cover Product Guide Page 30

Fisgard Captial Corporation www.fisgardmortgage.com Ph: 1 866 382 9255 Product Guide Page 26

Home Trust www.hometrust.ca Ph: 1 877 903 2133 Outside Back Cover Product Guide Page 26

Vector Financial Services www.vectorfinancialservices.com Ph: 1 866 483 8018 Product Guide Page 30 Technology & Software

ING Direct www.ingdirectbrokerteam.ca Ph: 1 800 574 5629 Product Guide Page 26

MCAP www.MCAPBROKER.com Ph: 1 866 289 7389 Inside Back Cover Product Guide Page 28

32 | lender guide may 2012

Strategic Information Technology (SIT) www.stratinfotech.com/ Ph: 905 640 0808 Page 17

My deals run more efficiently.

My customers are happy.

I earn more.

[

I T â&#x20AC;&#x2122; S N OT R O C K E T S C I E N C E

]

MCAPâ&#x20AC;&#x2122;s bold new initiatives and tools are designed to fuel your productivity and revenue. Explore our growth vehicles such as our loyalty program MPoints and Professor, our 24/7 broker portal.

Get better programs and better service with MCAP - a better deal.

To learn more, please visit: mcap.com/brokers

I

I

MCAP Service Corporation Ontario Mortgage Brokerage #10515 Ontario Mortgage Administrator #11692

Our common sense approach opens the doors to home ownership even wider.

As Canadaâ&#x20AC;&#x2122;s leading alternative mortgage lender, Home Trust Company has been opening our doors to brokers for over 25 years. Our dedicated underwriting team always uses a common sense approach, allowing you to close more deals.

Itâ&#x20AC;&#x2122;s as simple as that. Yet another way Home Trust helps you open more doors when opportunity knocks.

MORTGAGES

|

CREDIT

|

VISA

|

DEPOSITS

|

www.hometrust.ca