CMP Lending Guide 17.01 by Key Media

LENDING GUIDE 2022 MPAMAG.COM/CA

ALTERNATIVE LENDING With limited inventory, flexible mortgage solutions are top of the lending agenda

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Alt lending continues its upward trend The future looks bright for Canada’s alternative and private lending spaces, which have surged in popularity during the pandemic IT’S BEEN a banner 24 months for the alternative lending scene in Canada, with the sector barnstorming through the red-hot mortgage market of the COVID-19 pandemic. Tightening qualification rules among institutional lenders, huge demand for housing across the country, and the need for many borrowers to close on their purchases as quickly as possible have been some of the reasons that alt lending has witnessed such spectacular growth in recent years – although that rise has also come with its fair share of challenges. CMP spoke with some of the leading lenders in Canada’s alternative space to find out how their companies have fared over the past year and what trends they’re expecting to develop in the space.

What have been some of the main challenges faced by mortgage lenders over the past year, and how has your company overcome those hurdles? Armando Diseri, Alta West: During the past year, we’ve experienced some difficulty finding the best fit for specialized roles within our organization. However, we remained patient as we looked to fill in the gaps across our organization and took our time finding the right fit for roles rather than rushing to hire quickly, using recruiters to help find the best candidates, while our team across all service lines stepped up and contributed to ensuring we were still delivering the best service for our broker partners and their clients.

Overcoming the headwinds and uncertainty of the pandemic, we’ve continued to evolve beyond circumstances out of our control. We’ve learned to adapt using technology to keep connected with our broker partners to ensure timely closings on expedited deals. This has been a great benefit as we now have more information-sharing and a new, heightened focus on using social media as a great communication tool. We have also continued to grow by adopting new technologies by implementing a new CRM, which has allowed for connectivity to sync with all five broker submission platforms. This enables our business to scale and grow as demand increases each year. We’re excited to announce that as we continue

MEET THE EXPERTS

Armando Diseri Head of national mortgage sales, Alta West Capital

Reid Quan Director, business development and real estate, Breakwater Financial

Steven Lang National sales manager, VWR Capital Corp.

Chris Baker Vice president, alternative lending, Capital West Mortgage Inc.

Eric Larocque Managing director, sales, marketing and originations, Community Trust

Stephen Kissuk Chief credit officer, Strive Capital Corporation

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least for some the ability to own their own home. However, one undeniable aspect is how housing prices across the country have continued to rise at a considerable rate. Combine this with all the other market forces at play, and it’s easy to understand why the mortgage industry is also evolving quite rapidly. But this is where lenders like Community Trust have a distinct advantage. Our focus has always been on delivering a flexible alternative to traditional financial institutions, in addition to arming our partners with some of the best rates in the alternative lending space. This has enabled us to continue on our mission of helping even more Canadians become more financially

“Increased competition in the alternative lending space, combined with lender liquidity, led to downward pressure on interest rates” Chris Baker, Capital West Mortgage successful and secure, especially when the banks have become increasingly unable to do so. It’s our commitment to the broker community to remove these obstacles for their clients so they can achieve their goals of homeownership that means our position has actually been strengthened.

Stephen Kissuk, Strive Capital Corporation: Strive is a company that started its business in the summer of 2021 during a heated real estate market. We know existing lenders struggled with working remotely, payment deferrals, and maintaining service levels. Fortunately for Strive,

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Your lender should remove obstacles, not be one. Ensuring our borrowers see a clear path to success is our unique specialty. We’re one of North America’s leading commercial non-bank mortgage lenders with over $3 billion under administration. We specialize in bespoke lending solutions for commercial real estate financing in amounts from $10M to $400M. We’ll share your vision, and your entrepreneurial mindset, to provide time-sensitive lending and financing solutions. Let’s talk. | 800 494 0389 | romspen.com

DATE:

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MARCH 10, 2022 - 12PM

Investment Corporation

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we built the business with the flexibility for all our staff to work remotely from day one. Because we are a new lender, we also didn’t have any mortgages which required payment deferrals. And with regard to service levels, we were very deliberate to manage our growth slowly to ensure that every broker’s first encounter with us left them coming back for ‘A Better Lending Experience.’

times may go knock on those doors again and simply try to capitalize on the low rates still available. I encourage those who typically only focus on getting the best rate to work with a mortgage broker and learn more about all of the options available out there. It’s very possible that a better overall fit exists for a borrower outside of the traditional institutional lending space.

Many Canadians gravitated towards the alt-lending space during the pandemic. Do you expect that shift to continue?

Steven Lang, VWR Capital Corp: This

Armando Diseri, Alta West: During the past year, a lot of Canadians have transitioned their careers to becoming consultants, independent business owners and innovative entrepreneurs. As a result, we anticipate this trend will continue to flourish as people enjoy increased flexibility with uncompromised connectivity. In the alternative lending space, we’re seeing more business-for-self individuals unable to qualify for traditional financing, and there is also a segment that enjoys the ease of approval, quickness of closing and flexibility that an alternative lender can offer.

Reid Quan, Breakwater Financial: On one hand I think it’s highly possible if there is a clearly charted rate increase schedule announced. I think non-institutional lenders offer much-needed flexibility to borrowers, both for their own homes or for investment property purposes. I believe borrowers learned that quickly during the height of the pandemic, and the stigma around non-institutional lenders changed. Although rates should remain low for the foreseeable future, those who have worked with and gotten a taste of what non-institutional lenders can do for them could very well continue to do so and convince others in their circles to do the same. On the other hand, those who were denied by the banks due to a variety of reasons within the uncertain pandemic

has been true since the introduction of technology and access to information at our fingertips. Another factor that’s going to impact this is open banking at some point in Canada. As the private lending community continue to educate brokers across the

even steeper gradient than we’ve seen so far. However, while the pandemic was certainly a contributing factor, this is by no means the only reason we are seeing this shift. Overall, the needs of Canadians are increasingly not being met by the traditional banks, and this is why more and more are choosing to partner with a mortgage broker to help them navigate their individual situation – whether this is as a result of the pandemic or of any other circumstances that may exist. This has led us to a number of interesting observations. We can see that the quality of our borrowers is shifting, and they are no longer finding their way to us just because the big banks said no. This is C

“Non-institutional lenders offer much-needed flexibility to borrowers, both for their own homes or for investment property purposes” M

Chris Baker, Capital West Mortgage: Institutional lenders will typically be a buyer’s first choice given the lower rates. I would say buyers gravitate away from conventional financing if they cannot qualify or need shorter-term financing. Loan sizes versus income levels have pushed many buyers into the alternative lending space and Capital West Mortgage will continue to offer a strong product line-up to support these borrowers.

Eric Larocque, Community Trust: The evidence definitely points to this trend continuing, and we believe it will be at an

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country and think outside of traditional lending boxes, this trend is likely to continue at the same or greater pace moving forward.

Reid Quan, Breakwater Financial

a perception that’s disappearing fast. Instead, a lot of this can be attributed to the competitive rate environment, where it no longer feels like there is much of a difference between the two options. But it also comes from the flexibility and easiness we can offer versus a more traditional financial institution. So what we’re seeing now is that alternative lenders are being embraced by more Canadians than ever before.

Stephen Kissuk, Strive Capital Corporation: Absolutely. The rapid increase in house price appreciation across the country without commensurate salary/wage increases means that debt serviceability ratios are trending upwards. Many formerly prime or ‘bankable’ borrowers are therefore being forced toward alt lenders.

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LENDING GUIDE

The right solution for the right client Canadian Mortgages Inc. offers flexible and tailor-made lending solutions where the banks fall short

NOT LONG ago, private lending was considered a last resort for borrowers desperately seeking financing options. Terms like ‘poor-credit borrower’ were routinely thrown out to describe those seeking the services of a private lender. That kind of simplistic thinking about private lending has changed, and the mortgage industry has changed with it. Now, alternative lending solutions are recognized as viable options for both private residential borrowers and seasoned investors. Private lenders have steadily become a vital and necessary component of the Canadian mortgage landscape. Canadian Mortgages Inc. (CMI), a leading national private lender, recognizes that every borrower’s financial picture is unique, and providing options to those that fall outside strict traditional lending guidelines is the company’s driving purpose. Providing flexible mortgage financing solutions that look beyond Beacon scores, income source, and debt servicing ratios has driven more than $1 billion in private mortgage fundings. “We pride ourselves on our commonsense approach. Every deal presented is reviewed on its merits. There’s no rigid approach of ‘Does it fit into this box?’” says Cynthia Clark, CMI’s operations lead, mortgage originations. Questions such as ‘Does this file make

sense?’, ‘Does this income make sense?’, and ‘Does this property make sense?’ are some of the criteria CMI’s lenders ask when adjudicating deals and formulating solutions. It’s the big picture – the story behind

predicts that traditional bank loans may be further out of reach for many borrowers. Homeowners could be facing a financial pinch when it comes time to renew their mortgages. Even a slight increase

“We can provide our CMI second mortgage to help homeowners access the equity in their homes to buy a vehicle, fund a vacation, pay for renovations, fund the purchase of another property, or to pay off other debts” Cynthia Clark, Canadian Mortgages Inc. the numbers – that is most important. “We’re always looking for ways to say yes and make the deal happen,” Clark explains.

Bridging the mortgage gap The need for private mortgage options will continue to surge as broader economic factors impact the Canadian mortgage landscape. With the recent quarter of a per cent increase in the Bank of Canada’s overnight lending rate to curb inflation levels not witnessed since the early 1990s, Clark

to their borrowing rate could make their payments unaffordable. “Private lending is going to be a vital alternative for people that don’t meet the more rigid criteria used by the banks,” Clark says. Clark also points to increasingly stringent mortgage stress tests and the overall tightening of lending guidelines as further motivation for some borrowers to seek private financing. CMI is positioned to help borrowers who may be looking for short-term, quickly

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negotiated financing to fill the lending gap. “We focus on integrity, excellence and doing the right thing,” she says. “We are fully transparent. There’s nothing hidden from clients, so there are no surprises like hidden penalties or discharge fees at the end of the term.” Clark acknowledges that the misconceptions surrounding private lending have dissipated for many borrowers and the brokers who serve them. Mortgage professionals are more aware of the flexibility private financing provides, and the speed at which it can be approved and funded.

The CMI advantage CMI can approve deals in as little as an hour and fund them within one business day. The company can also provide a flexible range of borrowing options, including custom terms, that are simply not possible

through traditional lending avenues. “Our CMI second mortgage can help homeowners access the equity in their homes to buy a vehicle, fund a vacation, pay for renovations, fund the purchase of another property, or to pay off other debts,” Clark says. “We also offer our CMI Bundle Mortgage, which is a flexible, cost-effective solution for high-ratio borrowing – above 80% loan-to-value – for either a new purchase or refinance.” CMI can also provide options like interest-only and prepaid mortgages, as well as short-term bridge financing that’s as brief as a few days.

Looking ahead CMI is further streamlining its lending processes for broker partners in 2022. “We are really excited for the upcoming

launch of our new broker website,” Clark says. “It will make it easier for our brokers to get the information that they need to submit their deals to us and get their clients financed fast.” Even prior to the COVID-19 pandemic, CMI was ahead of the curve with its contactless end-to-end process and was well equipped when physical distancing forced other lenders to adjust their deal submission and funding practices. Clark predicts that even when social distancing and work-from-home requirements end, many of these digital processes are here to stay and will continue to move the private lending space forward. Continually innovating and expanding the company’s technological footprint will yield even more positive results for CMI, Clark says. “We’re only getting more and more efficient.”

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LENDING GUIDE

ALTA WEST CAPITAL awcapital.ca

Products: Up to 85% LTV on first, second and third mortgages

888-554-9075 Lending markets: Urban/suburban centres in Ontario, Alberta and British Columbia Niche/focus: Providing alternative capital funding using an equitybased lending approach on all refinances/purchases of residential properties, multiresidential properties and commercial properties

Customer types: Business for self, new to Canada, bruised or damaged credit, etc.

Minimum Beacon: None Terms: Six-month, one-year or two-year terms Rate: As low as 5.49%

Property types: All residential homes, multiresidential up to 15 units, and commercial properties Purposes: Purchase, refinance, bridge financing Maximum LTV: Up to 85%

Maximum amortization: Interest only or up to 35 years Fees: As low as 1.50% Preferred loan amount: $30,000 to $3 million

You deserve better.

See the difference? Experience the difference.

A Better Lending Experience brokers@strivecapital.ca • www.strivecapital.ca

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BANCORP FINANCIAL SERVICES INC. bancorpfinancial.com

Property types: All commercial asset classes

604-608-2717

Fees: 1–2% lender fees Minimum loan amount: $1.5 million

Maximum LTV: 75% Lending markets: British Columbia and Alberta Niche/focus: Multifamily construction loans

Maximum loan amount: $50 million Minimum Beacon: n.a. Terms: One to two years

Special features: Flexible lending program and can move quickly

Rates: 6–12% Products: First and second mortgages Maximum amortization: Interest only Customer type: Developers

NOW YOU’RE IN THE DRIVER’S SEAT.

With uDrive, you’re in control. As an alternative MIC mortgage lender, we focus on being a good business partner to our broker community. We work diligently to find creative solutions for your clients who don’t qualify for traditional financing. • uDrive: No Fee or Lower Rate • Residential 1st and 2nd mortgages • Fully open options available • Lending in BC, AB, MB and ON • One or two year terms available • Maximum LTV of 75% • Submissions can be made via Expert, Velocity or Lendesk

INVEST. LEND. GROW. threepointcapital.ca uDrive@threepointcapital.ca | 1.800.979.2911

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BREAKWATER FINANCIAL LIMITED breakwaterfinancial.ca 905-806-2292 Lending market: Southern Ontario Niche/focus: Residential and commercial first mortgages within the GTA, SWO and Niagara regions Products: Primarily first mortgages for residential end users and investors, commercial investors and owneroccupier borrowers, and borrowers looking to use existing equity in other owned properties for blanket mortgage purposes Customer types: A-, B- or C-level credit. Salaried; self-employed; investors with portfolios and available equity

Income sources: Salaried; self-employed; income from existing investment properties

Maximum amortization: Interest-only is standard; principal & interest is possible and deal-specific

Property types: Single-family residential, multifamily residential, mixed use, industrial

Fees: 1.5–2% (typical)

Purposes: Purchase, refinance, ETO, bridge loans

Maximum loan amount: $5 million

Maximum LTV: 65% Minimum Beacon: 550 Terms: 12 months closed is standard (open to longer/shorter and can be flexible on structure)

Minimum loan amount: $250,000

Special features: We work with a lot of investors and offer blanket-mortgage solutions for multiple properties and portfolios. We can be flexible on deal structure, while providing reliable and approachable customer service to everyone we work with. We can fund within three to five business days if warranted

Rates: 7.5–8% (typical)

CAPITAL WEST MORTGAGE INC. capitalwest.ca

Purposes: Purchase, refinance, equity take-out, bridge and inter alia

604-365-4244 Maximum LTV: 75% Lending markets: BC – Greater Vancouver, Sea to Sky, Okanagan, Victoria

Minimum Beacon: None; credit to be reviewed on a case-by-case basis

Niche/focus: Common-sense lending and a range of products from two diverse mortgage portfolios

Terms: Pacifica One-year open term

Products: First and second mortgages

Non-traditional One- to five-year closed terms One-year open term

Property types: Residential properties, commercial properties and land

Rate type: Fixed or floating Maximum amortization: Interest only or 30-year maximum Fee: 2%, typically split with the broker Preferred loan amount: Pacifica $100,000 minimum No maximum Non-traditional $100,000 to $4 million

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INSIDER 2022 looks bright for our Insiders. Alternative Lending • Competitive Compensation Dedicated Underwriting • Exclusive Experiences • Promotions

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LENDING GUIDE

CANADIAN MORTGAGES INC. thecmigroup.ca 888-465-8584 Lending markets: Ontario, Quebec, British Columbia, Alberta, Manitoba and Atlantic Canada Niche/focus: Customized private mortgage financing delivered exclusively through the mortgage broker channel. Offering flexible, innovative solutions tailored to your clients’ needs. First and second mortgages up to 85% LTV with

competitive rates. Known for ethical lending practices and exceptionally fast service

considered: salary, commission, business for self, freelance, retired and Canada Response Benefit (CRB)

Products: First, second and third mortgages, short-term and bridge loans, equity mortgages, bundle mortgages, renovation financing

Property types: All one- to four-unit owner-occupied, rental and mixed-use residential properties, including condos and cottages. No restrictions on location. Remote and rural properties considered on a case-by-case basis

Customer types: A, B and C level credit Minimum Beacon: None Income sources: All income types

Purposes: Financing available for purchases, business working capital, debt consolidation, bridge loans,

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investment purposes, tax or mortgage arrears, pandemic relief, home renovations and more Maximum LTV: Up to 85% on first mortgages, 85% on second mortgages. Third mortgages/blanket mortgages case by case

Rate type: Fixed Maximum amortization: Up to 40 years or interest only Fees: 1–3% on first mortgages, 2–6% on second mortgages. All fees are location, income, credit and securitydependent

Minimum Beacon: None Terms: Three, six, nine, 12 and 24 months. Custom terms available on a case-by-case basis

Minimum loan amount: $50,000 on first mortgages, $25,000 on second mortgages

Maximum loan amount: Up to $3 million–$5 million in urban markets Special features: No hidden application fees; early repayment penalties no more than three months; open mortgages and custom term lengths available. CHIP/reverse mortgage second mortgages; second behind collateralcharge mortgages; high-ratio mortgage bundles, short-term/bridge available

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COMMUNITY TRUST communitytrust.com/wecare 888-649-1169 Lending markets: Ontario and British Columbia

Income sources: Self-employed, salaried, child tax credit/UCB, foster care, maternity/paternity income, seasonal employment, alimony/child support, pension, contract, rental, tip, disability, investment, commission-based

Niche/focus: Alt-A lending Products: Conventional mortgages, non-conforming mortgages, second mortgages, investment properties, business for self (BFS), home equity line of credit (HELOC) Customer types: Clients with all income types accepted, including traditional and non-traditional income sources. Salary, commissioned, BFS and various others. Clients with bruised or limited credit, including those with previous bankruptcies, collections and judgments

Rate type: Fixed Maximum amortization: 30 years Fee: 1%. No-lender-fee mortgages also available Minimum loan amount: $100,000

Property types: Single-family homes, row and townhouses, condo/strata, well and septic, multiunit homes

Maximum loan amount: No listed maximum mortgage amount

Purpose: Financing available to purchase or refinance a principal, secondary or investment property Maximum LTV: 80% (75% for investment properties) Minimum Beacon: 500 FICO score Terms: One, two, three and five years

FIRST SOURCE MORTGAGE CORPORATION firstsourcemortgage.ca 416-221-2238 Lending market: Southern Ontario Niche/focus: Commercial bridge lending, industrial, land, income-producing, etc.

Property types: Commercial and residential first mortgages

Term: One to two years Rate type: Interest only

Purpose: First Source is a boutique private commercial, bridge lender offering flexible lending options with a committed, hands-on approach. We are an asset-based lender evaluating the strength of a loan based on the value of the real estate

Maximum amortization: n.a. Fee: 2% Preferred loan amount: $3 million to $9 million

Products: First mortgages – bridge loans Maximum LTV: 80% Customer types: Builders and developers, private investors, etc.

Minimum Beacon: None

www.mpamag.com/ca

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CREATIVE NON-BANK MORTGAGE SOLUTIONS A DEDICATED MORTGAGE LENDER WITH OVER 25 YEARS OF CREDIT, BUILDER, BROKERAGE, & LENDING EXPERIENCE COMMITTED TO CLOSING YOUR DEALS.

WHEN YOUR COMMERCIAL DEAL NEEDS THE RIGHT LENDER... We can provide you with the guidance, skill, knowledge, speed and creativity to over deliver on client needs and demands. Call us on your next commercial mortgage transaction between $500,000 and $50 million and we'll prove it!

WWW.FIRSTSOURCEMORTGAGE.CA T 416-221-2238 x22 - David Mandel x25 - Steven (Skip) Walters x30 - Leonard Zaidener x27 - Paul Labelle 2235 Sheppard Ave East, Suite 1202, Atria II, North York, ON, M2J 5B5 FIRST SOURCE FINANCIAL MANAGEMENT INC. (LICENSE # 12594)

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FIRST SOURCE MORTGAGE CORPORATION PRINCIPLE BROKER (LICENSE # 10434)

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LENDING GUIDE

MCAN HOME MORTGAGE CORPORATION mcanfinancial.com dealrun@mcanfinancial.com Lending markets: British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Atlantic Canada Focus: Bruised credit, recovering credit from previous life events; rental borrowers, including holding companies; alternative income, including BFS bank statement, contract or commission, contributory and boarder income.

MCAN Home also offers insured, insurable, switch, bridge and adjustable mortgage solutions through our Precision Prime Series Products: XMC Discover Alternative Series. XMC Precision Prime Series also available – ask your MCAN Home BDM for details Customer types: Clients impacted by a life event focused on credit rehabilitation and debt management. Entrepreneurialminded BFS professionals, technicians

and specialists. Clients seeking to build wealth through property investment. Clients with damaged credit and heavy debt seeking solutions to manage and eliminate debt Income sources: Salary, hourly, self-employed, business bank statements, contract, seasonal, CCB, contributory and boarder incomes, foster income, and non-conforming income Property types: One to four units. Detached and semi-detached.

Alternative Lending it’s what we’re known for Your first choice for an Alternative Lender. We have solutions for your:    

Salaried Self-Employed Commissioned Bruised Credit clients

OPTIMUMMORTGAGE.CA OBSESSED WITH YOUR SUCCESS ™

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Duplex (upstairs/downstairs or side by side). Triplex (purpose-built – three units conforming to bylaws). Fourplex (purpose-built – four units conforming to bylaws). Townhouse – freehold/condo/ strata. Townhouse – stacked condo/ strata. Row housing. Apartment condo/ strata – low-rise. Apartment condo/strata – high-rise. Mobile home (marketable to the area and on a permanent foundation). Modular. Historical/heritage/recreational properties can be considered on a case-by-case basis (contact your MCAN Home BDM for details)

Purposes: Purchase, refinance

Maximum amortization: 35 years

Maximum LTV: Discover Alternative: 80%; Precision Prime: 95%

Fee: 1% Minimum loan amount: $100,000

Minimum Beacon: Discover Alternative: 475; Precision Prime: 650 Terms: Discover Alternative: one, two and three years; Precision Prime: three and five years Rate types: Fixed (adjustable available on Precision Prime Series)

Maximum loan amount: $2 million Special features: To provide peace of mind to our clients we also offer a full year of our FREE Home System Warranty program worth up to $10,000 annually. Discounted, unlimited rate buydown

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CWB OPTIMUM MORTGAGE optimummortgage.ca 866-441-3775 Lending market: British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Nova Scotia, New Brunswick, Newfoundland, Prince Edward Island Niche/focus: Full-service lender providing mortgage brokers with lending solutions in the alternative lending space Products: We offer a full range of products to serve our brokers, including alternative mortgages, high-ratio insured mortgages, self-employed and conventional income mortgages, and a very competitive HELOC

ensure that each client’s application is considered based on its own specific merit and circumstances, including but not limited to business for self, salaried, commissioned, and bruised-credit clients Property types: One- to four-unit properties, including detached, semis, townhouses, condos, year-round-access cottages and second homes, and rural properties

Maximum amortization: 30 years Fees: 0–2% Minimum loan amount: $100,000; smaller mortgage amount considered case by case Maximum loan amount: Reviewed on a case-by-case basis Special features: Pre-payment options best for Alt A lender

Purposes: Purchase or refinance Maximum LTV: Up to 80% Minimum Beacon: 500 Terms: One to five years

Customer types: We follow a Sensible Lending® philosophy to

Rate types: Fixed, variable

RECIPROCAL OPPORTUNITIES INC. roigroup.ca

construction projects, industrial, commercial, rental properties, special purpose properties

Maximum amortization: Interest only

Lending market: Ontario

Purpose: Equity-based lending

Minimum loan amount: $500,000

Niche/focus: Direct lender providing mortgage financing for commercialbased activities for developers, builders, business owners and real estate investors

Maximum LTV: 70% LTV; all deals evaluated on a case-by-case basis

Maximum loan amount: $20 million

519-755-6252

Minimum Beacon: Not required

Fee: 2%

Special features: Cross collateralization, interest reserves, revolving construction facilities

Terms: One to three years Products: First and second mortgages Rate types: Fixed and floating Property types: Development land,

www.mpamag.com/ca

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WE CHANGED OUR NAME, BUT...

OUR RATES ARE THE SAME

All applications are subject to credit approval and the properties meeting Lender credit criteria. Mortgage rates and terms are subject to change without notice.

Lending in the GVRD, Sea to Sky, Okanagan and Victoria

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LENDING GUIDE

ROMSPEN INVESTMENT CORPORATION romspen.com 800-494-0389

Property types: Industrial, commercial, multiple family, entitled land, retirement, mixed use, hotels, development projects, construction facilities

Rates: 7.75% and up

Purposes: Purchase, refinance, development, construction

Fees: From 2% of loan amount plus lender’s legal fees, disbursements and applicable taxes

Maximum amortization: Interest only; flexible amortization

Lending markets: Canada and the US Niche/focus: Urban centres (non-urban centres on a case-by-case basis)

Maximum LTV: 75% Products: Term, bridge, construction and revolving credit facilities

Minimum Beacon: n.a.

Customer type: Commercial borrowers

Terms: One to three years

Preferred loan amount: $5 million to $150 million

Mike Saba 778-822-0556 msaba@bancorpfinancial.com Mark Silverwood 607-764-5385 mark@bancorpfinancial.com

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LENDING GUIDE

STRIVE CAPITAL CORPORATION strivecapital.ca 833-256-0573

income, self-declared income, dividend income, investment income, rental income, spousal/child support income

Terms: One to five years fixed rate and five years ARM Rate types: Fixed and ARM

Lending markets: Ontario, British Columbia, Alberta, Saskatchewan, Nova Scotia, New Brunswick, Prince Edward Island, and Newfoundland and Labrador

Property types: One- to four-unit homes, including single-family, townhomes, condos, cottage properties and rural properties

Niche/focus: Prime insured/insurable product offerings with a keen focus on broker relationships and a flexible approach to file adjudication

Purposes: Financing for owner-occupier properties, two- to four-unit rental properties, vacation/second homes, bridge financing

Products: Purchase, transfer, small rental, second home, self-declared income, purchase plus improvements, new to Canada

Maximum LTV: 95% – owner-occupied purchase, transfer/switch; 90% – self-declared income; 80% – two- to four-unit rental purchase

Customer type: Prime

Minimum Beacon: 600 for all applicants, <640 for 95% LTV requires exception

Special features: Child Tax Benefit – children can be 15 years old at funding on a five-year term. Extended Parental Leave Income – 100% can be used to qualify deal with job letter. 15 + 15 prepayments with double-up available. Client portal: www.mystrivemortgage.ca

non-residents and new to Canada, as well as holding and operating companies

Rate type: Fixed rate with options for an open term

Property types: Residential owneroccupier or rental single-family detached, townhouses, duplexes, fourplexes and condominiums

Maximum amortization: Up to 35-year amortization on first mortgages; up to 30 years on second mortgages, and interest only considered on first mortgages up to 70%

Income sources: Salaried, hourly

Maximum amortization: 25 years Fees: None Minimum loan amount: 100,000 Maximum loan amount: 95% of the first $500,000, and 90% of the property value beyond $500,000

THREEPOINT CAPITAL threepointcapital.ca 800-979-2911 Lending markets: British Columbia, Alberta, Manitoba and Ontario Niche/focus: Creative solutions-based flexible lending on marketable residential properties in urban locations, for those who do not qualify for traditional lending. Tell us your client’s story and we’ll do our best to help

Purposes: Purchases, refinances, equity take-out, debt consolidation, and renovation projects Maximum LTV: Up to 75% LTV

Products: First and second mortgages

Minimum Beacon: None

Customer types: Individuals, including self-employed, stated income,

Terms: One- and two-year terms available

Fees: Our uDrive lending program allows you and your client to choose between no lender fee and a higher rate, or a lower rate and a 1% or 2% fee, depending on what best suits their individual needs Preferred loan amount: Maximum loan size of $1.5 million on a single property and $2.25 million inter alia

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LENDING GUIDE

UPTOWN FINANCIAL INC. uptownfinancial.ca

Income sources: Salary, hourly, commissioned, and business for self

905-738-6965 Lending market: Ontario Niche/focus: Direct lender providing alternative mortgage solutions in major urban areas across Ontario. With over 17 years of combined specialized loan expertise, we have built a comprehensive distribution system focused on owner- and non-owneroccupied residential and commercial real estate Products: First and second mortgages; residential, commercial and land financing. Bundle mortgages and bridge loans

Rate type: Fixed Maximum amortization: Interest only

Property types: Residential/ commercial within the GTA and other major urban areas and on a case-by-case basis for cottages and rural properties Purposes: Purchase, refinance, home renovations, land, or other types of real estate assets Maximum LTV: Residential up to 85% in urban markets; commercial – 70%; land – 70%; construction 70%

Fees: 1–3% on first mortgages; 3–6% on second mortgages; all fees are income, location, credit and security specific Minimum loan amount: $50,000 Maximum loan amount: Unlimited, upon review Special features: Prepaid mortgages, flexible terms, collateral charged mortgages

Minimum Beacon: No minimum Beacon required Terms: 6–24 months

Customer types: A, B or C borrowers

VWR CAPITAL CORP. vwrcapital.com 866-907-5407

Lending markets: BC, Alberta, Saskatchewan, Manitoba and Ontario

Property types: Single-family, townhouses, condos, row homes, serviced land, raw land, multi-family Purposes: Purchase or refinance, equity take-out, debt consolidation, CRA arrears, foreclosure rescue, etc.

Niche/focus: Residential

Rate type: Fixed Maximum amortization: Up to 35 years; interest-only mortgages available Fees: Starting at $750 for first mortgages; $500 for second and third mortgages

Maximum LTV: 75% Products: First, second and third mortgages Customer types: Individuals, holding companies, operating companies, non-residents and more

Minimum Beacon: None

Preferred loan amount: $25,000 to $2.5 million

Terms: One year – open mortgages available

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LENDING GUIDE

located in Ontario. We made the investment to review our business processes to ensure that we continue to meet and exceed industry expectations. VWR Capital Corp. also spent time on and continues to improve our business development managers’ ability to support brokers in new ways, including with up to date and expert knowledge of our lending appetite through regular touchpoints and easy-to-access lending guides. We focused on building out a full Business Development and Marketing department. The new department empowers the business development managers to make quick decisions and help our broker network structure deals.

Chris Baker, Capital West Mortgage:

to expand and grow, we’ll be moving to a larger space for our headquarters’ location in Calgary, Alberta.

Reid Quan, Breakwater Financial: I can only speak to the private lending sector and from what our company and counterparts that I’ve spoken with have faced, but for 2021, the main challenge we saw was quite a few private lenders slashing rates/fees to extreme lows to win deals. This was applicable to both first and second mortgages too. Because every private lender is not the exact same (some rely on deal volume, some are pure equity lenders, some rely on the quality of deal/margins, etc.), the overall sales and customer service approach was the main hurdle within this challenge to conquer. It was the most important aspect to winning deals for our company specifically. We held firm with our desired overall target return, max LTV, loan amounts, etc., and really focused on providing the best possible service to brokers, who knew what

we liked and fully understood our valueadds. This led to more repeat business with numerous brokers, and it grew our portfolio quickly, while achieving record numbers across the board.

Steven Lang, VWR Capital Corp.: In the past year, the challenges have been focused on interacting with brokers in many ways and many different places, including through Zoom, out for lunch instead of at the business office, and by text, to name a few. Even though the method of contact may change, we still have to maintain service standards and expectations. Another challenge facing the private lending industry has been the need to help educate brokers on how private lending can help their own business grow by providing a financing solution to clients that may have been overlooked in the past. We faced these challenges based on one of our most important attributes – agility. We listened to our partners and hired a business development manager physically

Historically low inventory levels and increased buyer demand made for a busy 2021. Increased competition in the alternative lending space, combined with lender liquidity, led to downward pressure on interest rates. Capital West Mortgage made a conscious effort to provide exceptional customer service to our referral sources. We put our best foot forward in terms of pricing and deal structure to ensure our broker partners had the best product to offer their clients.

Eric Larocque, Community Trust: These have certainly been some very turbulent times, and that goes for all of us. Even though we’re all hopeful of being at the tail end of this now, things continue to shift and adapt all around us at a pace that has probably never been seen before. We now suddenly face a whole new period of uncertainty with the conflict in Ukraine, and at this point it’s impossible to predict how profound and far-reaching the impact of that will prove to be. These are obviously quite extreme examples, but they have reminded us all that you never really know what else might be around the corner. All these things will naturally have a ripple effect on the economy, affecting Canadians in a variety of different ways, not

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