MPAMAG.COM/CA 2022GUIDELENDING ALTERNATIVESSEEKING Lenders that adapt and evolve are providing a lifeline for borrowers in search of solutions
VISIT US ONLINE AT VWRCAPITAL.COM -Equity Based Lending Solutions ■ 1st , 2nd , & 3rd Mortgages ■ Loans up to $2,500,000 ■ No Income Qualification ■ No Minimum Beacon Scores ■ Purchase, Refinance, ETO ■ Up to 75% Loan to Value ■ Single Family Detached, Condos, LendingMulti-Family,Townhouses,ServicedLand,andRawLand.inBritishColumbia, Alberta, Saskatchewan, Manitoba & Ontario Jennifer Peters Business Development Manager BC @ jennifer@vwrcapital.com 604-803-7430 VWR CAPITAL CORP. Paula Hutton Business Development Manager Prairies @ paula@vwrcapital.com 780-370-7430 PratheesanRathnapala BusinessDevelopmentManager-ON @ pratheesan@vwrcapital.com 416-629-2219 Find us on Filogix, Velocity, and Lendesk or by email at deals@vwrcapital.com or call us at 1-866-907-5407
Eric Larocque Managing director, CommunityTrust
Todd Poberznick Vice president of national sales, CMI
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Steven Lang: We have, and are, approaching this market with a continued focus on solid market data within our preferred appraisal reports; however, we also utilize other data sources in order to see market shifts, popu lation movements, and neighbourhood
What’s next for Canada’s alternative lending space?
Steven Lang Nationalmanager,sales
borrowing environment that’s markedly different from that which prevailed in previous years.
Jared Morrison President and chiefofficer,operating Alta West Capital
What are Canada’s leading alternative lenders focusing on in that climate? CMP spoke to some of the country’s most prom inent lending executives to get their view on the lay of the land at present – and what could be coming down the track as the space continues to develop in the future.
As the mortgage market continues to shift, alternative lending is evolving in line with those changing circumstances
That’s not to say that opportunity has dried up; some buyers are taking advantage of lower prices and fewer competing offers to snap up a property, and many home owners are seeking to refinance amid a
MEET THE EXPERTS
Loren Hawkins National manager, broker relations, ThreePointCapital
AFTER TWO years of red-hot activity, Canada’s mortgage and housing markets have cooled dramatically in recent months as interest rates creep upwards and home buying slows from its frenetic pace.
Mike Spero Chiefofficer,operating CMI
What has been top of mind for your company in its approach to the market this year?
Rena Malkah President, CYR Funding
VWR
achievable for Canadians by providing brokers with flexible Alt-A mortgage solu tions for their clients is what continues to define our approach the most, and this all stems from our “We Care” philosophy.
However, one thing that remains constant is that everything we do is shaped by our dedication to providing superior service that truly demonstrates how much we care about the success of our partners and helping them gain market share. Our commitment to helping make homeownership more
Eric Larocque: If there’s anything that this industry has taught us, it’s that change is inevitable. That’s why we’re constantly evalu ating our approach to ensure we remain aligned with the needs of our brokers, our customers and our employees.
Rena Malkah: CYR Funding’s approach to the changing real estate and financing market is to become more diversified into the US market, with its sister company, CYR Funding of Florida, being able to do land, construction, commercial and investment financing in any state. Diversification and a larger market is our new approach.
Jared Morrison: Number one has to be the effect on the business of the ever-evolving real estate market. The supporting funda mentals of the property market, like employ ment and immigration, are still strong and would typically drive sales. In contrast, however, these are meeting with strong headwinds on the affordability front from previous price escalation, rapidly rising
“We have kept an open and agile mind to ensure we can adapt and shift when needed, as – guaranteed –there will be new trends”
back due to concerns over values being softer and the ability of borrowers to qualify with the higher interest rates.
From the people we hire to our prod ucts and services, and most importantly the way we offer them to help Canadians become much more financially successful and secure, this is our guiding principle that shapes everything we do.
interest rates, ever-tightening mortgage rules, inflation, and lingering supply chain issues. This conflict makes for an uncertain year as Canadians adjust to this new reality.
Loren Hawkins: Property values. As we all know, over the last 12 months we’ve seen a tremendous uptick in values. However, with the recent rate increases and the softening
Steven Lang, VWR
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trends within our current market service areas to help make sound decisions. Basically, we need to be data informed in addition to our typical underwriting process. Our approach at VWR Capital has always been a property-first focus, and we will continue to market decisions on this basis.
We have also put more emphasis on social media and private funding as the financial institutions and MICs have scaled
Mike Spero and Todd Poberznick: 2022 was a year of exceptional growth for CMI. We increased distribution through the expan sion of our broker networks, as well as increasing our reach nationally. We became licensed in Atlantic Canada and Quebec earlier this year, and we continue to scale our presence in markets from coast to coast.
Mike Spero and Todd Poberznick: Between interest rate increases and correc tions in real estate prices, 2022 has been a year of shocks to the market. These condi tions have made it significantly more difficult to qualify for a mortgage. Brokers have needed to respond and adapt to these forces as more of their clients turn to the private space seeking alternatives.
Are there any trends you’ve been noticing that have set 2022 apart from previous years?
Steven Lang: 2022 was a year of mortgage demand at levels that have not been seen in recent memory in many standard urban city markets. With inflation high and ultimately interest rates moving up at a quicker pace than we have seen in years, enquiries on rates, renewal fees, and engagement from brokers looking for alternative solutions for their clients has been the trend year to date. We have kept an open and agile mind to ensure we can adapt and shift when needed, as – guaranteed – there will be new trends, unexpected shifts in markets, and demand shifts throughout the coming months.
Eric Larocque: The most obvious trend we have seen so far this year is the pace at which interest rates are rising. The main theme we have seen resulting from this is
Rena Malkah, CYR Funding
Unless there is a clear and guaranteed exit, pushing the maximum LTV (ie over 75%) with a decreasing real estate market can turn a situation bad quickly. As lenders continually adjust their LTVs and qualifi cation criteria, if a borrower is put into an MIC product at 75% or 80% and property values are not there to support a refinance out, then borrowers’ only options are to struggle to keep afloat or sell the property.
Loren Hawkins: Refinances and payouts have been a major factor this year. For example, we are down 22% in payouts versus the first seven months of this year, which affects cash management. As it should be all the time, during these times especially, the exit strategy should be top of mind for brokers and agents when looking at financing a client with an MIC.
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“Diversification and a larger market is our new approach. We have also put more emphasis on social media and private funding”
real estate market, keeping up with property values is a key factor for us. We constantly stay connected with our appraisal partners to ensure we have a pulse on what is happening in each of the markets we lend in across BC, Alberta, Manitoba, and Ontario.
navigate through them by finding the right solutions for their clients.
Rena Malkah: Our government has been printing money and spending money like it’s going out of style, creating inflation and making it more difficult for Canadians
Mike Spero and Todd Poberznick, CMI
4 www.mpamag.com/ca LENDING GUIDE
affordability, especially when viewed in tandem with the significant increase in cost-of-living expenses being seen on a broader scale. Consumers are understand ably very concerned about this, and it hits even harder for those with a variable rate mortgage, or a mortgage that will be up for renewal in the near future. We see it as our responsibility to stay ahead of these types of situations, and help our brokers
“If a borrower doesn’t meet traditional bank lending guidelines, it’s critical that brokers are equipped to provide viable alternatives”
However, this is just one sector where the mortgage business is quickly changing. The pandemic sped up the pace of technological change. Think of how far video calls, digital document signing and virtual meetings have come. Throw in staffing requirements and things like the work-from-home revolution. It’s a different business world today than at the start of 2020. Whether pricing, market strategy or technology, today’s decisions can be outdated tomorrow.
Jared Morrison: The pace of change is unlike anything I’ve seen. As above, with inflation running at multi-decade highs, we see aggressive action from the Bank of Canada to bring it back within the target range. The rate rises in Canada are beyond what has been seen over the last 30 years.
It’s time to get comfortable with change. I don’t see things slowing down. The pace of change today is likely the slowest it will be for the rest of your career.
Loren Hawkins: For the most part, lenders in the MIC sector have a common thread:
The decision to not produce our own fuel and shut down pipelines has caused massive hikes in gas prices, which not only affect the consumer at the gas pump but affect all areas where fuel is used to farm, manufacture, and deliver goods.
Eric Larocque: As a lender, we are always here, ready to help our partners as much as we possibly can. Our goal is to make sure all their applications go smoothly and quickly, that their clients are kept happy from start to finish, and that the process of working together is made as efficient and seamless as possible.
ments. Take time to get to know lenders as they would in the A and B spaces. It’s key!
Jared Morrison: Mortgage brokers must set expectations for their clients when putting them into an MIC or private lender. In the past, the time to exit could be within a year, especially in a rising property market. You could graduate your client to an A or B lender after a year of good payment history at an MIC. However, depending on the scenario today, it may take one to two years or possibly longer. The customer needs to feel comfortable paying MIC/private interest rates for a little longer than previously. In the right situation, the client could consider longer-term MIC products. More than ever, brokers should seek out well-capitalized lenders who will likely offer a renewal if required.
Brokers with private lending expertise are not only in a better position to help their clients by being able to offer a wider range of
Mike Spero and Todd Poberznick: Recent market conditions have demon strated the importance of brokers having a wide range of financing options available. If a borrower doesn’t meet traditional bank lending guidelines, it’s critical that brokers
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are knowledgeable and equipped to provide viable alternatives. Without them, borrowers could find themselves without options and in dire circumstances as a result.
What do you feel mortgage brokers should be focusing on in their approach to your space/sector in the future?
“If there’s anything that this industry has taught us, it’s that change is inevitable. That’s why we’re constantly evaluating our approach”
to afford their mortgages with the higher prices of food and other products.
lending options, but they are also equipped to help a wider range of borrowers. Brokers can no longer rely on simply seeking out the lowest rate. They need to ensure the lender can provide the service and solutions they need to appropriately help their clients.
to assist brokers, agents and their clients when they cannot find a fit in the other spaces. However, each has their own approach to how they look at applications. Each MIC provides different LTVs, takes a different spin on locations, has different programs, and requires a variety of docu
Eric Larocque, Community Trust
Steven Lang: Brokers all approach their business in various ways; however, what is common is relationship and service are a key factor in their continued success. An area of focus would be to maintain know ledge of market trends, know your lenders’ products, terms and conditions, and pricing, and advise clients of the best solution for their current situation all the way through to their goals in the future. Having more than one option for your clients instead of rushing a deal last minute will provide both brokers and their clients with peace of mind through closing.
No two lenders are the same, and each company in the space will have a different source of and therefore cost of capital. On top of this, each company will have a unique marketing and pricing strategy. However, any way you want to cut it, the cost of capital is rising quickly. Rates and fees are rising to meet these increased costs.
These rising prices have a noticeable effect on the client. Perhaps unseen in these early days will be the possible flow-on
Jared Morrison, Alta West Capital
“It’s a different business world than at the start of 2020. Whether pricing, market strategy or technology, today’s decisions can be outdated tomorrow”
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What are the main roadblocks or hurdles you see ahead in the Jaredsector?Morrison:
However, this is very much a two-way street, especially in the Alt-A space where more attention is needed to individual circumstances. We look at every application through a different lens, which is essential in being able to find the right solutions. So, the more brokers can be on board with this same approach, the more effective we can be for Thisthem.iswhy we encourage our partners to pick up the phone and give us the whole story, with as much detail as possible. To get the advice they need from us, learn more about our various niches, and find out what they can do to make their deal happen. Making the time for this type of dialogue in the beginning can make all the difference to how it all plays out from there.
Rena Malkah: Mortgage brokers should be focusing on getting the full story on every deal and verifying all the information as there is a lot of misrepresentation these days. We should focus on being professional, putting together complete packages, and doing everything possible to ensure the success of a transaction.
Is there anything else you’d like to add?
Rena Malkah: It appears that the interest rates are going to rise further and perhaps values will drop further, which is a major hurdle. Lack of confidence in our govern ment is a serious problem.
Loren Hawkins: As the Bank of Canada continues to adjust the overnight rates to assist with inflation, fund management will continue to be a key focus for the MIC sector. Another factor will be the real estate market, which will trickle down and affect what LTVs lenders in this space will offer for the remainder of the year and into 2023.
Steven Lang: The roadblocks and hurdles that may come up in the private lending sector are not new. However, the speed at which lenders can update processes, improve technology, and communicate with brokers is key. Although the market through the spring of 2022 was very high, brokers still expected private lenders to
impact on the lenders themselves. This much change and rapid price escalation won’t pass without disrupting the sector. We’ve seen numerous product changes, lending criteria, and funding timelines from the MIC/private market. I expect to see more change, including possible consoli dation within the space.
Steven Lang: Keeping up with the changes within the private lending sector can be a challenge for brokers. At VWR we maintain our basic and low pricing structure so brokers can be confident in their approach with clients. Our business development managers are also very advanced in their underwriting knowledge
Affordability will continue to be front and centre as renewal rates have increased significantly, therefore affecting borrowers’ ability to cover mortgage payments.
turn around a deal very quickly and have continual communication throughout theWithprocess.employee shortages in every industry, the challenge or hurdle now is to find a solution/system to deal with that level of volume and still deliver on broker expect ations, [to maintain] our service standards all with the same products and pricing they are used to.
Mike Spero and Todd Poberznick: The near-term expectation is for further interest rate increases, which may lead to further declines in real estate prices. The mortgage market needs to get used to this ‘new normal’ and adapt accordingly. Once the industry goes through this transitory period, the market can begin to grow again.
Jared Morrison: It’s not all doom and gloom. This moment in time creates an opportunity for many. A large segment of the population looking to purchase a home in the last couple of years simply could not. Some lost out in bidding wars, and others were simply priced out of the market. As I mentioned, there is still a lack of supply, employment is strong, and hundreds of
thousands of new immigrants are coming to Canada yearly. The higher interest rates have taken the froth off the market, but the more affordable prices have opened the
door to homeownership for some. For every transaction, we still need one seller and one buyer, and typically that buyer needs a mortgage.
and are here to help you structure a deal to ensure the smoothest underwriting process in the most efficient time.
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“Each MIC provides different LTVs, takes a different spin on locations, has different programs ... Take time to get to know lenders” Loren Hawkins, ThreePoint Capital
important for brokers to note that private lending is designed for different scen arios than conventional lending, and that private options are an excellent choice for borrowers who may not currently qualify
“A private mortgage can be a valuable lifeline to borrowers struggling to qualify
That’s the view of Canadian Mortgages Inc. (CMI) director of operations Taylor Lewis, who tells CMP that private lenders not being subject to the same regulations as banks means they can be nimbler and more flexible in their application of lending criteria and solutions.
Conventional lenders, he explains, usually have extremely rigid lending criteria, with borrowers having to fit within strict qualifying parameters and even stricter underwriting guidelines.
for conventional lending in the current economic environment,” Lewis says.
“By design, private loans are intended as a short-term solution to solve an immediate problem or need, with a built-in plan to
Canadian Mortgages Inc. on how private lenders can prove the most responsive and appropriate option for borrowers in a rapidly shifting mortgage environment
“CMI is a partner with the mortgage broker. We’re here to provide advice and structure deals so that we deliver the best possible solution based on the borrow er’s unique situation, while considering market conditions in context as well,” he says.Ina
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“Private lending, on the other hand, can be viewed as a spectrum,” he says. “CMI, for instance, has discretion to assess every borrower’s unique circumstances, including the subject property and loca tion, to make a lending decision and to customize the terms of the borrowing solution, including the rate.”
Rules also govern the types of employ ment, debt ratios, income and Beacon scores of borrowers that banks will consider, as well as property types, location and loan-to-value ratios.
shifting housing market like the one being experienced in 2022, it’s
“CMI is a partner with the mortgage broker. We’re here to provide advice and structure deals so that we deliver the best possible solution based on the borrower’s unique situation, while considering market conditions in context as well” Taylor Lewis, CMI
WHEN IT comes to the mortgage industry, private lenders can often be a more respon sive and flexible option for Canadian borrowers in challenging and changing times than banks and credit unions.
conventional deals, Lewis adds, with broker-lender collaboration a key differ entiator on the private side.
under traditional lending guidelines, are out of work, have poor credit history or face cash flow challenges, Lewis says.
Brokers being knowledgeable about viable alternative lending solutions means they can provide optimum advice and guidance to borrowers who may find themselves unable to meet the banks’ lending criteria and facing dire circum stances as a result.
There are vast differences between the underwriting process for private and
Meeting the needs of a changing market
CMI is expanding its geographic reach, having become licensed in Quebec and Atlantic Canada, while also diversifying its funding sources to expand its product shelf and broaden its base of borrowers and prospective clients.
priately reflect prevailing conditions.
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CMI’s focus
Amid those market changes in 2022, Lewis says CMI has been focusing on actively monitoring conditions and ensuring that its lending criteria appro
“A private mortgage should be viewed as a valuable tool in the context of a borrower’s longer-term financial picture.”
He says the company has doubled down on its strong due diligence and underwriting protocols to manage the quality of its mortgage originations, with its “dynamic” business model helping it adapt smoothly to changing conditions and a cooler climate.
Other new developments include the
transition back to traditional lenders.
For brokers, the benefits of this type of lending are obvious, not only in terms of the wider range of loan options they are able to offer but also because it allows them to expand their businesses and help a wider range of customers, Lewis says. That’s especially significant as a source of growth in a transitory and rapidly changing market.
“This expansion will allow us to widen our appeal to the brokerage community by being able to provide additional options for their borrowers,” Lewis adds.
relaunch of the company’s revamped websites and technological enhancements to better represent its product offerings. The first site for CMI MIC Funds recently debuted, and additional launches are planned throughout the year for CMI’s Mortgage Investment program and its brokerCMIsite.is also highly attuned to the changing needs of borrowers during a cost-of-living crisis and rising rate environment, with Lewis explaining that the company has the ability to customize solutions to fit a range of needs and circumstances.Thoseoptions could include a second mortgage, allowing homeowners to leverage home equity to consolidate debts and provide interest savings and cash flow
10 www.mpamag.com/ca LENDING GUIDE
The company can also match the term to maturity on a second mortgage with an existing first mortgage in the hope that the borrower is re-employed or in
consideration for brokers is that not all private lenders are created equal.
Some of the most important things to keep in mind when choosing a private lender are the size, age, industry reputa tion and track record of the business, as well as its commitment to ethical lending practices, fee transparency, the borrower segment served, and whether their focus is merely regional.
When it comes to choosing a private lending solution, Lewis says the most essential
“It’s vital for brokers to do their due diligence when selecting a partner,” he says. “The market is heavily fragmented with hundreds of different lenders. Many differences set these players apart. For example, some will focus on a particular segment of borrower or geographic region.”
“CMI has discretion to assess every borrower’s unique circumstances, including the subject property and location, to make a lending decision and to customize the terms of the borrowing solution, including the rate” Taylor Lewis, CMI
For brokers, technology is also key –how easy it is to submit deals and ensure a quick turnaround – as well as service level and the depth of the company’s product shelf and flexibility of its solutions.
What brokers should know about private lending
That’sforeclosure.something that sets the company apart from more conventional solutions. “Most traditional lenders like banks won’t offer second mortgages, except in the form of a home equity line of credit,” Lewis says. “That type of revolving facility is not the right fit for a borrower looking to eliminate debts of this type.”
Ultimately, brokers and their clients can win by working with a private lender that’s established, reliable and flexible, Lewis says, but it’s important that brokers should also be aware of whether the lender has its own sales force and deals with consumers directly.
relief. That could help stave off collections or bankruptcy and help them repair their credit in the long run, Lewis says, as well as potentially providing badly needed funds to bring a first mortgage up to date to avoid
Other solutions offered by CMI for borrowers who are experiencing cash flow issues include flexible repayment terms such as interest-only and prepaid mort gages, in addition to term customization and funds for short-term needs.
a better overall financial state at that time, Lewis says. That would allow the borrower to refinance and consolidate the first and second mortgages together at a lower rate – or renew the second private mortgage if that isn’t possible.
“They could be competing with the lender for the client,” he advises. “CMI only works with mortgage brokers and doesn’t compete for the client. The broker always maintains the client relationship.”
Minimum loan amount: $30,000
Maximum loan amount: $5,000,000
Customer types: Business for self, new to Canada, bruised or damaged credit, etc.
Purposes: Purchase, refinance, bridge financing
Terms: 12 months closed is standard (open to longer/shorter and can be flexible on structure)
Customer types: A-, B- or C-level credit. Salaried; self-employed; investors with portfolios and available equity
Niche/focus: Providing alternative capital funding using an equity-based lending approach on all refinances/ purchases of residential properties
Minimum Beacon: None
Terms: Six-month, one-year, or two-year terms
Rates: 8–9% (typical)
Maximum amortization: Interest-only is standard; principal and interest is possible and deal-specific
Income sources: Articles of
Minimum Beacon: 550
ALTA WEST CAPITAL
Maximum amortization: Interest-only or up to 35 years
Products: Up to 75% LTV for first and second mortgages
Lending markets: Alberta, British Columbia, Ontario
Maximum LTV: 75%
BREAKWATER FINANCIAL LIMITED 905-806-2292breakwaterfinancial.ca
Maximum loan amount: First mortgage up to $1.50 million; on over $1.25 million there is a 35bps premium on lender fee. Second mortgage up to $500,000; on over $300,000 there is a 50bps premium on lender fee, and maximum LTV is 75%
Special features: Express products offer a 3% commitment fee split 50/50; Broker Loyalty Program – earn up to 15bps, minimum of two deals funded in the quarter, $1,500 bonus rewarded to top performers of the year that have funded 12 or more deals in the calendar year
Income sources: Salaried; self-employed; income from existing investment properties
Property types: All residential homes
Minimum loan amount: $250,000
Fees: Lender fees as low as 1.50%
Rate type: As low as 8.99%
incorporation, paystubs, stated income letter
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. Able to fund within three to five business days if warranted
Products: Primarily first mortgages for residential end users and investors, commercial investors and owner-occupied borrowers, and borrowers looking to use existing equity in other owned properties for blanket mortgage purposes
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Niche/focus: Residential and commercial first mortgages within the GTA, SWO and Niagara regions
Lending market: Southern Ontario
Maximum LTV: 65%
Fees: 2–3% (typical)
Property types: Single-family residential, multi-family residential, mixed use, industrial
Purposes: Purchase, refinance, ETO, bridge loans
888-554-9075awcapital.ca
Income sources: All income types considered: salary, commission, business for self, freelance and retired
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• Submissions can be made via Expert, Velocity or Lendesk
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
• Fully open options available
mortgages up to 80% LTV with competitive rates. Known for ethical lending practices and exceptionally fast service
GROW. uDrive@threepointcapital.cathreepointcapital.ca
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• Lending in BC, AB, MB and ON
NOW YOU’RE IN THE DRIVER’S SEAT. 888-465-8584thecmigroup.ca
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.
Lending markets: Ontario, Quebec, British Columbia, Alberta, Manitoba and Atlantic Canada
Products: First and second mortgages, short-term and bridge loans, equity mortgages, bundle mortgages and renovation financing
Customer types: A-, B- and C-level credit.
• Residential 1st and 2nd mortgages
Minimum Beacon: None
Property types: One- to four-unit owner-occupied, rentals, condos and cottages. No restrictions on location. Remote and rural properties considered on a case-by-case basis
Purposes: Financing available for purchases, business working capital, debt consolidation, bridge loans, investment purposes, tax or mortgage
• Maximum LTV of 75%
Terms: 3, 6, 9, and 12 months. Custom terms are available
Minimum loan amount: $50,000 on first mortgages, $25,000 on second mortgages
Maximum LTV: Up to 75% on first mortgages and 80% on second mortgages in major urban and suburban markets; up to 70% in smaller cities or townships. Blanket mortgages are considered on a case-by-case basis
arrears, pandemic relief, home renovations and more
Special features: No hidden application fees; early repayment penalties of 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 loans available.
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Maximum amortization: Up to 40 years or interest only
Fees: 2–3.5% on first mortgages, 3–6% on second mortgages. Fees are dependent on location, income, credit and security
Rate type: Fixed
Maximum loan amount: Up to $1.5 million in urban markets
Maximum amortization: Interest only or 30-year maximum
Terms: One, two, three and five years
Minimum Beacon: None; credit to be reviewed on a case-by-case basis
Rate type: Fixed or floating
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
888-649-1169communitytrust.com/wecare
Niche/focus: Alt-A lending
Purpose: Purchase, refinance, equity take-out, bridge and inter alia
Lending markets: Ontario and British Columbia
WEST MORTGAGE
Niche/focus: Niche/focus: Commonsense lending and a range of products from two diverse mortgage portfolios
Maximum LTV: 80%
Minimum Beacon: 500 FICO score
previous bankruptcies, collections and judgments
COMMUNITY TRUST
Property type: Residential properties, commercial properties and land
Terms: Pacifica
Blueshore NT $100,000 to $4 million
CAPITAL INC.
Products: First and second mortgages
Purpose: Financing available to purchase or refinance a principal, secondary or investment property
Maximum LTV: 75%
Fees: 2%, typically split with the broker
Property types: Single-family homes, row and townhouses, condo/strata, well and septic, multiunit homes
Preferred loan amount: Pacifica $100,000 minimum No maximum
Products: Conventional mortgages, non-conforming mortgages, second mortgages, investment properties, business for self (BFS), home equity line of credit (HELOC)
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
604-365-4244capitalwest.ca
Lending markets: BC – Greater Vancouver, Sea to Sky, Okanagan, Victoria
Fee: 1%. No-lender-fee mortgages also available
14 www.mpamag.com/ca LENDING GUIDE Brought to you by
Rate type: Fixed
Minimum loan amount: $100,000
Maximum loan amount: No listed maximum mortgage amount
Non-traditional One- to five-year closed terms One-year open term
One-year open term
Maximum amortization: 35 years
ALBERTA NPX,thealternativesolutionpoweredbyMERIXFinancial,offersAlberta:CompetitiveratesCompetitiveratesLendingareaincludessmallercommunitiesgreaterthan30kLendingareaincludessmallercommunitiesgreaterthan30kRentaloffsetsusedonowner-occupiedbasementsuitesRentaloffsetsusedonowner-occupiedbasementsuitesHoldingcompaniesacceptedHoldingcompaniesaccepted ALBERTA NPX now lends in Ontario, British Columbia and Alberta. For details or to get signed up, email NPXSalesDesk@merixfinancial.com NPX, the alternative solution powered by MERIX Financial, offers Alberta:
16 www.mpamag.com/ca LENDING GUIDE Brought to you by CYR FUNDING INC. (C)www.cyrfunding.com647-838-5061 Lending markets: Ontario and USA Niche/focus: Land, construction, residential, commercial Products: First/second Customer types: Owner, builder, developer, purchaser Income sources: Any source Property types: All types Purpose: Any purpose Maximum LTV: 65–85% Minimum Beacon: None Terms: 1–10 years Rate types: Interest only or amortized Maximum amortization: 30 Fees: 1–3% Minimum loan amount: $100,000 Maximum loan amount: $200 million Special features: Experienced since 1974 Ros - Cole said it’s ok not to include the code and name
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. 494
800
Get the green light without the red tape.
Investment Corporation
0389 | romspen.com License # 10172
Preferred loan amount: $3–$9 million
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
Property type: Commercial and residential first mortgages
Maximum amortization: n.a.
Term: One to two years
Customer type: Builders and developers, private investors, etc.
Rate type: Interest only
Niche/focus: Commercial bridge lending, industrial, land, incomeproducing, etc.
Maximum LTV: 80%
Minimum Beacon: None
Fee: 2%
18 www.mpamag.com/ca LENDING GUIDE Brought to you by FIRST SOURCE MORTGAGE CORPORATION 416-221-2238firstsourcemortgage.ca
Products: First mortgages – bridge loans
Lending market: Southern Ontario
Residential First and Second Mortgages -SpecialOfficeApartmentCommercialConstructionLandInvestmentBuildingsandMedicalBuildingsPurposePropertiesGasStations,Hotels,Churches, Mosques, Retirement and Nursing Homes, Self-Storage, Student Residences and more Funds Also Available for U.S. Call or send a package for a quote: CYR Funding Inc. #11681 Attention: Rena Malkah 905-731-1111 Ex 229 (b) 647-838-5061 rena@cyrfunding.com(c)
Optimize your productivity by constantly looking for innovative ways to make working with us faster and easier
Because we care. About our partners, their clients, and the financial security of Canadians. To learn more, contact your BDM or visit communitytrust.com/wecare.
Contribute to your success by anticipating the changing needs of the Canadian mortgage landscape
Meet your clients' needs by providing a wider range of guidelines and policies that are unique and flexible
Why do we do what we do?
Close your deals sooner by giving you direct access to our team of experts for quicker answers and decisions
Maximum loan amount: $1.5 million
NPX (A PRODUCT OF MERIX FINANCIAL) 888-637-4920www.merixfinancial.com
Customer types: All income considered, including salary, commission, BFS, stated income, retired
Terms: 6–24 months (typically 12 or less)
Special features: Contract rate qualification, extended ratios, extended amortization
Terms: 1-, 2-, 3- or 5-year terms
Minimum Beacon: None
Property types: Residential, multi-unit, townhouses/semis/condos, cottages, rural case-by-case
Products: First and second mortgages, bridge financing, ETO, construction
Minimum Beacon: 600
20 www.mpamag.com/ca LENDING GUIDE Brought to you by GRAYSBROOK CAPITAL LTD 647-343-2670506-380-4950graysbrookcapital.ca(Atlantic)(Ontario)
Income sources: Verifiable or stated (with bank statements)
Maximum amortization: 35
Special features: Prepayment holdback, blanket mortgages, multi-unit construction
Niche/focus: NPX is an innovative, solution-based, full-suite alternative product focusing on borrowers that do not fit traditional lending guidelines or need more to be considered than just credit. NPX uses different options and strategies for qualifying customers (including, in some provinces, contract rates rather than the stress test)
Maximum LTV: 80%
loans, commercial loans
Minimum loan amount: $25,000
Maximum loan amount: $3 million
Purposes: Purchases and refinances. Refinance purposes include debt consolidation, paying off CRA arrears/ consumer proposals, investments, and/or equity take-outs
Fees: 0–1.75%
Maximum LTV: 75% urban
Rate types: Fixed and ARM
Lending markets: Ontario, Alberta and British Columbia – major urban centres
Purposes: Purchases, refi, consolidation, renovations, cash flow
Lending markets: Atlantic Canada (NS, NB, NL, PE) and Ontario
Fees: 2–4% on first, 2–6% on second, depending on credit, location, security
Maximum amortization: Interest only
Minimum loan amount: $100,000
Customer types: Self-employed, non-traditional income, bruised credit, as well as customers who satisfy prime lending criteria but need to qualify for more
Niche/focus: Graysbrook Capital specializes in providing short-term financing solutions to its clients. As equity lenders, we provide quick funds for clients who require bridge financing, or want to consolidate debt, build a new home or do home renovations; or who simply need cash flow
Rate type: Fixed
Property types: SFD, townhomes, condos, multi-units up to four. Rural properties considered case-by-case with reduced LTVs
Products: First mortgages: purchases and refinances. Bridge financing is available
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 COMMERCIALYOURDEALNEEDSTHERIGHTLENDER... 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)FIRST SOURCE MORTGAGE CORPORATION PRINCIPLE BROKER (LICENSE # 10434)
Income source: n.a.
Maximum amortization: Interest only; flexible amortization
ROMSPEN INVESTMENT CORPORATION
Minimum Beacon: Not required
Property type: Industrial, commercial, multiple family, entitled land, retirement, mixed use, hotels, development projects, construction facilities
Terms: 1–3 years
22 www.mpamag.com/ca LENDING GUIDE Brought to you by
Minimum loan amount: $500,000
Terms: 2 months to 3 years
Lending markets: Canada and the US
Maximum amortization: Interest only
Maximum LTV: 70% LTV; all deals are evaluated on a case-by-case basis
Fees: 2% lender fee
Purpose: Equity-based lending
Rate types: Fixed and floating
RECIPROCAL OPPORTUNITIES INC.
Purpose: Purchase, refinance, development, construction
• 65% LTV/75% LTC for construction
Products: First and second mortgages
Customer type: Commercial borrowers
Maximum LTV: Typically up-to 65% LTV for land loans
Fees: From 2% of loan amount plus lender’s legal fees, disbursements and applicable taxes
Preferred loan amount: $10 million–$150 million+
519-755-6252roigroup.ca
Niche/focus: Direct lender providing mortgage financing for commercialbased activities for developers, builders, business owners and real estate investors
Property types: Development land, construction projects, industrial, commercial, rental properties, special purpose properties
Products: Term, bridge, construction and revolving credit facilities
Lending markets: Ontario
800-494-0389romspen.com
Minimum Beacon: n.a.
Rates: 7.75% and up
Niche/focus: Urban centres (non-urban centres on a case-by-case basis)
Customer type: n.a.
Maximum loan amount: $20 million
Special features: Crosscollateralization, interest reserves, revolving construction facilities
•loansUpto 75% LTV on income-producing properties
Close Quickly When You Need To. Let’s partner up and make a difference. Mortgage Brokerage License 12633 | Mortgage Admin License 12634 Mortgages for Every Stage • Fast approvals and flexible terms • Quick and responsive underwriting • Express fee split product • 1st & 2nd mortgages • Earn more with our Broker Loyalty Program Alta West Capital provides mortgage financing for those who do not meet traditional lending guidelines. We also offer unique investment opportunities to help Canadians fulfill their financial goals. Our team takes pride in providing alternative financing that puts Canadians into homes.
Customer types: Individuals, holding companies, operating companies, non-residents and more
Income sources: None
Maximum amortization: Up to 35 years; interest-only mortgages available
24 www.mpamag.com/ca LENDING GUIDE Brought to you by THREEPOINT CAPITAL 800-979-2911www.threepointcapital.ca
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
open term
Maximum amortization: Up to 35 years amortization on first mortgages; up to 30 years on second mortgages, and interest-only is considered on first mortgages up to 70%
Minimum Beacon: None
Lending markets: British Columbia, Alberta, Manitoba and Ontario
Purposes: Purchase or refinance, equity take-out, debt consolidation, foreclosure rescue and more
Maximum loan amount: $1.5m on a single property and $2.25m inter alia
Maximum loan amount: $2.5m
Rate type: Fixed rate with options for an
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 the client’s individual needs
Minimum loan amount: $50,000
Property types: Single-family, townhouses, condos, row homes, serviced land, raw land, multi-family
Products: First and second mortgages
Products: First, second and third mortgages
Purposes: Purchases, refinances, equity take-out, debt consolidation, and renovation projects.
Term: 1 year. Renewals offered to borrowers in good standing with a fully transparent renewal process that provides peace of mind
Maximum LTV: Up to 75% Minimum Beacon: 500
Rate type: Fixed
VWR CAPITAL CORP. 866-907-5407vwrcapital.com
Special features: n.a.
Niche/focus: Residential private mortgages
Property types: Residential owneroccupied or rental, single-family detached, townhouses, duplexes, fourplexes and condominiums
Customer types: Private individuals, non-residents and those new to Canada, as well as holding and operating companies (with personal guarantees of all directors)
Income sources: Hourly and salaried
Maximum LTV: 75%
Lending markets: British Columbia, Alberta, Saskatchewan, Manitoba, Ontario
Special features: Basic and low fee structure with one year closed renewals at only $200. Whether it’s an open or closed 1-year term, the rate is the same! Owner-occupied or rentals considered with same criteria
Minimum loan amount: $50,000
Terms: 1 year, open or closed
Fees: Starting at $750 for first mortgages; $500 for second or third mortgages
employees, self-employed, stated income and retirement income are accepted, subject to overall comfort on ability to pay
OFFER YOUR CLIENT A PROGRESSIVE APPROACH TO REAL ESTATE LENDING All applications are subject to credit approval and the properties meeting Lender credit criteria. Mortgage rates and terms are subject to change without notice. Visit us at capitalwest.ca/ald EASY. FAST. SIMPLE. Capital West is the manager for Pacifica Mortgage Investment Corporation SUBMIT YOUR DEALS, TODAY apply@capitalwest.ca STARTINGRATESAT +1.5%PRIME
Offering custom solutions tailored to your clients’ needs: We’ve put more than $1 Billion in private mortgage funds in the hands of Canadian homeowners since 2015. Partner with Canada’s premier private mortgage lender We are proud to serve mortgage brokers with the industry’s most innovative and extensive private mortgage financing solutions. We lend across Canada on all types of owner occupied, rental and mixed-use residential properties. canadianlending.ca/brokersinfo@canadianlending.ca|(888)465-8584 9 1st Mortgages 9 2nd & 3rd Mortgages 9 Bundle Mortgages 9 Bridge Financing 9 Equity Mortgages 9 Home MortgagesRenovation We can help with rush purchases, debt consolidation, working capital, arrears and more.
