New Conventional Products from Xceed
It's always nice to see lenders launching new products--especially in a tough credit market. Xceed Mortgage announced a launch of its own a few days ago, with the unveiling of its new line of conventional mortgages.
Three new products were released. All three have 5-year fixed rates that are based on the applicant's risk profile (i.e. the borrowers selected amortization, Beacon, credit matrix parameters, etc.).
Prime Ultra Fixed
- Maximum LTV: 80%
- Minimum Beacon: 580
- Compatible with:
- Self-employed applicants (with 620 Beacons and 75% LTV [with minimal documentation] OR 80% LTV [with full documentation])
- New immigrants
- Borrowers with past bankruptcies
- 2nd homes
- Regular purchases and refinances
Prime PLUS Fixed
- Maximum LTV: 80%
- Minimum Beacon: 580
- Compatible with:
- 1-4 unit rental properties (with 600 Beacons, 80% max. LTV, using 80% rental offset)
- Self-employed applicants who can fully prove income (80% LTV & 600 Beacons)
- New immigrants
- Borrowers with past bankruptcies
- 2nd homes
- Regular purchases and refinances
Prime Fixed
- Maximum LTV: 60%
- Minimum Beacon: 580 (No minimum for owner-occupied fully qualifying purchases or refi's. Contact Xceed for more info.)
- Compatible with:
- Rental properties (with 600 Beacons, 60% max. LTV, and using 80% rental offset)
- Self-employed applicants who can fully prove income (60% LTV & 580 Beacon)
- 2nd homes (60% max. LTV)
- Regular purchases and refinances
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Since Xceed pulled out of the subprime market in March, the company has primarily been limited to selling regular high-ratio insured mortgages. These new mortgages give Xceed a nice product boost.
VP of Marketing & Sales, Colleen Adams, says: "Our goal is to foster relationships with a select group of brokers." The company will do that by focusing on a smaller pool of brokers who commit to higher volumes and funding ratios. (This is a small trend we're seeing nowadays)
Adams continues: "Our (new) conventional product offers rates dependent on the amortization the consumer chooses for their mortgage. With reduced amortization risk, we offer the consumer a lower interest rate..."
As for specific niches targeted by these products, Adams highlighted the following:
- "We will finance up $1.5 million on purchases or refinances, without a sliding scale."
- "On top of our standard 80% rental offset for rental properties we will also take into consideration a 50% rental offset on fully contained basement units."
- "Another key area of focus for us is the new entrants to Canada (market); as we feel this is an untapped market with great potential."
