Mortgage Rates & Mortgage Broker News in Canada

FCT Takes on FNF with Platinum Service

Title companies are competing hard to close your mortgage.

The two giants in the industry are First Canadian Title (FCT) and Fidelity National Financial (FNF).

Lenders routinely use one of these two to close mortgage refinances and switches (aka., assignments).

The benefits to consumers include lower costs (compared to using a standalone lawyer) and convenient in-home signing.

The disadvantages have traditionally been (among other things) longer closing times, less personal service and less legal advice than if you closed with a lawyer.

FCT is now looking to change perceptions and win people over with a revamped offering it calls “Platinum Service.”

V-Close from Home

For Sanjay Soni, trudging down to a lawyer’s office to sign closing papers for a mortgage transaction is what he calls “old school”.

That’s why Vanguard Law Group, where Soni is Managing Partner, came up with a new way of doing things.

In July of last year, the real estate law firm launched a novel service called V-Close. V-Close allows Ontario real estate clients to sign all necessary paperwork for a purchase or sale transaction from the comfort of their own home or office. It works like this:

Equity Lending Options Expand

As the credit crisis fades further from memory, prime lenders continue to slowly loosen up their uninsured equity lending guidelines.

Prime equity lending (as opposed to subprime equity lending) is designed for people with good credit and lots of equity, who either:

a) have income that is harder to substantiate; or,

b) prefer an easy streamlined approval process.

In either case, approval requires little or no income validation.

Here’s a rundown of recent equity lending changes at BMO, ING Direct, and Street Capital.

Scotia Changes its Progress Draw Mortgage

Those needing financing to construct a new home may be interested to know that Scotiabank has modified its Progress Draw Construction Mortgage.

The good:

• Clients now get more time to complete construction. Homeowners were previously allowed 12 months to finish. Scotia now gives them 15 months.
• Payments are interest-only during the construction period to preserve cash flow.
• There is no more application fee.

Lendit Financial Credit Rebuilding Loans

Serious credit problems don’t necessarily disqualify you from a mortgage.

If you want good rates, however, you’ll need a prime ("A") lender to approve you.

The challenge is, “A” lenders want to see re-established credit before they’ll consider an application. As a rough rule of thumb, that means two years of perfect repayment history, with at least two or more accounts.

There are various ways to obtain those two accounts. The most common is with a secured credit card (like Home Trust’s, Peoples Trust’s, or TD’s).

Lendit Financial offers a second type of option. It’s called the Lendit GIC Investment Loan.

Vancity Saver’s Mortgage

Vancity has taken the B.C. rate crown for now with its new Saver’s Mortgage.

The Saver’s Mortgage is a 5-year fixed with an ultra-low rate (3.64% currently) and a twist. You need to:

• Save a minimum of $50 a month in a non-registered Vancity savings account
• Get two other eligible products from Vancity (Cross-selling lets Vancity offer what is the lowest advertised rate in Canada—that we know of anyway.)

“Eligible products” include non-registered investment accounts, term deposits, payroll deposits, Vancity's VISA, credit lines, loans and mortgage insurance.

Mortgage Centre Gets CIBC CashBack Variable & Wealth Builder

A key benefit of being a Mortgage Centre broker is having access to CIBC branch products. That benefit has recently improved with the addition of two more options.

Mortgage Centre brokers can now offer:

CIBC’s Wealth Builder Option

• Meant to build savings while one pays down his/her mortgage
• Up to 140 bps off posted fixed rates plus 0.25% cash back at closing and $100 cash back each quarter, OR 145 bps off posted fixed rates plus $100 cash back each quarter
• A variable-rate option is also available

Argentum Adds Private Label Mortgage

Argentum Mortgage and Finance Corp. has launched a new white label mortgage.

The product is underwritten by Paradigm Quest and features competitive rates and “the most aggressive trailers in the industry by far,” says Albert Collu, President and CEO.

Equity Financial Trust – Now Open

Equity Financial Trust (EFT) has begun accepting mortgage applications and now has about 200 individual brokers signed up.

The company will commence with Alt-A and B financing with 1-, 2-, 3-, and 5-year fixed terms. EFT will lend up to 80% LTV. Here’s more info on the mortgages in which EFT specializes: Deal Types. 

EFT will consider BFS borrowers, stated income, ex-bankrupts (no waiting period on discharge), consumer proposals in progress (borrowers don’t need to pay them out), new immigrants, and people with no credit.

TDFS Equity Key Mortgage

Those with imperfect qualifications but 30% equity now have a new mortgage to choose from.

TD Financing Services has just expanded the roll-out of its “Equity Key” product.

First National’s Option 60

Last week, First National rolled out a 3.79% 5-year fixed offer called “Option 60.”

It’s a fairly decent rate for a nationally-available full-featured mortgage that includes a:

• 60-day rate hold [Most competing full-featured mortgages at this rate have only a 30- or 45-day hold.]

TD Adds Payment Flexibility

TD polled 1,001 Canadians in December and found that:

• 83% would like the ability to lower their monthly payments during an unexpected life or work event
• 75% would like the ability to skip a payment during an unexpected financial shortfall
• 65% would like the ability to postpone payments during a planned care leave or extended holiday

Other things being equal, it’s interesting these percentages aren’t higher. Payment flexibility can be a big stress reliever when you need it.

With this in mind, TD has announced a set of new payment options. Customers who qualify can now:

Street Capital to Launch Equity Mortgage

There’s been no lack of positive news over at Street Capital lately. We just caught wind that they’ll launch a new equity mortgage tomorrow.

The company says the product is geared “predominantly to self-employed and commissioned borrowers.” It’s a “low doc” mortgage offering borrowers a “convenient and streamlined approval process.”

Most borrowers who meet the product’s guidelines will get access to Street’s best rates with no rate premiums.

Street Capital Adds Online Mortgage Access

Doesn’t it drive you nuts to wait on hold for information you can find online in 20 seconds?

That kind of thing is a major annoyance with some smaller lenders that offer either minimal online access, or none at all.

For that reason, it was good to see Street Capital launch its new MyStreetMortgage.ca web portal. Street’s new website lets you:

Coast Capital’s “You’re the Boss” Mortgage – Mortgage of the Year

There’s been a trend in lenders trading deep mortgage discounts for piles of restrictions. “No frills mortgages” are case in point.

Lenders simultaneously giveth and taketh like this because flexibility costs them money. Mortgages with big pre-payment allowances, for example, are more expensive to fund.

BC credit union, Coast Capital Savings, has found a way to make flexibility work while still offering one of the lowest rates in the market. The result is the “You’re the Boss” mortgage.

2011 Should Be a Good Year For ResMor

If we had to guess which lenders will make the most headway in 2011, ResMor Trust would be near the top of the list.

That’s because a lot will change when it receives final regulatory approval to become Ally Bank Canada in 2011.

The “You’re The Boss” Mortgage

Coast Capital is one spunky lender.

Folks at Coast aren’t content with being the second largest credit union in Canada. They want to be the first. So, the BC-based company has been challenging big banks head on.

Its strategy has primarily been two-pronged: a) advertise some of the most competitive mortgage rates in BC; and, b) develop innovative products.

Coast’s new “You’re the Boss” mortgage is case in point.

The “You’re the Boss” mortgage comes with:

Scotia Total Wealth Credit Solution

We’ve all heard the cliché “It takes money to make money.” Thousands of affluent Canadians follow this adage by borrowing against their existing wealth, investing that money, and building more wealth.

Those well-heeled individuals typically own a broad range of assets with which they can leverage, including: real estate, stocks, bonds, mutual funds, money markets, insurance policies, etc.

Up until now, however, it was difficult to find a single lender to lend against all these different asset classes.

That changed on October 27, when Scotia officially launched its new “Total Wealth Credit Solution” (TWCS).

Buyer Protection Plan

Realtor referrals can be a valuable chunk of business for mortgage professionals. But cultivating new relationships with Realtors is a challenge.

Real estate agents have heard all the sales pitches from bank reps and brokers before (i.e. low rates, fast approvals, good products, etc.). It takes something a little more unique to snatch Realtors’ attention these days. That got Greg Williamson thinking.

Williamson, a Calgary mortgage broker and mortgage trainer, has come up with an idea called the Buyer Protection Plan (BPP).

Credit Assist From Home Trust

Borrowers with repayment issues now have a new mortgage option thanks to Home Trust’s “Credit Assist” product.

Credit Assist is designed for those who don’t meet insurer guidelines and have “bruised credit.” It’s meant to be a 1-year solution to help people get back on their feet. After one year, the idea is for the customer to renew into a prime mortgage at more favourable terms.

Home Trust officially requires a 520 minimum credit score for approval, but it will consider lower on a “case by case” basis. The key is that borrowers must have verifiable income and a 44% maximum total debt service (TDS) ratio.

Credit Assist lets homeowners borrow up to 85% loan-to-value without needing default insurance. (Normally, LTVs above 80% require insurance from CMHC, Genworth, or Canada Guaranty. The exceptions are called “uninsured mortgages” and they’re offered at higher rates by non-prime lenders.)

Pino Decina SVP of Mortgage Lending says, “Customers can either refinance their existing debt through a Credit Assist Bundle or place a Credit Assist Equity Line Visa behind an institutional first mortgage.” The product is also available for purchases.

Mortgage options for non-prime customers have been limited since the onset of the credit crisis in 2007. Lenders have slowly waded back into this space but choices are still skimpy compared to 3-4 years ago.

In terms of direct competition, Decina says little exists. “HTC has prided itself on providing mortgage solutions for the underserved sectors of the Canadian market and we feel we’ve done it again. We believe we have no institutional competitors for this product.”

Credit Assist will be fully rolled out in Ontario by Friday. It will make its way to other provinces sometime after the initial launch.

For brokers who may be wondering, this product is not related to Genworth’s Credit Assist program that was discontinued in April 2009.

Here’s a summary of the key points:

• Max. LTV:  85%
• Term:  1 year term
• Fee:  1.50% (purchases) to 1.75% (refinances)
• Minimum Beacon:  520 (lower evaluated case by case)
• Registered As:  A 1^st and 2^nd mortgage (The 2^nd is fully open)
• Income Type:  Verifiable only
• Max. Amortization:  30 years
• Property Type:  Owner occupied and owner occupied rentals
• Private sales:  Not allowed
• Fee to Renew:  $400
• Lending Area:  Marketable urban and suburban properties in Ontario

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If you’re a broker wanting more information, Home Trust is hosting a webinar on Wed. Nov. 10 at 2:00-2:30pm EST. Brokers receive a special promotion for attending + .25 CE Credits. Here is the link to register: Credit Assist Webinar Registration