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.”
Last modified: April 29, 2014
I find it curious that there are no comments regarding Xceed Mortgage or their new products. Is It the “select group of brokers” comment, the products or the company?
Hi Drew,
The ABCP debacle almost completely pulled the rug out from beneath Xceed in the fall of 07. Since then the company has restructured and we hope they have continued success.
Launching conventional products is a good move for them. Hopefully Xceed will market these mortgages well and show brokers where its niches are.
It will also be interesting to see how their “select brokers” model works out. I don’t blame them one bit for demanding higher funding ratios.
I’m sure that limiting their business to higher volume brokers will be questioned by some, however. Their volume requirements are low but with so many competitors in the insured space, it may be hard to attract new market share this way. Hopefully Xceed is really successful at differentiating itself.
Cheers,
Rob