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More on VFC Home Mortgages

VFC-Home-Mortgage VFC Home Inc. is open for business.

As noted in our prior stories, VFC will be targeting borrowers who don’t qualify through traditional lenders.  In addition, the company will lend only through mortgage brokers.

Below is a summary of what VFC does.


VFC’s Lending Guidelines:

  • Underwriting Process:  According to Anne Albani-Dolson, National Sales Director, VFC lends primarily “based on the credit profile of the client and the marketability of the property.” VFC uses five “keys” to classify borrower risk.  VFC says, “Once we determine the credit behaviors of the client we assign a Key, which determines the rate.”
  • Mortgage Types:  Purchases and refinances of owner-occupied or rental properties. VFC also offers BFS stated income mortgages.
  • Minimum Credit Score:  VFC says it “does not use Beacon scores when decisioning a deal.”
  • Max. LTV:  90% on both purchases and refinances
  • Interest Rates:  VFC’s rates seem reasonable for the higher risk they are taking and currently range from 6% on up.  The actual rate depends on which “Key” the borrowers falls into, the term, and the LTV.
  • Fees:  Instead of mortgage insurance, VFC offsets risk with a 1% to 3.5% Administration fee which is capitalized into the mortgage.
  • Max. Amortization:  30-35 years
  • Max. Debt Ratios:  VFC Home says it does not use GDS, only TDS ratios.
  • Lending Areas:  Ontario and BC for now. Other provinces will likely be added later.

Features Common to All VFC Home Mortgages:

  • Payment frequencies:  Monthly, semi-monthly, bi-weekly and weekly
  • Prepayments:  10% lump-sum prepayments annually plus a 10% payment increase allowance
  • Rate Holds:  60 days

VFC Home Inc.’s website will be ready in a couple of weeks according to the company.  In the meantime, VFC Home is currently available for broker submissions through Filogix Expert.  Agents can call 1-800-832-3321 for more information.

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Last modified: April 26, 2017

Robert McLister is one of Canada’s best-known mortgage experts. A mortgage columnist for The Globe and Mail, interest rate analyst and editor of MortgageLogic.news, Rob has been covering Canada's mortgage market since 2007.