After years of serving the alternative lending market, AGF Trust has charged into the high-ratio insured mortgage business–with the launch of its “Simple Mortgage.”
The Simple Mortgage rolled out on October 14. It’s designed to be a full-featured mortgage at no-frills rates (currently under 4% on a 5-year fixed). This is a first for AGF as it's never offered fully-discounted insured mortgages before.
All Simple Mortgages are CMHC insured. Interestingly, unlike most new insured products, AGF’s Simple Mortgage is not securitized (resold to investors). Instead, the company says “AGF Trust is currently well capitalized and will hold these mortgages on the balance sheet.” The company says it views insured mortgages as “an attractive asset class.”
Besides solid rates, AGF cites its primary advantages as being:
A longer rate hold than its no-frills competitors (60 days vs. 30 days)
More flexible payment and pre-payment options.
AGF also has an opportunity to impress with service, given the subpar turnaround times at many lenders nowadays. (Hopefully AGF has plenty of underwriters on staff to come through on this promise.)
The company says it chose the name “Simple Mortgage” because its mortgage underwriting criteria are “standard, traditional, and basic.” AGF says there is nothing "grey" about this mortgage in terms of qualifying. The goal is to make qualifying “simple black and white.”