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.
CEO Nick Kyprianou tells us: “Overall we take a common sense approach to lending. The real estate is the key to our lending. The property must be marketable.”
Pre-payment privileges include 20% lump-sum (once a year on anniversary date) and a 20% annual payment increase option. Terms are fully-closed barring a bona fide sale (in which case standard penalties apply), but borrowers can refinance at EFT if needed.
Rates will generally be posted + 0.25% to + 1.5%.
Kyprianou told CMP: “Our target for year one is to do $100 million in closed business, and we think we should achieve that goal.” Our guess is that they’ll probably blow right past it.
EFT will lend in Ontario only for now—mostly on properties within an hour or so of the Greater Toronto Area (GTA). An expansion is planned to other provinces (including BC and Alberta), but that’s a few years off, Nick says.