Home Trust has taken bundle mortgages to the next level.
Bundle mortgages consist of an uninsured first mortgage to 80% loan-to-value (LTV) plus a second mortgage for additional funds. Since the financial crisis, they haven't generally exceeded 85% LTV total. Home Trust now offers one at 90%.
Home Trust pulled its bundle mortgages off the market for a while before re-launching them last month. It says that was related to changing investor guidelines. The hiatus also coincided with a reported review of these products by banking regulator, the Office of the Superintendent of Financial Institutions (OSFI).
The target market for its bundle is the borrower who can’t get an insured mortgage for 90% LTV. That could include someone with harder-to-document income, like a self-employed borrower for example.
The minimum credit score for this product is 620.
Instead of a Canada Mortgage and Housing Corporation (CMHC) insurance premium (2.4% on 90% LTV mortgages, effective May 1) Home Trust charges a lender fee.That 2.5% fee can be capitalized into the second mortgage so it's not an out-of-pocket expense.
The product is currently available in big metros like greater Toronto, Vancouver, Calgary, Edmonton and Victoria. Contact Home Trust for its specific lending areas.
Related: The Future of 85% Bundles
Rob McLister, CMT (email)
Last modified: April 25, 2014
Hi
What is the interest rate for this mortgage? Thanks
5% plus 2 fees
Is it available up to 90% on condos in Toronto? Thanks
Is it for purchases only or is it available for refinances?
Hi everyone,
Thanks for the questions.
SSingh: 4.99% at the moment but please verify with Home Trust at the time of application.
MortgageMan: Unfortunately not. The bundle solution cannot be used for condos.
Interested in Refinancing: Not at this time.
Hi..I bought house with 4.25% for 1 year and stuck because of realtors and mortgage broker in 2nd mortgage which worse my condition with 75% mortgage from home trust 15% by 2nd mortgage and 10% is mine..is there any refinancing option for this worst scenario Coz atlast they took lot of fee from me incase of 2nd mortgage
You can refinace after 1 year of purchase and get rid of private once property value is up
Hi there. I have a first mortgage and a second mortgage. Can I wrap both the 1st and 2nd mortgage with 90% LTV.