Home Owner Grants – Provincial

Property Transfer Tax
http://www.rev.gov.bc.ca/individuals/Property_Taxes/Property_Transfer_Tax/ptt.htm

Property Tax Deferment & Financial Hardship Property Tax Deferment
http://www.rev.gov.bc.ca/individuals/Property_Taxes/Property_Tax_Deferment/ptd.htm

Energy Efficiency Rebates
http://www.climatechangecentral.com/files/myrebates/AlbertaEnvironmentEnergyRebateCard.pdf

Education Property Tax Assistance for Seniors
http://www.seniors.gov.ab.ca/financial_assistance/EPTASP/index.asp

SASKATCHEWAN
Remote Housing Program
http://www.socialservices.gov.sk.ca/remote

Land Transfer Tax
http://www.gov.mb.ca/finance/landtransfertax.html

Property Tax Relief for Low-Income Seniors and Low-Income Persons with Disabilities
http://www.fin.gov.on.ca/english/publications/bulletins/frost_9907.html

Solar Energy Systems Rebate Program
http://www.rev.gov.on.ca/english/refund/sesr/

Ontario Home Ownership Savings Plan (OHOSP)
http://www.rev.gov.on.ca/english/notices/str/02.html

Land Transfer Tax Refund for First-Time Home Buyers
http://www.rev.gov.on.ca/english/refund/newhome/index.html

Residential Property Tax Credit
http://www.snb.ca/e/1000/1017_8e.asp

Home Ownership Program
http://app.infoaa.7700.gnb.ca/gnb/Pub/EServices/ListServiceDetails.asp?ServiceID1=8315&ReportType1=All

New Brunswick Home Heating Oil Benefit
http://www.gnb.ca/0162/tax/homeheatingoilbenefit.asp

Home Completion Loan Program
http://app.infoaa.7700.gnb.ca/gnb/Pub/EServices/ListServiceDetails.asp?ServiceID1=8295&ReportType1=All

Family Modest Housing Program
http://www.gov.ns.ca/coms/housing/homeowner/FamilyModestHousing.html

Seniors Property Tax Rebate
http://www.gov.ns.ca/snsmr/rebates/programs/seniors.asp

Homeowner Residential Rehabilitation Assistance Programs
http://www.gov.ns.ca/coms/housing/homeowner/HRRAP.html

Disabled Residential Rehabilitation Assistance Program for Homeowners
http://www.gov.ns.ca/coms/housing/homeowner/DDRAPforHomeowners.html

Emergency Repair Program
http://www.gov.ns.ca/coms/housing/homeowner/ERP.html

Home Ownership Preservation
http://www.gov.ns.ca/coms/housing/homeowner/HomeOwnershipPreservation.html

Small Loans Assistance Program
http://www.gov.ns.ca/coms/housing/homeowner/SmallLoansAssistance.html

Parent Apartment Program
http://www.gov.ns.ca/coms/housing/seniors/ParentApartmentProgram.html

The Senior Citizens Assistance Program
http://www.gov.ns.ca/coms/housing/seniors/SeniorCitizensAssistance.html

Provincial Housing Emergency Repair Program
http://www.gov.ns.ca/coms/housing/homeowner/PHERP.html

Senior Citizen Real Property Tax Deferral Program
http://www.gov.pe.ca/pt/taxandland/index.php3?number=20181&lang=E

Real Property Transfer Tax – Exemptions
http://www.gov.pe.ca/pt/taxandland/index.php3?number=1012256&lang=E

Home Heating Rebate
http://www.fin.gov.nl.ca/fin/homeheating/

Bridgewater Bank
1)  For all CMHC deals that run through Emili, make sure to include:  Profession & length of time in industry, Age of Property, Sq Footage of Property (Don’t include any basement suite area),   Original Purchase Price and Dates for Refinances.  BFS Income must be reasonable.

Firstline
1)  Revised Pricing on FNF  for BC only.  Land Titles have increased their registration fees so the new fee will be $402.60 effective July 2, 2009

ING Bank
1) Remember to Fax all supporting documents to ING.    Do Not email requests for changes to a deal.   Fax Header should include Client full names.  Make sure to use the CIF/Lender Reference # (7 – 9 digits long)
2)  All docs must be submitted 10 days prior to completion for Purchases and Refinances.  20 days prior to completion for Switches.
3)  Pre-Approvals  For each pre-approval submitted between June 1 and June 22, a rate hold certificate will be issued.   Should your pre-approval turn into a real deal make sure to quote the Deal ID or Client Number when re-submitting in the notes section.
4)  To increase the ID process for all switches,   ING have hired Centrac as well as First Canadian Title to give better turn around time.

MCAP
1)VIP M-Power variable mortgage is now at Prime + 35%.  Must fund before July 31/09.  For Purchases and Refinances only, minimum 15 year amortization.  For new business only, paying 80 bps.  Rate buy downs are not available using your yield account.
2)  Effective July 15, 2009 MCAP will NO longer except Fax or Email delivery for documentation.    All documents must be uploaded through Professor.

Merix Financial
1) 50/50 Wise Product.  Today if you put a client into the 50/50 product the net rate will be 3.57%    (Prime + 40% & 5 yr at 4.49%)
2)  18 month special – rate of 2.75%  (Additional .15 bps for rental properties)  Deal must close by Aug 28/09.  New deals only, no pre-approvals.  Switches and Transfers not permitted.  Commission paid based on a two year term.  This is a CMHC program so all cmhc guidelines will be used both conventionally and hi-ratio.  Submit deal through Filogix using a 1 yr term but in your notes section mention you want the 18 month term.

National Bank
1)  All-In-One Checklist – Must be owner occupied, max 4 units.  No rentals or second homes.  Not eligible for switches; Rate hold is for max of 90 days;  Max LTV is 80% for fully qualified, max LTV is 60% for BFS.  Max LTV 50% for equity program.   Min beacon is 670 for fully Q, Min beacon 680 for non-income qualifying.  Submit a regular mortgage and use the 3 yr posted and 25 yr am to qualify.  Make sure in the notes section state how you want to split the mortgage, if any or if you want it all in a LOC.

ResMor Trust
1)  Will now qualify their VRM using their 3 year fixed rate.
2)  30 day quick close – 5 yr special at 4.39% for AAA deals.  =  LTV > than 95% min beacon must be 650 for primary borrower and 620 for additional borrowers.  LTV <90% beacon of 620 for primary borrower and 600 for additional borrowers.  Must fund within 30 days
3) Rate Premiums – There will be an increase of .25% on the rate when:  Co-borrower release clause is requested.  Mortgage balance is under $50,000 or over $1,500,000..  There is less then 12 months credit reporting, or the property is a mobile home.

Street Capital
1) Ways to increase your turnaround time.  Provide details, minimum beacon of 600 and be current within 60 days.  Private sales only if arm’s length transaction.  All subjects must be met within a minimum of 5 business days.

TD Canada Trust
1)  Effective June 22, 2009, TD will no longer do pre-approvals or rate hold requests.  Pending pre-approvals already in the que will not be adjudicated but will be given a rate hold.

TMG Branded
1) 50/50 Mortgage eligible for Purchase, Refinances, Rental properties and business for self.    Ineligible transactions:  Pre-approvals, Transfers, No Frills, Second Homes, vacation homes, New to Canada.
2)  TMG Mortgages is very proud to have many strong relationships with numerous funding sources.    Now offering a 30 month term as well as a 4 yr term.

CMHC GUIDELINES

-CMHC will allow a full rental property to be registered in a company name for fully qualified deals only.
-CMHC BFS simplified program is not eligible.
-When submitting a rental application with a Corporate borrower, the corporation’s full legal name is entered in the guarantor field and the individuals providing their personal loan guarantees in the borrower and co-borrowerfields.
-The mortgagor on title may be listed in the “Borrower”, “Co-borrower” or “Guarantor” fields in the Emili system for CMHC.

GENWORTH GUIDELINES

-Genworth will only allow a full rental property to be registered in a company name for fully qualified deals only.
-Genworth BFS Alt A program is not eligible.
-When submitting a rental application with a Corporate borrower, the corporation’s full legal name is entered in the guarantorfield and the individuals providing their personal loan guarantees in the borrower and co-borrower  fields.

LENDER GUIDELINE EXAMPLE

-Maximum of 2 guarantors only (both AA and AAA deals).
-The guarantor(s) must have signing authority with the company.
-The guarantor(s) must pledge a personal guarantee.
-Confirmation that the corporation is financially sound, with no liens against it.
-Personal guarantee(s) for 100% of the mortgage loan is required when the borrower is a corporate entity.
-All parties on the application will be responsible for 100% of the loan, irrespective of which party is on title as mortgagor.

MORTGAGE RATE NEWS

Bank of Canada (June 4^th) has announced to maintain the prime rate at 2.25%. In recent weeks, financial conditions and commodity prices have improved significantly.  Consumer and business confidence have recovered modestly and the underlying macroeconomic risks are roughly balanced. Conditional to the outlook for inflation, the rate can be expected to remain at its current level until the end of 2^nd quarter of 2010. Next rate announcement is July 23^rd 2009.

Frequently Asked Questions (FAQ)

Q. How does “prime rate” affect my mortgage?

If you have a variable mortgage, your rate will be adjusted according to the prime lending rate, which in most cases Canadian major banks follow.  The current best 5 year variable is prime + 0.40%

Q. Why am I hearing the “rates are going up”?

This applies to “fixed rate mortgages”.  Canadian fixed mortgages depend on the bond rate.  We are seeing Canadian bond rate on the rise, which directly resulted in the recent week rate rise.  Don’t wait to get your rate hold if you are switching, renewing, or planning to purchase a property.

100% Financing is no longer available through CMHC, Genworth or AIG. However, you can still do 100% financing using the follow methods:

1. CMHC
 insured mortgages will
 allow 
5% 
down
payment
 to 
come 
from
 Non
-traditional 
sources:
a. Gift
 from 
family 
member
b. Borrowed
 funds
–
LOC,
loan,
but 
payments 
must 
be 
included 
in 
TDS 
calculation
c. 5% 
Cash
back
 from 
Lender
–
  Currently
 there are only 
two
 lenders 
who
 allow
 a
 lender 
cash
 back
 to 
be
 used 
as 
down
payment.

 Remember
 the
 rates
  will
 be 
posted rate, 
not
 discounted.

2. Use a B lender (non-traditioanal banks) – much higher rate but allow 100% LTV
Purchase or Refinance. Client must be an employed individual using reported income fully debt serviced, credit >640 or higher.

What It Will Really Cost to Own a Home?

As a quick rule of thumb, any home buyer can expect to pay from 1.5% – 4.0% of the purchase price of their home in closing costs.

Here are a list of expenses and some of them are optional:

Cost of Home
Purchase Price
GST (on new/significantly refurbished homes)

Upfront Costs
Appraisal fee $250 – $400
Down Payment and Deposit
Estoppel certificate fee (for condominium/strata unit)
Home Inspection $300 – $450
Land Transfer Tax
Legal fees and disbursements ($700 – $1200)
Mortgage broker’s fees (Free! o.a.c.)
Mortgage loan insurance premium (can be included in your mortgage)
Prepaid property taxes/utility bills
Property insurance
Survey or certificate of location cost
Title Insurance (do NOT neglect this one!)

Ask us about first time home buyer benefits guide!

Product Changes & Updates for the month of March, 2009

ATB Financial (AB)  
1) Quick Close 30 days special = 5 yr rate of 4.15%
2)  Still do mortgages on Raw Land however no commission
3)  HELOC’s available to 80% LTV – pays 50 bps on funds used 60 days after Heloc is registered
       
Bridgewater Bank   
1)  Advantages of working with BWB – Work with all three insurers.  Will use 80% rental offset on both suites and rental properties.        Will give 2% cash back to be used for anything except DP.  Will use Child Tax Credit to age 12.  Minimum beacon of only 600 for primary applicant.
2)  Introducing the BwB Re-Fi Express program – offers you and your clients speed and convenience. 

Envision (BC)  
1)  Envision has re opened their doors to all mortgage brokers for a limited time 5 yr special.    Valid until April 17, 2009.

Firstline   
1)Open ARM Commission Claw Backs – Effective March 9/09 Firstline will commence a claw back policy if clients payout their mortgage as follows:  Day 1 – 180 = 100% clawed back, Day 181 – 365 = 50% clawed back, After Day 365 = None
2)  Express Underwriting System is now being used.  This new system assigns a mortgage number and an underwriter immediately therefore all all docs can now be faxed directly to that underwriter.  3)  Early Renewal Process:  Once you get the new “post funding” Client Consent form signed (currently onTMG  Broker Net website) you can contact Firstline directly to discuss penalties or any blended rate opportunities on behalf of your client.
4)  Extended their quick close special until May 31, 2009 and funding no later then June 30/09.  Valid for standard fixed product, does not include float rate mortgages.
5 )Make sure the following is included when submitting to Firstline:  a) Client Consent  b) if True Name Fraud Warning appears on the bureau, make sure due diligence is done and explain in notes.  c)  Reason for mortgages (refi or purchase)   d)  Client information – both home & work telephone numbers should be included.
6)  Relaunches New Immigrant and Non Residents Programs for Conventional Lending.  a) New Immigrant up to 65% LTV, max mortgage = $1M.  Standard ratios apply based on stated income.  Power of Attorney is allowed.  b)  Non Resident Investment Property program up to 50% LTV, Max mortgage = $750K,  max 1 ppty allowed.
               
HSBC   
1) All 5 year fixed deals that are currently in the pipeline and fund up to and including April 30/09 will receive an auto float down rate of 3.99%.  All deals submittted after March 31/09 will receive the rate of 4.09%
       
Home Trust Accelerator  
1)  Lending areas have increased in BC to include:  Sooke, Cobble Hill, Duncan, Chemanius, Lady Smith
       
IC Savings (ON) 
1) Remember IC Savings has both an A program as well as a B program for those who may have credit challenges.
       
ING Bank  
1)  Rate drops are automatic with ING.  They do a look back and always give clients the best rate.    Remember you must be an approved ING broker to submit. 
2)  To be an approved broker, the following criteria is required:  a)  Minimum $5M or 25 deals funded annually to be given Provider status,  $10M or 50 deals to be given Partner status.  Approval ratio’s must also be monitored:  a) Approval Ratio (approval to decline ratio = 75%).  b)  Sign Back Ratio (where the client signs back the commitment) = 70%.  c)  Funding ratio (% of deals funded from signed back commitments) = 85%.
3)  Rental Income Guidelines a) Conventional – O/O will use 80% of gross rental as other income.  This applies to both subject or non subject properties  (no rental offset can be used)  b) Hi-Ratio – will use 80% direct rental offset on subject and 50% into other income on all existing revenue properties.
4)  New Guidelines for BFS – effective March 1/09 ING will only do 85% LTV for BFS refinances.  Minimum beacons have increased to 650.  For conventional refinances, minimum beacons must now be 620.
5)  All appraisals must be ordered through BrokerWorx or Nationwide Appraisal Service (NAS)
       
MacQuarie Financial  
1) Announcing an Adjustable Rate Mortgage – 5 yr Spring Special.  Rate is Prime + 1%
       
MCAP   
1)  Assessments no longer accepted to confirm property value as they are based on previous years value and therefore not deemed relevant in today’s current market.    Full appraisals now required on all files where LTV is 50% or over.   Drive by appraisals required on LTV 50% or under.   Desktop or tax assessments no longer accepted
2)  Policy Updates – a)  all brokers who wish to submit to MCAP must be registered using PROFESSOR.  b)  Minimum funding ratio requirement is 67%  c)  all documents must be submitted at least 10 day prior to funding  d)  make sure your notes indicate any quick close rates that you require.
3) 30 day  Quick Close specials do not include:  Rentals, Stated Income, Pre-Approvals, Secondary Homes or Transfers)
4)  U-curve Rate Policy – clients will receive lowest rate between the commitment date and 2 days prior to funding.
5)  New Appraisal Ordering Process – Effective April 6, 2009 all appraisals need to be ordered through Solidifi.  Please register with Solidifi Values
6) does not participate in the high ratio policy of 44%/44% if beacon scores are over 680.  Their maximum ratios are 32%/42%
       
Merix Financial  
1)  5 yr quick close special has a capped finder’s fee to 75 bps (70 cash and 5 credits) for all those on the upfront model.
       
Northern Savings (BC)   
1)  Pays Trailer Fees on all Renewals for the life of the mortgage.  Currently paying 100 bps on 5 yr fixed
       
ResMor Trust   
1)  Effective April 1, 2009 – ResMor Trust introduced its new Broker Achievement Program.  This replaces their Corporate Volume Bonus Program so Resmor is no longer considered a Matrix Lender for those  Agents on a VB sharing model.
2)  Reinstates their 90 day Mortgage Pre-Approval effective April 3/09.
       
Scotia/Maple    
1)  The Vancouver underwriting centre is no longer accepting supporting documentation today. All documentation for approved deals or new deals submitted should be sent to the Calgary centre at  Fax: 1-866-265-5577. Going forward documentation for all deals will be received and reviewed by Calgary. Review the deal on the Scotia web site for your new assigned underwriter name. All contact information is available under “Contact Us” at bottom of web page.
For the remainder of April you will only fax information to our Vancouver office if/when the underwriter asks you to send items to Vancouver specifically. 
2)  The Scotia Fixed 10 year Mortgage is not available for Pre-approvals, Free Down Payment mortgage, Progress Advance mortgage or Refinanced mortgages with multiple draws.
       
Street Capital   
1)  Because Street insures all their mortgage, a CMHC fee will be added even if the LTV is below 80% which client pays for.  Remember any transfers made to Street must be CMHC insured.  All basement suites must be legal in order to use the basement suite income.
2)  Would like to remind that their VRM rate at P + .80%  qualifies using their 3 yr discounted rate so client will qualify for more of a mortgage.  20/20 pre payment also available.  (Not available on rental properties)
       
TD Canada Trust  
1) Replacement Mortgage Policy:  Given today’s market conditions, the IRD penalty will be large.  If one of your customers is considering discharging their TD mortgage have them request an Information Only Statement by calling  1-866-222-3456.  Remember this information is for general mortgage purposes and should not be used to determine final payout penalty.  For an exact payout statement, a lawyer or notary must make an official request.
2) Cash Back Products:  4% on 5 yr term, 5% on 6 yr term, 5% on 7 yr term, 5% on 10 yr terms.  Rates are 1% higher than fully discounted.
3) Recently, there have been a number of deals declined by our Insurers because incorrect or invalid customer phone numbers and/or postal codes were included on the credit application.   It is important that the work/home phone number and postal code fields are completed with accurate information before the application is submitted to the underwriter for approval. This will result in faster credit decision and a better overall customer experience.
       
TMG Branded Mortgage    
1) Transfer/Switch Program Clarifications: Max LTV mortgages that can be transferred is 95%.  Max amortization period on hi-ratio is 35 yrs (so if client has a 40 yr am, this mortgage will not be accepted under their Transfer Program.  Max amortization on conventional is 40 years.    A maximum of $1,000 can be added to current mortgage should client have to pay a penalty.  No exceptions to this policy.   Require a minimum of 15 days to complete once all documents have been received by lender.
2)  Effective March 13/09 -  no longer require a T1013 signed by applicants that are using an NOA to confirm income.  
3)  Capped appraisal costs to $375. on transfers
4)  Buy down rate special available on 3, 4 or 5 yr terms.
5)  Rental Properties – will use 80% direct rental offset where the rental income is validated with T1 Generals.  If income cannot be validated, only 50% of rental income can be used as “other income”
       
VanCity Credit Union (BC)   
1) Still not doing any pre-approvals or rate holds.
       

Non Conforming Lenders       
       
Firstline Access  
1)  BFS clients can borrow up to 80% LTV with a beacon as low as 580.
       
IC – Italian Canadian Savings Cr Union (ON)  
1) Remember IC Savings has both an A program as well as a B program for those who may have credit challenges.

Wells Fargo
1)  Purchase and Refinance – Will still do 100% LTV with a 40 year am – Open mortgage too!!  Need-640 beacon for primary applicant.  Must be salaried, zoned residential on SFR, Town home, Duplex, and Low Rise.  Three trade lines on the highest income earner  and 1 at least 36 months .   Max deal size at 100%  $449,999

CMHC will no longer accept applicants under their Self Employed program who own and incorporate a company. CMHC will still however do “sole proprietor” under that program. If applicant is incorporated they will now have to fully qualify.

Other high ratio mortgage insures in Canada also include Genworth and AIG. However, the lenders must adopt the insurer’s program for you to obtain the insurance.

CMHC will no longer accept  applicants under their Self Employed program who own and incorporate a company.   CMHC will still however do “sole proprietor”  under  that program.   If applicant is incorporated they will now have to fully qualify.

Other high ratio mortgage insures in Canada also include Genworth and AIG.  However, the lenders must adopt the insurer’s program for you to obtain the insurance.