Dan’s
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Broker Resource Centre

Products,
Policies and
Servicing

As a CMLS registered broker, this resource centre is designed for you to use as a quick reference tool to gain a better understanding of our products, policies and servicing. This resource centre will be updated regularly as changes occur to our lending guidelines and services..read more

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Regional Manager and Underwriter Feature.

This month, The Advisor features Anna Willis, Regional Manager, Greater Vancouver Area and Vancouver Island, and underwriter Genevieve Desrochers. Read the interviews they gave CMLS, get to know their great personalities, and gain insight into all the things that make them such unique people.

Case Study.

THE BAND NEW SIMPLIFIED BFS SELF DECLARED INCOME LETTER.

AVEO was able to assist a borrower tap into the equity in their home to help take their former spouse off of the mortgage and title. The former spouse had gone into bankruptcy because of a business, and the borrower had gone into a Consumer Proposal themselves as a result of shared liabilities and the loss of household income. By extending the amortization up to 30 years and utilizing 50/50 GDS/TDS ratios, the borrower was able to qualify for the mortgage with one income and release the ex-spouse from the home, and increase their own borrowing capability as the couple move on in their lives.

What’s new.

WE CAN SAY IT’S NOT NEW, BUT HERE IS A REMINDER THAT WE OFFER A NO STRESS TEST PRODUCT.

Offered in Greater Toronto Area – Ajax, Aurora, Brampton, Burlington, Caledon (inclusive of Bolton), East York, Etobicoke, Georgetown, Hamilton, King City, Schomberg, Nobleton, Markham, Milton, Mississauga, Newmarket, North York, Oakville, Oshawa, Pickering, Richmond Hill, Oak Ridges, Scarborough, Toronto, Vaughan, Concord, Kleinburg, Maple, Thornhill, Woodbridge, Whitchurch - Stouffville and Whitby.

• GTA Sliding Scale: o Near Prime = 80% of the first $2,000,000 & 50% of remainder o Bruised Credit = 65% of the first $2,000,000 & 50% of remainder

• Major Urban must have a total population of at least 100,000 + Ottawa and area (Nepean, Gloucester, Constance Bay, Stittsville, West Carleton, Cumberland, Kanata, Vanier), Kitchener - Cambridge – Waterloo, Kingston, London, Guelph, Brantford, St. Catharines and Barrie

• Major Urban Sliding Scale: o Near Prime = 80% of the first $1,500,000 & 50% of remainder o Bruised Credit = 65% of the first $1,500,000 & 50% of remainder

• Urban must have a population of 30,000+ Peterborough, Belleville, Sarnia, Cornwall, Sault Saint Marie, Dundas, Grimsby, Halton Hills, Stoney Creek, Innisfil, Stratford, Sudbury, Thunder Bay, Niagara Falls, North Bay, Bowmanville – Clarington, Georgina, Orangeville, Orillia, Quinte West (Trenton), Woodstock

• Urban Location Sliding Scale:
  • Near Prime = 80% of the first $750,000 & 50% of remainder
  • Bruised Credit = 65% of the first $500,000 & 50% of remainder

• Rural population under 30,000 must be within 50km of an Urban, Major Urban or GTA Area
• Non-Urban Locations Sliding Scale:
  • Near Prime = 80% of the first $500,000 & 50% of remainder
  • Bruised Credit = 65% of the first $500,000 & 50% of remainder
• Default insurance is required for all properties located in or near Non-Urban centers with population 50km from an Urban or Major Urban Centre

120 Rate Hold on Purchases & Refinances

• Owner Occupied, Owner Occupied with Rental & Second Homes
• Basement Suite 50% add back to income with lease or economic rents from appraiser o Suites must be legal / retrofit
• Non Subject Aveo Rental Worksheet No Stress
• Self – Employed income (Sole Proprietorship & Partnership) o 2yr average gross up by 15%
• Maternity / Parental Leave 18 months can be considered o Written confirmation must be obtained from employer stating anticipated return to work date
  • The applicant has the resources to cover monthly mortgage payments while on leave

Appraisals can be ordered direct, must be signed off by AACI, CRA or DAR

• Immediate Family Members that maybe considered for Down Payment or Co-Signing / Co-Borrowers: Parents, Children, Siblings, Grandparents, Legal Guardians, Legal Dependants, Aunts or Uncles

Bankruptcy must be discharged for 2yrs no exceptions

• Consumer Proposals are acceptable provided they have successfully paid the proposal off Mortgage Proceeds can be used to pay off a consumer proposal provided all other credit requirements are met
• Credit Counselling applicants are acceptable provided they have successfully paid the DMP off
• No Child Care Benefit Income
• Files Must be 100% complete 5 business days prior to funding or date must be pushed out for moved to another investor.

SLG UPDATE.

There is no hiding the fact that CMHC is taking a VERY long time to underwrite multi unit residential transactions. If any of your borrowers have purchased, refinanced, or obtained construction takeout financing recently, you’ve been forced to wait up to 3 months to obtain CMHC’s Certificate of Insurance!

Fortunately, CMHC is well aware of their current struggles and have made recent policy changes to ease the burden on buyers. The obvious challenge with their processing time is with purchases. Vendors are not always willing to wait 3-4 months to clear subjects. So CMHC has amended their policies as following:

As long as CMHC receives the application prior to closing on the purchase, then the lender can refinance any interim financing up to maximum loan-to-value.

Prior to this amendment a borrower could not purchase with cash, then refinance once the insurance came back. Even if the only reason they used cash in the first place was because CMHC was taking too long! The reason being is that this was now technically a refinance and equity takeouts are not allowed.

So now with the new policy change the borrower can close with our bridge loan, cash, private financing, a vendor takeback loan, or conventional financing at any LTV, and we can refinance at max LTV… as long as CMHC receives the application before closing.

If your borrowers are wanting to make a quick close on an apartment building and still benefit from the terms and conditions of insured financing… please contact us!

BROKER/OFFICE FEATURE.

Do you know the offices of HT Mortgage Group? The Customer Forward promise that is a foundation of CMLS is mirrored in the mindset of HT Mortgage Group—allowing for a great working relationship in the Grande Prairie region. This brokerage has been operational since 1999 and was rebranded in 2009 as HT Mortgage Group, a part of Dominion Lending Centres. Being a part of a recognizable brand has certainly helped ensure the success of HT Mortgage Group, however the true secret to the success this brokerage has experienced lies within the brokers and support staff themselves. Their ability to navigate the challenges of servicing a vast geographical and demographical market while remaining attentive to their clients’ needs has been a pillar of HT Mortgage Group since the beginning. With 11 brokers and 5 assistants under the HT Mortgage Group banner, a combined total of 6 languages spoken and 98 years in the mortgage industry, HT Mortgage Group is committed to ensuring each client is comfortable and confident throughout the process of purchasing a home.

HT Mortgage Group is a predominantly female brokerage, comprised of seasoned industry veterans with many years’ experience and tenacious up-and-comers - all team-focused individuals. Genuine leadership, true mentorship and innovation has been a hallmark of HT Mortgage Group. Everyone here works together to ensure the success of the group as a whole; this has been key to retaining new brokers and enabling them to evolve as solid industry professionals.

Since it’s inception, HT Mortgage Group has been constantly looking for ways to improve functionality. Staying tech-savvy and ahead of the trends has allowed HT Mortgage Group the ability to service a vast area. Being able to communicate with clients remotely has been increasingly valuable throughout recent years, enabling the brokerage to navigate the challenges presented by COVID-19 with ease.

Servicing the Northern-most regions of Alberta presents unique challenges and a niche market that our brokers have come to understand and navigate with ease. Most notable being the oil and gas industry and self-employed individuals making up a large portion of mortgage clientele. These files can be intricate to piece together and mitigate as it isn’t uncommon to have multiple T4s in a year for many clients. It’s just the nature of the industry and we the brokers are tasked to lay out the story behind that on the clients’ behalf.

Multilingual brokers able to communicate with buyers in their own language creates a level of trust and comfort between client and broker. Newcomers to Canada can communicate with brokers fluent in French, German, Dutch, Finnish and Hindi. Having the ability to speak to clients in their native language has cemented HT Mortgage Groups reputation as an inclusive and diverse brokerage, creating a lasting impact and long-term relationships with many returning clients.

The Customer Forward promise is a foundation of CMLS, mirroring the mindset of HT Mortgage Group and allowing for a great working relationship in the Grande Prairie region. CMLS has continually provided our clients with excellent mortgage options, policies, and great rates. With excellent underwriting and turnaround as well common sense on mortgage files and an exceptional trailer model for compensation, CMLS ensures that every deal is tailored to each individual’s unique needs.

The success of HT Mortgage Group cannot be measured solely in the deals brokered. Excellent leadership has allowed for exponential growth, both personally and professionally for all members of the HT team. The group loves to support local charities and entrepreneurial endeavors and takes great pride in being locally owned and operated. Staying true to our roots while adapting to our environment is how HT Mortgage Group remains a trusted mortgage brokerage and ensures we will be assisting residents of the Prairie region and beyond with their home purchases for many years to come.