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PURCHASE & REFINANCE WESTERN CANADA PRODUCTS CATALOGUE
FINDER’S FEE PROGRAM • RESIDENTIAL LENDING GUIDELINES • REFINANCE GUIDELINES • VARIABLE RATE MORTGAGE FIXED RATE MORTGAGE • INTEREST ONLY MORTGAGE • THE ULTIMATE ONE, TWO MORTGAGE • 1+1 OPTION
www.equitabletrust.com
Finding the Right Mortgage for Purchasers & Borrowers
Purchases • Variable Rate Mortgage • Fixed Rate Mortgage • Interest Only Mortgage • The Ultimate ONE, TWO Mortgage • 1+1 Option Refinances • Variable Rate Mortgage • Fixed Rate Mortgages • The Ultimate ONE, TWO Mortgage • 1+1 Option
The Equitable Trust Vantage Point – Making Home Ownership Even More Attainable
Equitable Trust is providing more flexibility in its credit and product guidelines to assist your purchasers and borrowers in their home ownership dreams. Count on the fact that we’re flexible when it comes to underwriting loans for a wide range of credit profiles. Your application won’t be prejudged. Listening and reading between application lines, as well as analyzing beyond beacon scores, gives us a workable solution for your purchasers’ or borrowers’ needs. Widening opportunities to accommodate brokers includes our new GDS/TDS conventional requirements of 50/50 and our offering of an amortization period up to 40 years. Equitable Trust offers mortgages for: • Imperfect credit applicants • Discharged Bankrupts • Business for Self (No NOA’s, self-declared income) • New Immigrants Property types for consideration include: • Single family homes • High-rise or low-rise condominiums, lofts • Detached, stacked or condominium townhouses • Luxury custom built homes Financing Available for: • Purchases • Refinances • Equity Deals • Large Loans
Innovative Gemstone Credit Matrices – Equitable Trust’s Underwriting Process
Our Gemstone Credit Matrix is extremely easy and uncomplicated to use. It’s applied to all of our borrowers on individual single family residential mortgage products. Beacon scores are important in the overall credit adjudication process but we believe that there’s more to lending. That’s why we’ve taken a balanced approach to be flexible and open to the credit realities of your client’s past history and their potential for the future. Our credit matrix has been designed with clients in mind who are like precious gemstones – each having their own “credit personality,” different in background, strength, and quality of credit. Each client will possess a history that will determine the level of their credit under our categories of precious gemstones: beginning with Diamond, Sapphire, Pearl and finally Amber. For example, if your client is deemed in the Diamond category, he/she will have fewer credit impurities, therefore the rarer the imperfections the higher the grade assignment. Our Sapphire client is similar to the Diamond in that its quality of clarity is still quite good. The Pearl is a valuable semi precious gemstone which has flaws that are fairly common in its strength. And finally, due to its properties, the Amber stone has to be treated more delicately.
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933 - 17th Avenue S.W., Suite 501, Calgary, AB T2T 5R6 T. 403.440.1200 F. 403.440.1201 Toll Free 1.866.940.1201 Toll Free Fax 1.888.440.1201
www.equitabletrust.com
Capitalization of Fees
Your clients can take advantage of adding their commitment fee to their conventional mortgage amount up to 80% loan to value (LTV). This is a great feature for fee-sensitive clients and it provides more choice. Clients can choose to have their fees capped, pay it up-front with the signed commitment, or opt not to have it capped and simply deduct the fee from the advance. This benefit applies to both purchases and refinances. Call one of our Residential Mortgage Underwriters to discuss capped fees.
Residential Lending Guidelines
Looking for a mortgage? You’ve come to the right place. Here at Equitable Trust, you’ll find a variety of mortgage products to suit your client’s financial circumstances for both purchasing and refinancing. We provide financing for single family dwellings and multi-unit residential units (up to 4 units). Below you’ll find our LTV limits as well as guidelines to help you select the right product. LTV limits are as follows: Purchase Refinance Owner Occupied 80% 80% Rentals 65% N/A
• High-rise condos, stacked condos and non-arm’s length (private) transactions are subject to lower LTVs. • Lend on the security of first mortgages on residential real estate. • Provide mortgage financing for large properties and luxury homes. Applications for large properties must be accompanied by detailed information packages. • Well, septic and Rental Properties may be subject to a reduced LTV and alternate pricing. • Proof of source of down payment is required on a purchase. • Rates and terms are subject to change on larger loan amounts. • A pre-payment privilege of 20% on the anniversary date. Equitable Trust requires the following to approve a mortgage: • A complete mortgage application. • A satisfactory credit report. • An MLS listing (if applicable). • An Agreement of Purchase and Sale.
Refinance Guidelines
Does your client need to renegotiate their existing mortgage agreement to increase the principal or pay out the mortgage in full? Take a moment to check out Equitable Trust’s refinance products. Clients refinance for a variety of personal and financial reasons. Most homeowners will consider refinancing their mortgage to take advantage of lower interest rates by consolidating their debt and thereby reducing their household monthly payments. It allows them to pay off their old mortgage and sign a contract for a new loan. Whatever the reason, Equitable Trust has a wide variety of mortgages to suit your client’s needs. Our Credit Matrices also include the newest features and products for Refinances. On cash equity takeouts over $50,000, an additional 1/4% will be added to the rate.
Mortgage Rates
Mortgage rates and terms are subject to change without notice. To check the most current rates, go to www.cannex.com and click on Mortgages.
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933 - 17th Avenue S.W., Suite 501, Calgary, AB T2T 5R6 T. 403.440.1200 F. 403.440.1201 Toll Free 1.866.940.1201 Toll Free Fax 1.888.440.1201
www.equitabletrust.com
Finder’s Fee Program
In some instances a fee split may be paid in lieu of a Finder’s Fee. A fee split will apply to all open terms, in addition to several of our other products. Other exceptions may apply. Finder’s Fee 1 year 2 year 3 year 4 year 5 year Fixed Rate Mortgages BPS 50 60 80 90 110 Variable Rate Mortgages BPS 50 60 80 90 110 Interest Only Mortgages BPS Fee Split
Fixed Rate Mortgage (Conventional)
If you’re looking for a mortgage that doesn’t exceed 80% of the purchase price of a home, Equitable Trust has several options for your clients to consider. The Fixed Rate Mortgage allows your client to select a rate of interest that doesn’t change during the specific period of their 1 to 5 year mortgage term. Each program is open on the greater of 3 months interest penalty or interest rate differential. Single family, owner occupied dwellings are eligible for up to 80% LTV, with second mortgages allowed up to 90% LTV. A 10% down payment from your client’s own resources or from a gift is also required. Rental properties may be subject to a reduced LTV and alternate pricing. Rates and terms are subject to change for larger loan amounts. The Fixed Rate Mortgage has the greatest flexibility within the Purchase Product Credit Matrix for clients with a range of credit histories – from Diamond to Amber credit ratings. The allowable GDS/TDS is 50/50. The maximum amortization is 40 years.
Variable Rate Mortgage (Conventional)
With a Variable Rate Mortgage, your client is choosing a product where the interest rates will change with the prevailing market rates during the term of the mortgage. This is sometimes referred to as a floating rate mortgage. Single family, owner occupied dwellings are eligible for up to 80% LTV, with second mortgages allowed to 90% LTV. The LTV on high-rise condos is up to 75%. The Variable Rate Mortgage has several options for clients. Clients can select 1 to 5 year closed terms (3 and 4 year terms are open on 3 months interest penalty after the second year; a 5 year term is open on 3 months interest penalty after the third year). If a client decides to convert from a Variable Rate Mortgage to a Fixed Rate Mortgage, they can easily switch products without penalty as long as the term is equal to or longer than the remaining term of the original mortgage. Self declared letters as proof of income, coupled with some proof of the business’ existence, are accepted for self-employed clients and those individuals with some credit challenges. Rates and terms are subject to change for larger loan amounts. Rental properties may be subject to a reduced LTV and alternate pricing. The GDS/TDS requirements are 50/50. The maximum amortization is 25 years.
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933 - 17th Avenue S.W., Suite 501, Calgary, AB T2T 5R6 T. 403.440.1200 F. 403.440.1201 Toll Free 1.866.940.1201 Toll Free Fax 1.888.440.1201
www.equitabletrust.com
Interest Only Mortgage (Conventional - Purchase Only)
The Interest Only Mortgage is a straightforward and simple product that allows your client to pay only the interest portion of their monthly payments, freeing-up funds that would normally go towards paying off the principal. This product is available on purchases only. The Interest Only Mortgage offers up to 75% LTV. Secondary financing up to 90% LTV is permitted behind Equitable Trust’s first mortgage. The Interest Only Mortgage is suitable for self employed clients and those individuals with some bruised credit. This mortgage also appeals to domestic investors. Equitable Trust is flexible with the number of units that will be considered for financing. Equitable Trust’s Interest Only mortgage is unique as it offers more flexibility on proof of income than most other products of a similar nature. Rates and terms are subject to change for larger loan amounts. The term is one year closed, with a minimum loan amount of $100,000. The allowable GDS/TDS for the product is 50/50. This product offers 100% rent reduction. Rental properties may be subject to a reduced LTV and alternate pricing. Fee split only.
The Ultimate ONE, TWO Mortgage
Just a reminder of Equitable Trust’s newest product, the ULTIMATE ONE, TWO Mortgage on purchases and refinances. Only single family, owner occupied dwellings are eligible for up to 80% LTV. The Ultimate ONE year rate is 5.89% with a 600+ beacon score and a 2.5% Lender Fee. The Finder’s Fee is 100 BPS. The Ultimate TWO year rate is 5.99% with a 600+ beacon score and a 3.25% Lender Fee. The Finder’s Fee is 140 BPS. The term being offered on the ONE and TWO year is open on the greater of 3 months interest or $1000. Our Lender Fee of 2.5% or 3.25% can be capped to a maximum of 80% LTV. The product does not apply to commercial or rental properties. There must be 2 years of clean active tradelines and a minimum of 2 trades for at least 1 year. Any loans over $500,000 will be approved on a case by case basis. No low-rise or highrise condos permitted. Large urban areas only. The allowable GDS/TDS for the product is 50/50. All other equitable policies and guidelines apply.
1+1 Option
If you’re looking for the flexibility of open money but are hesitant due to the high costs, Equitable Trust has a truly unique option for you to explore, the 1+1 Option. Equitable Trust provides Fixed Rate or Variable Rate Mortgages as well as open and closed terms for our mortgages. In addition, we also provide an option on one-year Fixed Mortgages with the maximum LTV of 65%, where it can be open upon 30 days’ written notice and a one month interest penalty. The cost for this privilege is a minimum 1% premium on the posted one year rate and a low fee split structure. (See credit matrices.)
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933 - 17th Avenue S.W., Suite 501, Calgary, AB T2T 5R6 T. 403.440.1200 F. 403.440.1201 Toll Free 1.866.940.1201 Toll Free Fax 1.888.440.1201
www.equitabletrust.com
APPROVED APPRAISER LIST
Western Canada Approved Appraiser List
Calgary Appraisal Management Group........................................ 403.216.6803 Atkinson & Associates.................................................... 403.212.1103 MacDonald Copeland Appraisal Services....................... 403.282.3322 Price Aspinal Appraisals ............................................... 403.283.0197 SD Taylor ....................................................................... 403.519.9363 Turnko Inc. .................................................................... 403.607.5212 Edmonton Blackmud Appraisals..................................................... 780.991.4979 Cameron and Company.................................................. 780.487.0077 Cartwright Appraisals ................................................... 780.439.9650 Dundas Appraisals........................................................ 780.945.6565 Hagan Appraisal Services.............................................. 780.451.0022 Henderson & Butt Appraisal Consultant Ltd.................. 780.486.5158 Lethbridge Lethbridge Property Appraisal Ltd.................................. 403.329.9000 Reliance Appraisal Consultants..................................... 403.328.9351 Medicine Hat City Appraisal................................................................ 403.529.6200 Classic Appraisals......................................................... 403.529.2127 Red Deer Howard & Company Inc. ................................................ 403.343.7000 Soderquist Appraisals Ltd.............................................. 403.346.5533 Winnipeg Halladay Appraisal Services Ltd..................................... 204.981.1390 Pearson Appraisals ....................................................... 204.282.4000 Rixon Appraisal Services ............................................... 204.888.5566
SUBJECT TO CHANGE. REVISED MARCH 2008.
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933 - 17th Avenue S.W., Suite 501, Calgary, AB T2T 5R6 T. 403.440.1200 F. 403.440.1201 Toll Free 1.866.940.1201 Toll Free Fax 1.888.440.1201
www.equitabletrust.com
SINGLE FAMILY
RESIDENTIAL
933 - 17th Avenue S.W., Suite 501, Calgary, AB T2T 5R6 T. 403.440.1200 F. 403.440.1201 Toll Free 1.866.940.1201 Toll Free Fax 1.888.440.1201
www.equitabletrust.com
APPROVED APPRAISER LIST
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www.equitabletrust.com