Rental Solutions

Alt-A Program

Rentals up to 80% LTV on the first $1.5M and 50% on the remainder in large markets. Consideration may be provided to Rentals in small markets that are within close proximity to a large market

Max 30 Year amortization

Max 55 GDS/55 TDS

Purchase and Refinance eligibility

Non-Subject 80% offset

Add back subject rentals (80%)

Max $500K Rental Income

Short-term rental properties for non-subject Income can be used to qualify with 2 years history

We do not finance short-term rental properties

Min 30K population. Consideration may be provided to locations that do not meet population requirements, but are in close proximity of a large market

Loan purpose

• Purchase and Refinance

Maximum LTV

• 80% LTV

Property types

• Single family detached (minimum 800 square feet)

• Semi-detached (minimum 800 square feet)

• Condominium or apartment (minimum 500 square feet)

• Recreational properties

Lending areas

• Lending areas within 50 km of a large urban population centre (communities with populations > 50,000)

Minimum beacon score

• 600 Beacon

Terms

• 1, 2, 3, and 4 year fixed rate (up to 30 year amortization)

• 5 year variable (up to 25 year amortization)

Minimum loan amount

• $100,000

• $75,000 in Atlantic Canada

Maximum loan amount 

• $750,000

Qualifications

• The greater of the mortgage contract rate plus 2% or the 5 year benchmark rate

Down payment

• Minimum 20% for purchases

• Consideration given to gifted down payments

Notes 

• Home occupied by an immediate family member or intended use of the borrower is for 50% year round occupancy

• 25 year economic remaining life on property

• Statutory declaration to be signed at the solicitors

Prepayments

• Early payouts permitted (may be subject to charges)

• Opportunity to make an annual payment up to 15% of original mortgage amount, or increase monthly payment up to payment amount at any time

• Prepayment charge is calculated as the greater of 3 months interest or the interest rate differential (using  posted rate, not bond rate) plus 1% of the mortgage balance

• Mortgage is portable based on client and property qualification

• Fixed rate : The fee amount corresponds to 1% of the prepayment amount plus the higher of the following two amounts:
  3 months of interest calculated on the prepayment amount at the posted rate for the loan described below;
  The sum of the following 2 amounts:

• 1 month of interest calculated on the prepaid amount at the posted rate for the loan, up to a maximum amount of $500; and

• The interest differential: The interest differential is the discounted value (calculated at the standard rate indicated below) of the excess of the interest which the prepaid amount would earn at the posted rate for the remaining term of the loan over the interest which the prepaid amount would earn during the same period at the standard rate indicated below.

• Variable rate :
  The fee amount corresponds to 3 months of interest, calculated on the prepaid amount at the standard interest rate in effect at the Bank on the calculation date for a variable-rate loan of the same type as the loan plus 1% of the prepayment amount

Consideration given to

• Discharge and bankruptcies with 12 months re-established credit

• Applications demonstrating orderly payment of debts

Outside our lending guidelines

• BEACON/FICO scores less than 500

• Unique properties

• Previous grow-ops

• Rent-to-own contracts

• Farms

• Mobile homes and/or manufactured homes

• Rental pools

• Cooperative housing

• Indigenous reserve land