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Underwriting Updates

Pineapple works with over 40 lenders plus the big banks. Get lender updates, rate announcements, and more from our dedicated Underwriting Department.

Pineapple Rate Sheet

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Policy Updates

TD:

To: All Brokers

Further to the policy improvements that we launched on May 19 and May 26, 2022, we are have some additional changes to share in order to help ensure our policies are aligned to changing market conditions and customer expectations. 

The following policy changes take effect on June 2, 2022:

Streamlining our Income Confirmation Policy  

We have streamlined requirements within the Income Confirmation policy: 

  • Pension (Private/Public) and Fixed (Salaried) income:
    • Now follow the same requirements as Fixed (Salaried) Employment Income, whereby one (1) current income document is required. However, if a customer does not hold an active TD Mortgage or Home Equity FlexLine at the time of application (referred to as “New to RESL”) then an additional Annual Income document is required.
  • Letter of Employment (LOE): Simplify requirements by removing the need for: 
    • Employer’s address and phone number. 
  • Canada Child Benefit (CCB) and Foster Care income:  
    • Allow 100% use of CCB or Foster Care income; however, amount used must represent no more than 50% of Total Application Income.
    • Age restriction for CCB income is changing from 13 to 15 years old and only verbal confirmation of child(ren)’s age is required and documented in submission comments.  
  • Spousal/Child Support income:
    • Separation agreement/court order will no longer be required if spousal/child support income is confirmed via Notice of Assessment and T1 General plus one (1) current Direct Deposit for conventional credit applications. Note: Direct Deposit can include cheque deposit or email money transfer.
  • Outstanding Canada Revenue Agency (CRA) tax liability
    • The allowable level of outstanding CRA tax liability has been changed to 5% of Line 150/15000 to a maximum of $5000.
  • Direct Deposit Pay:  
  • Variance allowance between lowest and highest pay is increasing from 10% to 20%.
  • Maternity/Paternity Leave income:
    • In addition to the LOE, a year-end paystub or T4 will now be required. 
  • Social Assistance:
    • Provincial disability support payments (e.g., Ontario Disability Support Program [ODSP]) that can be confirmed as permanent income can now be used as debt servicing income. 

Simplifying rules for our Business for Self Policy

To help make the policy easier to understand and to increase loan financing amounts, we will be simplifying the following Income Gross-Up rules on Business for Self Conventional applications: 

  • Maximum Loan to Value (LTV) will be available up to 80% (up from 75%) in situations where income is grossed up as high as 20%. Reminder: All Business for Self applications where an applicant’s income is grossed up require rationale. 
  • Business for Self Conventional applications will be eligible for Standard Appraisal processing.

New to Canada and Returning to Canada Policy 

  • New to Canada and Returning to Canada Conventional applications will be eligible for Standard Appraisal processing.

Why are these changes being made?

As part of our efforts to remain competitive in the industry, we review our policies on a regular basis to ensure that our offerings meet the evolving needs of customers. We are committed to providing you with the right information and support to help you build deeper customer relationships.

Additional information

The following sections of the Broker Information Kit will be updated with this information. Please familiarize yourself with the changes:

  • Income Confirmation   
  • Business for Self – Conventional and Insured with Traditional Income Confirmation
  • Business for Self – Insured Without Traditional Income Confirmation (Sagen/Canada Guaranty Only) 
  • New to Canada and Returning to Canada – Conventional

Merix/Lendwise:

Hello Broker Customers, 

We are pleased to announce that we have recently made many policy enhancements! These changes are to our property valuation processes, Uninsured program and more. For your convenience, the key updates have been outlined below.

We anticipate these enhancements will greatly improve the broker and homebuyer experience and make it easier to do business with us!

PROPERTY VALUATION UPDATES

➥ Automated Valuation Models (AVM)     
We are pleased to offer AVMs for Uninsured files. Accelerated loan decision process & reduced borrower costs!   
➥ Solidifi AMC     
Along with RPS and NAS, Solidifi has been added to our list of approved AMCs. 
➥ Order Appraisals Direct     
Brokers can order directly from our Approved Appraisers List. ​​​​​

​​​​​​

UNINSURED PROGRAM UPDATES

➥ Extended Rate Hold & Better Rates     
120 day rate holds are now available on live files. Premium for rentals is now 10 bps (formerly 60 bps).    
➥ Switch/Transfers Availability     
Standard & Collateral Switch/Transfers now available for Uninsured files, including Rentals.     
Reminder: Uninsured Rentals are now available in AB & SK!

➥ Agricultural Land Reserves (ALR)     
Uninsured policy now includes Agricultural Land Reserves if primary residence and no business income is being generated from the property.​​​​

➥ Updated Eligibility Criteria     
GDS/TDS Max 39%/44% (regardless of deal purpose/occupancy). LTV Max 80% for Rental & Non-rental Properties.

➥ BFS Add-Backs     
Borrowers with min 650 beacon may add back: Business Use of Home, Capital Cost Allowance (CCA), and Motor Vehicle Expenses.

➥ Tax Grant Programs     
The amount of the tax grant may be applied to calculate the net property tax (previously the gross tax amount was used for Uninsured loans)

Please note the maximum loan amount forUninsured Rentals is $500k.
ADDITIONAL POLICY HIGHLIGHTS

➥ Expanded Lending Areas     
Now with more flexible minimum population requirements.

➥ Standardized Heating Costs     
For condos: greater of $50/month or ($0.40 x sq.ft)/12 All other properties: greater of $100/month or ($0.60 x sq.ft)/12

➥ Acreage Lending Updates     
Now permits value of house plus 15 acres.

➥ Maximum LTV in British Columbia    
In Victoria*, LTV Tier Limit for single family dwelling or townhouse is up to 80% of $1,800,000 (previously $1,500,000) and 60% thereafter. For the Rest of BC, LTV Tier Limit for single family dwelling or townhouse is up to 80% of $1,250,000 (previously $1,000,000) and 60% thereafter.
*Victoria is defined as Central Victoria, Esquimalt, Colwood, Cordova Bay, Langford, Methchosin, Oak Bay, Saanich (East, Central, North, West, Saanichton), Sidney, and View Royal*

​​​Please note MERIX does not provide financing forproperties over 50 acres or hobby farms.

ICICI Bank:

ICICI Bank Canada: Important Notice

Dear Partners,

We value your contribution towards supporting ICICI Bank with your mortgage deals. With an aim to provide highest order of customer experience, we would like to introduce below changes to ensure file completeness before the closing date:  

  • Solicitor Instruction will be sent on condition that the file is broker complete 5 business days prior to closing.
  • If the file remains incomplete 5 business days prior to closing , the closing date will be extended . 
  • ICICI Bank Canada reserves the right to adjust the interest rate.

Implementation date 

  • Refinance and Transfer on June 1, 2022
  • Purchase on September 1, 2022

Promos

RFA:

Hi Pineapple and team,

Sales tips:

Condos to 80% LTV on refinances or purchases (rentals or owner-occupied)

Expanded lending areas!

Current Promo: 20bps extra comp on Alternative deals if the beacon is 500-599, (below commissions have the extra 20bps included).

  •  90bps on a 1 year
  • 100bps on a 2 year and
  • 120bps on a 3 year term.

Extended ratios available to 65%.  See our extended ratio credit matrix on our website: https://www.rfa.ca/alternative

4.69% – Income Qualified, pays 50bps or

  • 4.89% pays 70bps (your choice).
  • 1 year term, purchase or refinance.
  • Up to 50/50% ratios
  • Beacon 680+
  • 80% LTV
  • Owner/occupied condos or homes
  • Also available, 2 and 3 year fixed rates.

`4.94%  –  BFS stated income, pays 50bps  

  • 5.14% pays 70bps (your choice).
  • 1 year term, purchase or refinance.
  • Up to 50/50 ratios
  • Beacon 680+
  • 80% LTV
  • Owner/occupied condos or homes.  
  • (6 months of bank statements & BFS Attestation form (see attached copy) and business registration)
  • Also available, 2 and 3 year fixed rates.

Live deals only, no pre-approvals.

Turnaround 24-48 hrs

Dedicated underwriting by senior underwriters

Full featured products

No bona fide sales clause.

See our Alternative website for a quick overview of above. https://www.rfa.ca/alternative

Good day!

Financial markets are reacting to yesterday’s announcements by the Bank of Canada, leading to bonds yields increasing to a 2.937% (currently) from yesterday’s close of 2.876%. In this sensitive rate environment I would encourage you to submit your files as rate increases will be on the horizon.

An excellent article was published on Canadian Mortgage Trends, please click on the link to read.

Hawkish Bank of Canada announcement fuels rate hike expectations – Mortgage Rates & Mortgage Broker News in Canada (canadianmortgagetrends.com)

Current Promotions!

Up to $2500.00 Cash back Offering! Compensation up to 125 bps! (115 bps Finders Fees + 10 bps Quarterly Efficiency Bonus)

Details: 

Available for Transfers and Refinances

Fixed and ARM

Effective June 1st

Promo Code “ Summercash”

Cash back is given to the client 2-3 weeks post funding directly to their bank account via EFT.

*Frontline worker promo cannot be combined

Loan AmountCash back
$150,000- $299,999
$300,000- $499,999
$500,000- 749,999
$750,000 +
$500.00
$750.00
$1000.00
$2500.00

DUCA:

DUCA Broker Services Policy and Guidelines

  • Additional towns added to our GTA sliding scale and increased lending in urban and non-urban areas
  • PLUS: Now accepting 50% CCB income on Non-Conforming deals. Confirmation of child’s age is required. Must be eligible to receive for at least three years.

Also, still qualifying Non-B20 Compliant files on our Conforming (A) side at contract rate + 1% and all Non-Conforming (B) side files at contract rate only!

DUCA Qualification Options

Conforming Mortgages

Insured/Insurable mortgages 

  • Insurer Guidelines apply
  • Qualified at greater of benchmark (5.25%) or contract + 2.00%

Conventional Uninsured mortgages

  • B20 Compliant: Qualified at greater of benchmark (5.25%) or contract + 2.00%
  • B20 Non-Compliant: Qualified at contract rate + 1.00%

*Add 5 bps to rate for amortizations greater than 25 years for both B20 Compliant and B20 Non-Compliant mortgages.

Non-Conforming Mortgages

Near Prime, BFS, Bruised Credit

  • Contract Rate only
  • Can use 30 year amortization with no rate premium

 ___________________________________

Please remember that we do not offer pre-approvals or finance rental properties.

RMG:

Good Afternoon Everyone,

Just wanted to send out a quick email to advise that RMG can now offer Collateral Transfers on 3 and 4 year Regular Fixed Terms. Previous to this the RMG Collateral Transfer program was exclusive to 5 Year Terms.

Friendly reminder about our Switch Program – both Standard and Collateral Switches/Transfers:

  • Yes, you can you combine a multi-components mortgage into one charge!
  • Yes, you can remove/add borrowers at time of transfer!
  • Yes, you can leave an existing HELOC in 2nd position available for clients to access, while still transferring over a standard mortgage charge!
  • Yes, you can increase amortization (processed as an uninsurable collateral switch; max LTV 80%)
    • Did you know our minimum amortization is only 5yrs?!
  • Yes, you can combine more than one charge
  • Yes, you can qualify at contract rates on Insured (funded pre November 30, 2016)  and Insurable (funded pre October 16, 2016)
  • RMG covers the cost of legals, and pays up to $250 in current lender discharge for a standard charge (we will adjust pricing adding 5 bps to rate and taking 10 bps off the finders for a Collateral Transfer)
  • You can capitalize up to $3k
  • YES! YOU CAN USE CASHBACK PROCEEDS TO PAY THE PENALTY and/or PAY DEBTS!
  • That’s right we can use cashback funds to reduce TDS, as FCT can  facilitate the payout of debts and penalty at time of funding allowing your clients more Peace of Mind!

Last but not least … please don’t forget some of the cool things that comes with dealing with RMG:

  • We allow 100% of Child Tax Credit (No Cap!!) amount will continue for 3yrs post funding
  • We allow short term and long term disability income
  • We have an amazing 3% Cash Back product, see the Peace of Mind brochure attached, get the conversation away from rate!!
  • We have the one of the best Switch/Transfer programs in the industry:
    • Allowing standard or collateral transfers (with Cash Back up to 3%!!)
    • Allowing covenant change (add or remove someone upon transfer, some restrictions may apply)
    • Extend amortizations on conventional Switches up to 30 years
  • We have one of the best Purchase Plus Improvements programs in the industry:
    • No receipts required if over $15,000
    • And you can offer 3% Cashback so they have money to start improvements immediately!
  • We have the Appraisal Rebate Program, and we also off an AVM program at our cost! 
    • RMG has a list of appraisers for you to choose from; you can choose your own appraiser or use one of the popular appraisal ordering services.
  • RMG offers 39/44 debt-service ratios
  • RMG allows ALL our clients to pay their own property taxes – it’s an option that’s available on our commitments; this applies to all high-ratio mortgages too.

Please contact me anytime with any questions or more details on any RMG Programs/Products.

Thank you for choosing RMG!

Rate Buy Down Tool has been attached in assisting with:

  • Providing the minimum beacon scores required per transaction type
  • Listing of total compensation should you wish to buy the rate down further

As a reminder, all of RMG’s rate holds are for 120 days

5 Year Regular Fixed Promotion (120 day Rate Hold):

  • High Ratio 4.29% paying 110 bps + 15 bps Incentive = 125 bps
  • Insurable up to 65% LTV 4.29% paying 110 bps + 15 bps Incentive = 125 bps
  • Insurable 65.01-70% LTV  4.44% paying 110 bps + 15 bps Incentive = 125 bps
  • Insurable 70.01-75% LTV  4.59% paying 110 bps + 15 bps Incentive = 125 bps
  • Insurable 75.01-80% LTV  4.59% paying 110 bps + 15 bps Incentive = 125 bps
  • Uninsurable with a 30 yr. am 4.84% paying 110 bps + 15 bps Incentive = 125 bps

5 Year Regular Variable Rates (120 Day Rate Hold):

  • High Ratio P – 0.90% paying 110 bps + 15 bps Incentive = 125 bps
  • Insurable up to 65% LTV P – 0.90% paying 110 bps + 15 bps Incentive = 125 bps
  • Insurable 65.01 – 70% LTV P – 0.75% paying 110 bps + 15 bps Incentive = 125 bps
  • Insurable 70.01 – 75% LTV P – 0.55% paying 110 bps + 15 bps Incentive = 125 bps
  • Insurable 75.01 – 80% LTV P – 0.55% paying 110 bps + 15 bps Incentive = 125 bps
  • Uninsurable with a 30 yr. am P – 0.20% paying 110 bps + 15 bps Incentive = 125 bps

5 Year Regular Peace of Mind Cash Back (120 Day Rate Hold):

5 Year LRB Fixed Promotion (120 Day Rate Hold):

  • High Ratio 4.29% paying 110 bps
  • Insurable up to 65% LTV at 4.29% paying 110 bps
  • Insurable 65.01-70% LTV at 4.44% paying 110 bps
  • Insurable 70.01-75% LTV at 4.59% paying 110 bps
  • Insurable 75.01-80% LTV at 4.59% paying 110 bps

5 Year LRB Variable Rates:

  • High Ratio P-0.95% paying 120 bps
  • Insurable up to 65% LTV at P -0.95% paying 120 bps
  • Insurable 65.01-70% LTV at P -0.80% paying 120 bps
  • Insurable 70.01-75% LTV at P -0.60% paying 120 bps
  • Insurable 75.01-80% LTV at P -0.60% paying 120 bps

RMG Standard Mortgage Rate Buy Down is .05 off rate for 20bps off base commission (max rate reduction of .20)

RMG LRB Mortgage Rate Buy Down is .05 off rate for 10bps off base commission (max rate reduction of .10)

Customer Service: MortgageSupport@RMGmortgages.ca or call 1.866.809.5800

Disclaimer – Please note that every attempt is made to ensure the accuracy of the rate scenarios presented above. It is recommended that you further check Gateway for RMG Promo, Published Rates and qualification details. Any formal PDF communication will supersede an error made from the buy down scenarios presented in this email.

Desjardins:

What’s new?

  • Refinance conventional owner-occupied mortgage $750,000 and over as low as[1] – applicable to new applications submitted on or after 2022-05-27 – subject to eligibility[1]
  • 5 year closed fixed 4.39%[1]  commission paying 110 bps
  • 5 year reduced variable P – 0.60%[1]  commission paying 110 bps
  • 5 year protected variable P – 0.40%[1]  // ceiling (payment) rate 4.74%[1]  commission paying 110 bps
  • 40 month closed promo 4.09%[1]  commission paying 75 bps – must fund prior to July 31, 2022
  • Versatile line of credit with linked mortgages P + 0.35%[1]
  • Cashback promo up to $1,200[1]
  • Compare our Mortgages | Desjardins

Essential Tutorial Videos

Pineapple Rate Sheet

Emerson discusses the Pineapple Rate Sheet going through the sheet in detail and shares that it is always best for an agent to do what is best for clients.He goes through He explains . He shares He He ends the call by answering questions. Please refer to the related tab of this article to access the slide deck.

What You’ll Learn

  • What an insured rate is and what it entails.
  • Details about insurable rates and the criteria under which these rates are assessed.
  • The max LTV percentage that lenders adhere to was also reviewed.
  • Further explanation on uninsurable rates and how risky it is for lenders.

Debt Consolidations: HELOCs

Emerson takes us through Debt Consolidation: Home Equity Line of Credit (HELOC).

What You’ll Learn

  • What a HELOC consists of
  • Questions you should ask your clients when discussing HELOCs

The New Underwriting Process

Emerson shares a high-level overview of the updated underwriting process. 

What You’ll Learn

  • The new 9 step process for submitting your deal.
  • The importance of having your docs before submitting them to underwriting.
  • The new timelines that have been implemented into the Underwriting Process.

Utilizing Equity In Your Home

Emerson takes us through utilizing the equity in your home. Equity is the difference between the value of your home and how much you owe on your mortgage.

What You’ll Learn

  • There are two ways to build equity, the first is paying down the mortgage and the second is an increase in the property’s value.
  • How to use the equity in your home. He then goes through a real-life case study.

Mortgage Switch / Transfers

Emerson Munsayac takes us through Switches ve Transfers. He kicks off the meeting by explaining that a switch/transfer is when a client decides to move their mortgage from one lender to another.

What You’ll Learn

  • The difference between a mortgage switch and transfer.
  • How to utilize the calculators within our PineappleDOS system