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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.

PurView Discount Still Available

The discount field will be available from within the eStore which means subscribers can top-up 50 reports with their credit card and apply their discount code directly within Purview. Once the transaction is completed their additional reports will be available immediately.

For direction on how to top up and view your dashboard, please refer to the following video.

Pineapple Rate Sheet

Click here to access the current rates.

Did you know that there’s a new GROUP called 

Lender Promos and Policy Updates in MyPineapple that has live feed updates of Lender Promos and Policy changes?  

We’ll always keep you up to date weekly here in the Squeeze with the best promos we’ve received, but you can also find a running list right on MyPineapple.

Policy Updates

First National:

Outstanding Tax Balances

  • The outstanding income tax balance has changed. The new tolerance level is the lesser of:  5% of Line 15000 on the most recent NOA; OR  $5,000 
  • Outstanding taxes greater than the tolerance must be confirmed paid. 
  • This threshold applies regardless of whether the NOA is being used to confirm income or not. 

Maternity/Parental Leave

In addition to a letter of employment confirming the borrower is currently on maternity/parental leave, this income must also be supported by: 

The most recent year-end pay stub; OR  The most recent T4

Non-Taxable Private Pension

If the pension income is non-taxable, one of the following is acceptable: 

  • Current letter from the organization providing the pension income outlining that the income is nontaxable. 
  • Current bank statement showing two months deposits coinciding with the annual income being used for qualification and proof that the income is non-taxable. 
  • Current pay stub confirming the income being used to qualify.

Long Term Disability

In addition to a letter from the appropriate agency or insurance company confirming long-term or permanent disability, this income must now be further supported by: 

A current pay stub; OR  Two months of direct deposit history

Canada Child Benefit

  • CCB income cannot exceed 50% of the total income used to qualify. This has increased from 30%.
  • CCB income can only be used for children 15 years of age or younger.
  • The minimum age has increased from 12.

Short Term Disability
In addition to a letter of employment outlining the borrower(s) return date, position, and salary, this income must now be further supported by:
A current pay stub; OR Two months of direct deposit history

Taxable Pension
The distinction between public and private pension documentation requirements have been removed. Both pension types are now supported by the same documents.

  • If the borrower receives a taxable pension (i.e. CPP, OAS, Private Pension), one of the following documents is required to confirm the pension amount:
  • Most recent T4 / T4A

o Previous year-end pay stub o Most recent NOA

  • In addition to the annual document, one of the following documents is also required in order to confirm that the income stream continues to be received:
    o Current pay stub
    o Two months of direct deposit history
  • If the borrower has not been retired for a full tax year, the income can be supported by:
    o A current letter from the organization providing the pension benefit; AND
    o Current pay stub or two months direct deposit history

Closing Docs
Documentation confirming closing costs must align with down payment confirmation requirements, whereby a 90-day history is required.

TD:

As a reminder, the temporary measures announced on June 24, 2020 in response to the COVID-19 pandemic in order to facilitate the signing of credit applications for customers in a non-face-to-face interaction continue to remain in place for all broker submissions until further notice.

Your electronic signature technology can be used to complete and sign the Broker Application and Broker Commitment Letter only. This does not include gift letters.

What you need to know:

  • The Identification Requirements for Remote Signing (attached) is for your internal use only – do not share with customers.

We appreciate your ongoing support as we remain committed to serving our customers.

Contact
If you have any questions, please contact your Regional or Inside Sales Manager.

Promos

RFA:

New – 60-day quick close promo rates starts today on our full featured products.

  • Pays up to 125bps. (115bps finder fee + 10bps efficiency bonus).

Insured or Insurable at 65%LTV or less:

  • 2.75% (P-0.95%) – 5 year ARM
  • 5.04% – 5 year fixed

3.50% (P-0.20%) – uninsurable: for refinances, 30 year amortization or purchase price exceeds $1Million.

Insider Insights – Adjustable Rate Mortgages

RFA has an Adjustable Rate Mortgage where payment fluctuates with the movement of prime.

  • This product helps to maintain the original amortization schedule ensuring the client’s payment always includes a portion towards principal reduction.
  • Clients may capitalize on further principal reduction by taking advantage of their pre payment privileges by increasing payment
  • Compounds semi annually
  • 20/20 annual prepayment privileges
  • 3 month interest payout penalty
  • Conversion: client may convert their ARM mortgage rate to an eligible closed 5 year fixed mortgage rate offered by RFA at time of conversion request.
  • RFA Prime rate currently 3.70%

ARM Payment changes:
Notice goes out to clients within 72hrs via email OR mail. Client’s NEXT payment will be reflective of the prime change, unless that payment occurs within 5 days of the prime rate announcement.

ARM Conversion:
Client may convert their variable interest rate mortgage to an eligible closed 5 year fixed interest rate mortgage offered by RFA, at any time without penalty.
The client will sign a renewal agreement which will contain all of the amended terms and conditions of the new mortgage.
Please note clients may not convert if mortgage is in default.

CMLS:

Did you know about CMLS Uninsured 5 Year ARM 30 Year Amortization available on Purchase & Refinance Currently @ P-0.50 Paying 100BPS ( Minimum Credit score 680 all App)

  • Max GDS/TDS 39%/42%
  • LOC Payments for qualifying based, HELOC payment calculated at the approved limit and BOC rate amortized over 25 years, Unsecured LOC payment calculated at 3% of outstanding balance
  • Occupancy: Owner Occupied, Second Home, and Vacation Property (Type A four-season with all year access)
  • No use of rental add-backs or spreadsheet,
  • No Specialty Programs: No New to Canada program, No Flex Down

Did you Know at CMLS we are still offering 5 Year ARM @ P-0.90 ( Under Preferred Customer Program) available on Purchase & Transfer ( HR & Insurable only regular product):

  • HR & Up 65% LTV: P-0.90% Paying120BPS
  • 65.01% LTV to 70% LTV: P-0.70 Paying 120BPS
  • 70.01% LTV TO 80% LTV: P-0.50 Paying 120BPS

Here is Guideline for Preferred program for the above VRM Rate:

  • Preferred Customer Program must be requested in notes, along with the term, rate and any buy-down you want to apply.
  • Min Beacon: HR Insured: 660 all applicants Low Ratio Insurable: 720 for one applicant & min 660 any other applicant
  • Un-Insurable 680 all applicants
  • Max GDS/TDS 39%/42%,
  • Min 12-year amortization. // Min SFD square footage > 850 LOC Payments for qualifying based on: HELOC payment calculated at approved limit and BOC rate amortized over 25y Unsecured LOC payment calculated at 3% of outstanding balance
    Occupancy: Owner Occupied, Second Home, and Vacation Property (Type A four season with all year access)
  • Verified Income Only: Income Documents must be dated within 30 days of submission. No Stated Income, min 3 years in business if BFS, No Gross up of BFS income.
  • No use of rental add-backs or spreadsheet,
  • No Specialty Programs: No New to Canada, or Flex Down
  • Maximum rate buy-down: is 20bps
  • Remember that a property purchased for under $1 million is eligible for Insurable pricing on straight transfer still, provided the purchase price is less than 1 Million post November 2016 ( Doesn’t matter how many time after purchase the property was refinanced ) – and a property that was purchased prior to November 2016 (even if they paid over a mil) could still be Insurable!

Essential Tutorial Videos

Lead Management and Exceptions

Emerson discusses Managing Leads. He explains the importance of entering information into MyPineapple, the difference between a deal and a lead and why it is important to be able to differentiate the two. He shares that developing trust, getting to know your lead, and asking relevant questions are vital when building a relationship with clients. Making promises, utilizing tasks, due dates, and creating a next touch point is essential and will result in a missed opportunity if not followed through.

What You’ll Learn

  • The difference between a deal and a lead.
  • Why it’s important to get to know your lead when building a relationship with clients.
  • Utilizing tasks, due dates, and creating a next touch point.

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 and 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