Skip to content

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

Click here to access the current rates.

Policy Updates

TD:

The following policy changes take effect May 26, 2022:

Clarifying our Down Payment and Closing Costs Policy 

  • Updating the Closing Costs requirements to include Business for Self (BFS) conventional applications, and  
  • Ensuring that Closing Cost confirmation follows the same requirement as down payment whereby a 90-day history is required.

Additional information

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

  • Down Payment and Closing Costs 

In Canada, we have a regulatory framework for financial institutions. As part of this framework, federal regulators have recently introduced new consumer protection requirements that will take effect on June 30, 2022.

Appropriate Product Assessment Form

  • During your regular needs-based conversation, specific questions or topics must be discussed with the customer(s) to help ensure the appropriate TD Product is selected. The following questions to be discussed are captured in the attached detailed procedure:
    • Need or desire for ongoing access to credit, including ability to manage.
    • Understanding of product features, and customer level of comfort and importance around rate types.
    • Term length requirements, and future potential prepayment charges through home sale or refinance of existing product(s).
  • The new Appropriate Product Assessment Form is designed to capture the key discussion points.The customer must sign the form as acknowledgment of having a needs-based conversation with you, the Broker and their agreement to accept or decline the Broker’s recommendation. The customer may also acknowledge their decision to decline the needs-based conversation. Only one applicant is required to sign and acknowledge the form if they agree they are speaking on behalf of all applicants.
  • The Form will print along with the Broker Commitment for any deal submitted on or after May 30, 2022. 
  • Customer will need to sign the form prior to final fulfillment documents being released to the solicitor/notary/FCT Remote Signor. Note: If changes are made to product type, rate type, and/or term length, a new Broker Commitment Letter and Appropriate Product Assessment Form must be resigned.

Additional Information

  • The Broker Information Kit (BIK) will be updated with the attached information under a new section 3.2: Appropriate Product Assessment.
  • Broker training will be offered by your dedicated Regional or Inside Sales Manager to prepare for these changes
  • Additional Prohibited Conduct, Complaints Handling, and Whistleblower requirements and guidance will be shared in June.

Promos

RFA

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.

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.

RFA Talks – Purchase Plus Improvement:  Helping you to help your clients!

The Purchase Plus Improvement program is one of our top programs at RFA.  With housing prices at an all-time high, affordability concerns continue to plague Canadians.  The search for a clients dream house may be one step closer by utilizing RFA’s PPI program!  Many clients and referral sources either don’t know or don’t remember that it is available. That is where you come in!!

Here are some ideas to mention to your referral partners and your clients!

  • Payment security- Eliminates carrying additional improvement debt on LOC’s or credit cards. Less stress!
  • Improvement Ideas:
    • New home builds – Many clients will typically need additional financing for basement development, landscaping, fences and detached garages
    • Existing homes – Basement development, flooring, kitchen upgrades, bathrooms, upgrading to energy efficient windows, roof etc.!
    • Improvement must add value to the clients home – Chattels such as hot tubs etc. will not be included

Here is what you need to know:

  • Insured/Insurable Loans
    • Maximum of 20% of the “ as improved” value, as supported by the insurer.
    • CMHC – maximum of 10% of the improved value
  • Uninsured – Maximum of the lesser of 20% of the “initial” value or $40k
  • Work to be completed within 180 days
  • Improvements
    • Greater than $15k will require final inspection to show work is complete
      • Inspection may be completed from our approved appraiser list located on our Prime Resource centre @ RFA Prime | RFA .  Alternatively you may also use NAS, Solidifi, FNF, RPS (Brookfield)
    • Less than $15k will require paid invoices, from completing contractor confirming the improvements were completed as per original quotes, along with before & after photos
  • The full committed mortgage amount will be advanced to the solicitor at closing with instructions to hold back the cost of improvements until confirmation work has been completed.

Current RFA Promotions:

Uninsured Promo: Now Paying 145 bps on ALL 5 year Uninsured applications – Limited time ONLY! ( Insider Efficiency bonus not applicable during promotion period)

5 year Uninsured Plus: (not available for rentals/second homes)

4.79% paying 145 bps

4.69% paying 105 bps

4.64% paying 85 bps

5 year Uninsured Standard: (not available for BFS)

4.89% paying 145 bps

4.79% paying 105bps

4.74 paying 85 bps

*Please contact me for sliding scale information

Current RFA Rates:

 5 year Insured and ≤ 65% Rates:

ARM: P-.95%

Fixed: 4.14%

*10bps Quarterly Efficiency Bonus applicable on all rates and terms

Equitable Bank:

Our lower reverse mortgage rates just got even better

Secure your clients a 25 bps discount on our already lower reverse mortgage rates. 

If you have clients considering a reverse mortgage, it’s a great time to apply. Our limited time 25 bps discount is available on new applications only, submitted between May 19th through June 1st, 2022, and funded by July 31st, 2022.

Discount applicable on Equitable Bank’s (EQB) posted 5-year fixed rate Reverse Mortgage Flex product only.

See the difference our lower rate can make

When comparing our 5-year fixed reverse mortgage with a non-Equitable Bank reverse mortgage your clients could save over $13,000 after 5 years and over $40,000 after 10 years (on a $400,000 reverse mortgage.)

 5-Year Fixed Origination Rate55-Year Fixed Reset Rate5
EQB Discounted   5-Year Flex Rate  6.49% (6.49% is a 25 bps discount on the current posted rate of 6.74%) 6.79%
Non-EQB Rate6.99%7.34%

Industry Updates

CMLS:

Good Morning Broker Partners. 

Are house prices falling? Every article I’ve read in the past 3 months seems to indicate that this is the case, but they also reference aggressive and inflated pricing over the past year. Prices have grown so quickly… we saw that drop at the start of the pandemic and then up, and up, and up. Prices are coming down, but it looks like they are coming down from a place they should never have been. Buyers might be right to wait for prices to normalize, but they will very likely be paying higher interest rates. 

These charts highlight how inflated house prices have been in the past 2 years and the bottom chart really shows the frenzied activity in the market in 2021.

Essential Tutorial Videos

How to Help Divorcees

Emerson Munsayac How to Help Divorcees. He starts by giving an overview of what the session will be about: separation, lenders’ concerns, spousal buyout, fees, and payouts.

What You’ll Learn

  • Definition of what separation is and how each situation is different.
  • The concern of different lenders in regards to spousal, child support, and separation agreement.
  • The importance of asking relevant questions to avoid any mishaps. The overview of a spousal buyout, what it entails, and the conditions that lenders will look for when considering these clients were shared.
  • A case study that simplifies how different cases of spousal separations are and how to handle them.

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