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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.

Policy/Program Updates

Good morning all. Welcome to another month’s end. This is a busy one for November; thank you for your support; it’s greatly appreciated. 

Please send me a note if you still need to get your deal-funded email by 10 AM EST. Let’s not wait until the end of the day 😊

I had several email issues last week, and it’s back up and running correctly; please let me know if you are still waiting on something, just in case it got lost. 

We have some exciting changes listed below; please take a quick read of our update to our credit guidelines! You asked we listened!

Strive Aspire Program

Please see the snapshot below of our Rental and BFS/Extended Ratio product. 

Please see a snapshot below of our offerings

We can collect your fee on your behalf.

The minimum Amortization is 10 years with a Max of 40 years.

All docs to are dated within 90 days of commitment.

Rates are guaranteed for 60 days.

We can payout a private mortgage.

Just a reminder, we do not report on the bureau, and registration is under ComputerShare 😊

Currently, we have 3 and 5-year rates, plus a 2% lender fee. However, we can customize the rate with a higher cost, lower rate, etc. we are VERY flexible with this.

Aspire Rental Program

The program’s purpose is to focus on the DSCR and the property, offering a low-doc solution compared to traditional B lenders.

We will allow Hold Co’s, Student rentals, Short term rentals ( Airbnb style) and single-family dwellings 1 to 4 units ( condos are included in this)

Interest-only options are available, min beacon score of 700 

Please note a min of 6 months PITCH is required ( equity in a current home is acceptable)

BFS/ Deals needing extended ratios 

This program aims to focus on self-employed clients who require non-traditional qualifications through debt servicing and credit guidelines. In addition, this program can be used for clients that have traditional income, however, need extended ratios to service their debts.

Our max ltv is 65% in Urban Markets, with 60% for the rest of Canada.

Min Beacon score for all applicants is 660; however, for a self-declared client, we would need 700.

BFS Income Qualifying based on:

6-12 months of bank statements, less monthly fixed expenses 

or 

Profit/loss statement showing net income prepared by a third-party accountant 

or 

Self-declared letter using gross business revenue and expected expenses / net income.

Submission Requirements 

Select Strive Aspire/Strive Alt

Appraisal with market rents (for our rental product). Aspire Approved Appraisal list is attached.

You may also order appraisals directly through Value Connect, Nationwide Appraisal Services (NAS) or Solidifi).

Click on the links below for the Aspire Rental and Appraiser List documents:

Aspire Rental documents:

Appraiser List documents:

Canada’s Foreign Buyer Ban in Effect January 1, 2023

The Prohibition on the Purchase of Residential Property by Non-Canadians Act will be effective beginning January 1, 2023, prohibiting non-Canadians from purchasing residential property in Canada for two years. This was the government’s response to curbing high house prices witnessed in the Canadian real estate market.

Some exemptions are made to:

  • Temporary residents within Immigration and Refugee Protection Act.-
  • International students on the path to permanent residency.
  • Individuals with work permits residing in Canada.
  • Individuals who are fleeing global crises.
  • A non-Canadian who purchases residential property in Canada with their Canadian spouse or common-law partner.
  • A non-Canadian who becomes liable or assumes liability under an agreement of purchase and sale of residential property before the day on which this Act comes into force, January 1, 2023.

Ginkgo’s Solution: Our Non-Resident Program.

Ginkgo has a product for Non-Residents, which encompasses foreign buyers and non-residents! Take advantage of this for your client’s deal before year-end.
Features of Non-Resident Program:

  • Up to 70% LTV
  • Fully Open Term providing flexibility and no penalty to pay off a mortgage
  • Interest-only payments.

Community Trust

Community Trust is implementing a major policy change on Dec 5th. Some familiar products are being phased out.

Our High Equity Program will no longer be in effect:

58/60 GDS/TDS

Owner-occupied only

65% LTV

600+ FICO

No recent derogs

Area restrictions apply

85% offset on subject rentals will also be changing. 

Get your extended ratios and subject rental deals in while you can!

RMG

Please see the attached rates for RMG’s Safeguard Second Mortgage, 5-year fixed is 5.64% and ARM P-0.40%. That’s right, a second mortgage at 5.64% or P-0.40%! Paying 110 bps + 15 bps Incentive.

Let’s take a look at how this can benefit your existing RMG clients with lower interest rate first mortgages.
Use this as a reason to reach out to your existing RMG clients. Ask me for a pre-written template to help you market RMG’s Safeguard Second Mortgage product, a great way to touch base with your clients for a mortgage check up!

EG. The client has an existing mortgage of $440,000, 25-year am 2.45% fixed, paying $1,960/m and monthly debt payments of $765.
They want to borrow an additional $100,000.

A typical refinance to $540,000, 25 year am at current rates would make their new payment $3,309/m or at a 30 year am a new payment of $3,058/m
They may also incur a penalty to break their mortgage.

With RMG’s Safeguard Mortgage you can offer your clients a second of $100,000, 25 year am, 5.64% fixed, with a payment of only $619/m
Keeping their existing 2.45% first, with the payment of $1,960/m, their new payments would total $2,579/m, a savings to your client of $730/m versus a total refinance (legal fees apply, no penalty for breaking their first mortgage).

And remember, you’re only using the stress test on the new funds when qualifying, the first mortgage is based on actual payment!

  • Min. Beacon 650 for each applicant
  • Min. loan amount $10,000
  • Combined loan amount:
    • Min. $50,000
    • Max. loan amount $2,000,000 (based on lending area)

Customer Service: MortgageSupport@RMGmortgages.ca or call1.866.809.5800.

See the links below:

RMG Safeguard Mortgage

RMG Rate Buy Down Tool

RMG Pilot Promotion

Promos

New Haven

Essential Tutorial Videos

How to Run Deals in other Provinces: Emerson Munsayac

In this Deals & Underwriting session, our VP of Service and Operations, Emerson Munsayac discusses how to run deals in other provinces.

What You’ll Learn

  • What is required from us to do national deals.
  • The Prime, Alternative and Private lenders that can be used in other provinces.
  • The submission process that we must follow and lastly, the provinces that we can currently do business in, as well as the provinces that will be available for us to do business in soon.

Variable vs Adjustable Rate Mortgages

In this Deals and Underwriting training session, our mortgage agent Peter Ricketts Variable vs Adjustable Rate Mortgages and how clients are impacted by these mortgages.

What You’ll Learn

  • What an ARM (Adjustable Rate Mortgages) is, and what are its benefits.
  • The flexibility to convert an adjustable rate mortgage into a fixed rate mortgage to lock in the interest rate etc.
  • What is a Variable Rate Mortgage, and how one’s monthly payment remains fixed at a specific amount and payments will remain the same regardless.

Deals & Underwriting: Debt Consolidation- Fall Market

In this Deals and Underwriting training session, our VP of Service and Operations, Emerson Munsayac, takes us through Debt Consolidation in this Fall Market.

What You’ll Learn

  • The current market is different from what we have experienced in the past so accessing clients’ needs and wants and finding the right solution for them is essential.
  • Emerson explains the purpose of debt consolidation and how important it is to look at your client’s situation and figure out the best solutions to serve clients
  • Lender guidelines for refinances which include the overall loan amount, LTV and appraisal values etc, were also discussed.

Porting and Blending Mortgages when buying with Marlon Yee

In this Deals and Underwriting training session, our Pineapple Counsellor Marlon Yee shares information on porting and blending mortgages when purchasing.

What You’ll Learn

  • What is a port, and different porting options which include: straight port, blended port and blend and extend.
  • Why is this relevant in today’s market was also discussed along with the importance of managing clients’ expectations.

Ratios: How They Are Impacted with Jamie Sylvester

In this Deals and Underwriting session, our Pineapple Counsellor Jamie Sylvester discusses Ratios and how they are affected.

What You’ll Learn

  • The importance of a mortgage application and what is meant by subject property, down payment, mortgage information and mortgage request details.
  • What is meant by GDS (Gross Debt Services) and TDS (Total Debt Services) and what affects the calculation.
  • Providing clients with the correct information is essential. Jamie also shared details on a live application from DOS to reiterate all that was discussed.

What Clients to Target in the 2022 Fall Market

In this Deals and Underwriting session, our VP of Service and Operations Emerson Munsayac discusses ”What clients to target in the 2022 Fall Market”

What You’ll Learn

  • The 2022 Spring Lending market and the challenges regarding purchases and refinances.
  • What is happening in today’s lending market, regarding qualifying percentage rates, and average selling price makes it easier to manage clients’ expectations accordingly.
  • Spring vs fall scenario and the changes that are happening with refinancing and purchasing deals were compared.

Insured, Insurable, Uninsurable Explained with Peter Ricketts

In this Deals and Underwriting session, our Pineapple counsellor Peter Ricketts discusses Insured, Insurable, and Uninsurable products in today’s Market.

What You’ll Learn

  • The purpose of an Insured mortgage.
  • Who pays for the insurance is one very common question that is usually asked by clients and it is very important for agents to share this information with clients.
  • Peter explains the Max LTV, lender guidelines, downpayment, qualifying rate, etc of each classification.

Non-B20 Compliant Scenario

In this Deal and Underwriting session, Emerson Munsayac discusses Non-B20 compliant scenarios. He shares what Non-B20 Guidelines are when they started and updates that have been made since 2018.

What You’ll Learn

  • What Non-B20 Guidelines are when they started and what updates have been made since 2018.
  • What a stress test is, how it regulates the industry and how easily accessible it is through the Pineapple rate sheet.
  • A scenario that gives an idea of how the numbers work and how to get the right product sheet for different guidelines.

New to Canada Case Study with Don Chen

Pineapple Counsellor Don Chen, shares information and the importance of New to Canada clients.

What You’ll Learn

  • Who are new to Canada clients and the importance of these clients establishing a credit bureau history.
  • Requirements that are crucial for new to Canada clients who are looking to qualify for a mortgage.

Figuring Out Penalties

Emerson takes us through figuring out penalties.

What You’ll Learn

  • The difference between 3 months’ interest and the Interest Rate Differential (IRD).
  • Walks us through a real-life case study and shares how to calculate these payments.

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

Figuring Out Penalties

Emerson takes us through figuring out penalties.

What You’ll Learn

  • The difference between 3 months’ interest and the Interest Rate Differential (IRD).
  • Walks us through a real-life case study and shares how to calculate these payments.

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