ATB Broker Services Changes to New Home Construction Mortgages

Dear Valued Partners,

We would like to take this opportunity to provide you with an important update on our Construction Draw Product. Beginning November 1, 2023, our draw product will be available as a 5-year variable rate closed mortgage product only.  Fixed-term products will no longer be an available option for new progress draw builds.  Please note this change in ATB policy is organization-wide.  Our closed variable rate product does have a 12-month extended hold option for new builds that can be utilized.  Clients also have the option of converting the VRM to a fixed-term product equal to or greater than the remaining term once the final advance has been funded.

What's Changing?

• Draw mortgages will be available in a 5 yr closed, variable rate product only
• All progress draw mortgage applications must use the 9-12 month extended rate hold (see rate bulletin)

When is this happening?

• This will be effective November 1st, 2023

Will this impact any live deals?

• Any live deals will be honoured and will not be affected by this policy change
• This will impact any deals submitted after October 31, 2023
• Any deals that are not live before November 1, 2023, will be subject to the 5-year variable rate closed product
• Pre-approvals and Rate Holds will be required to be updated to our new policy.  We will not honour the previous quoted rate

5-Year Closed Variable Draw Mortgage Features

• This product Is available for owner-occupied and revenue properties
• Features a floating interest rate
• All features and options of a fixed-rate closed mortgage apply, except as specified.
• The term will commence after the final draw
• The 5-year Variable closed product is fully convertible without penalty into a fixed closed mortgage product, new term must meet or exceed the length of the remaining term
• 20/20 prepayment options
• The construction period is 18 months from Interest Effective Date.

Does this impact completion mortgages?

• No, completion mortgages will remain with the same options for both fixed and variable rates