It’s been around since 1970, primarily as an alternative and commercial lender. But now, effective Wednesday morning, Equitable Bank becomes Canada’s newest prime mortgage lender.
Equitable is rolling out a slate of mortgage products, both high-ratio and conventional, under the brand name “EQB Evolution Suite.”
The bank’s new offerings include:
Remember the “good old days” when self-employed borrowers could readily obtain stated income mortgages to 80% loan-to-value? It could take years before those days return to the prime mortgage market, if ever.
But a few lenders still offer out-of-the-box solutions for business-for-self (BFS) clients, and B2B Bank is one of them. A few weeks ago it launched its “BFS Expanded” product, a unique mortgage for those who’ve been self-employed for at least two years, with bank statements to support their income.
Investors Group’s 1.99% variable-rate special is already making life harder for competitors. Clients are contacting their bankers and brokers and asking, “Is this mortgage right for me?” and “Can you match this rate?”
Mortgage advisers are actively, and in many cases rightfully, selling against this mortgage. The fine print speaks for itself, albeit it’s still a spectacular deal.
We asked ourselves (and answered ourselves) the following questions.
Nine out of ten Canadians would rather own than rent, according to a new Genworth Canada study.¹ But the down payment often stands in their way.
A recent Vancity poll found that 60% of first-time buyers in B.C., for example, find down payment requirements to be a barrier to home ownership.
Nationally, 53% of homebuyers are worried they might miss their dream home because they’re short on the down payment.
Xceed Mortgage has been reinventing itself ever since the financial crisis, when liquidity dried up and killed its bread-and-butter business: uninsured non-prime mortgages.
Since then, Xceed has offered mostly plain-Jane insured mortgages…until now. The company has launched a new X-Series mortgage. It’s an uninsured product that competes with the likes of Home Trust, Equitable Bank and Optimum Mortgage.
The launch reflects both Xceed’s end goal (to be more than a run-of-the-mill insured lender) and the capabilities of its new owner, MCAN.
Home Trust has taken bundle mortgages to the next level.
Bundle mortgages consist of an uninsured first mortgage to 80% loan-to-value (LTV) plus a second mortgage for additional funds. Since the financial crisis, they haven't generally exceeded 85% LTV total. Home Trust now offers one at 90%.
Financing a rental property has become tougher and tougher in recent years. So any time a new rental lender comes along it’s a positive for investors.
The latest option comes from Street Capital, one of Canada’s largest non-bank lenders. Its new “Small Rental Program” launched today.
The best part: It comes with no rate surcharges and no insurance premiums up to 75% loan-to-value (unlike many other rental lenders).
Unlike the banks, Meridian Credit Union doesn’t worry about calls from the Department of Finance urging it to price 5-year mortgages above 3.00%. It’s a good thing it doesn’t because the company, Ontario’s largest credit union, has rolled out a new 2.99% five-year fixed mortgage.
On an advertised basis, it’s the lowest 5-year fixed rate of any lender in the country, according to CMT’s sister site RateSpy.com. The mortgage comes with a 45-day rate hold and all the bells and whistles, including a 20% annual prepayment privilege, portability (within the province), bridge financing, optional skip-a-payment, etc.
“We wanted to get out there early (in advance of the spring market),” said Bill Whyte, Chief Member Services Officer at Meridian.
Here’s a quick look at lenders who launched (or re-launched) mortgage products in the past few weeks.
With stricter mortgage guidelines suppressing volumes and competition squeezing margins, mortgage brokers are increasingly on the lookout for new business generators.
TMG The Mortgage Group equips its brokers with one such initiative. It’s called the “Mortgage Perks Plus program” and it launched October 21.