MORTGAGE LENDING GUIDELINES 2013

Transcription

1 200, TH Avenue NE, Calgary, AB T2E 1L6 Phone : Fax: MORTGAGE LENDING GUIDELINES 2013 Mortgage Investment Corporations Lending Guidelines Page 0 of 13

2 CMS Real Estate Ltd. is the exclusive broker for DMD, DMD ll, DMD lll, DMD lv, DMD V, Crossroads-DMD, Sun Country Mortgage Investments Corporations LOAN SIZE $10, Minimum - $500, Maximum Loan Amount considered on a case by case basis. (Funding could be from more than One MIC, if Larger than $50,000.00) LOAN TO VALUE RATIO Up to 85% No Insurance Required TYPES OF LOANS 1 st Mortgages 2 nd Mortgages 3 rd Mortgages Bridge Financing Construction Financing Guaranteed Sales on Trade Ins Foreclosure redemptions TYPES OF PROPERTY AS SECURITY Single Family Residential Duplexes Town Houses Multifamily Revenue Properties [on individual case basis] Commercial / Industrial [on individual case basis] Primary lending areas Calgary, Edmonton, Red Deer, Lethbridge, Canmore/Banff, Winnipeg, Brandon, based properties, see attached Lending Area guidelines Small urban areas on individual case basis NO APARTMENT CONDOS/NO MOBILE HOMES/NO ACREAGES Mortgage Investment Corporations Lending Guidelines Page 1 of 13

3 ~ 2 ~ LOAN TERMS Interest Rate or Yield = 16.5% compounded monthly [may be obtained through rate or rate + fees to Lender] Term - 1 Year Amortization up to 30 years or interest only Second Mortgage-Lenders Fee: 2% of gross loan amount if interest rate is 16.5% [may be negotiated if borrower prefers lower interest rate with higher fees to lender] Third Mortgage-Lenders Fee: 3% of gross loan amount if interest rate is 17.5% [may be negotiated if borrower prefers lower interest rate with higher fees to lender] No Payout Penalty: Can be prepaid at any time without penalty or bonus. Payment Options: Automatic Debit / Post-dated Cheques: Monthly, Biweekly, Weekly LEGAL AND BROKERAGE FEES Borrower pays all Legal and Brokerage Fees [may be deducted from advance] Borrower pays all Appraisal Fees Lender to specify appraiser to be used [No Exceptions] LOAN PURPOSES Purchase Real Estate or Assets Business Start Ups Debt Consolidation Divorce Settlements Bankruptcy Settlements Refinance / Equity Take Outs CREDIT CRITERIA VERIFICATION OF INCOME Last Years Tax Returns or Assessment Notices Letters of Employment on Employers letterhead Bank Statements Financial Statements Copy of pay records Self Declared Letter on stated income declaration form provided by CMS supported by 12 months bank statements. If Not Verifiable: Considered on an individual case basis BUSINESS FOR SELF Complete business information form (provided by CMS) 6 12 months of bank statements verifying self declared income and Self Declared Letter on stated income declaration form (provided by CMS) NOA s (if available) Financial statements (if available) Copy of business license 3 ~ Mortgage Investment Corporations Lending Guidelines Page 2 of 13

4 DEBT SERVICE RATIO S TDS (total debt 52% maximum CREDIT HISTORY Will consider distressed credit if a good verifiable explanation is available Bankruptcy: a) Will consider discharged bankrupts regardless of date of discharge, whether credit is re-established or not. b) Will consider financing borrower in bankruptcy with consent from trustee. Collection or Judgment: Will consider if good and verifiable explanation is available. Foreclosures: Will refinance foreclosures if reason for foreclosure is verifiable and cause of foreclosure has been corrected. INSURANCE Credit, Life and Disability Insurance available at request of Borrower INSPECTION AND CONDITION REPORT If required, a representative of CMS Real Estate Ltd. will do a walk-through of property and review of neighborhood. If deemed necessary, a professional inspection of the property will be carried out by an acceptable home inspection service. All cost to be responsibility of Borrower. COMMITMENT PERIOD & APPLICATION PROCESSING INFORMATION Typically one to two days turnaround time There will be charge of $ on each redo on a file You will be notified when file has been sent to lawyers with instructions The lawyer will contact client to schedule appointment for signing or forward documents to borrowers lawyer BROKERAGES FEES CMS Real Estate Ltd. is the exclusive broker for DMD, DMD ll, DMD lll, DMD lv, DMD V Crossroads-DMD & Sun Country Mortgage Investment Corporations. All applications must be submitted through CMS Real Estate Ltd. and a fee or fee split arrangement must be agreed upon by originating Broker and CMS Real Estate Ltd. CMS Real Estate typical fee is 3.50% of loan amount. ~ 4 ~ Mortgage Investment Corporations Lending Guidelines Page 3 of 13

5 CMS APPROVED APPRAISERS PHONE FAX CALGARY Atkinson & Associates (Richard Moore) Macdonald Copeland Residential Valuation Services(Don Letterio) Price Aspinall Linnell Taylor EDMONTON Knight & Company Jackson Real Estate Appraisals Ltd Hagan Appraisers Bourgeois & Company RED DEER Howard & Company Inc Soderquest Appraisals LETHBRIDGE Reliance Appraisal CANMORE/BANFF Gateway Appraisals (Bill Taylor) WINNIPEG Rixon Appraisals BRANDON Roland Weir Appraisal Associates Absolute Appraisal Co Mortgage Investment Corporations Lending Guidelines Page 4 of 13

6 Lending Area s and Loan to Value Place: LTV: Place: LTV: Edmonton 85% Red Deer 85% St. Albert 85% Sylvan Lake 85% Sherwood Park 85% Lacombe 85% Leduc 85% Calgary 85% Spruce Grove 85% Airdrie 85% Stony Plain 85% Okotoks 85% Beaumont 85% Cochrane 85% Ft. Sask. 85% Chestermere 85% Banff 85% High River 85% Canmore 85% Strathmore 85% BRANDON 85% Lethbridge 85% Winnipeg 85% Coaldale 85% Mortgage Investment Corporations Lending Guidelines Page 5 of 13

7 MORTGAGE AGENT CHECK LIST (to be sent along with mortgage application) For CMS Real Estate s Mortgage Division to assist and accelerate an approval for you and your applicant s submission to borrow funds please provide the following documents and information upon submission of your application. Documents and Information required when submitting new Applications. Please check the box of what information has been submitted with the application. If your mortgage application does not include the following information please provide in the space provided below. Mortgage application form Credit Reports Applicant 1 Applicant 4 Applicant 2 Applicant 5 Applicant 3 Applicant 6 Title or legal description of property being mortgaged (NO MOBILES/ACREAGES) Property 1 Lot/Unit: Block: Plan: Property 2 Lot/Unit: Block: Plan: First Mortgage Information Required 1 st Mortgage Holder 1 st Mortgage Balance 1 st Mortgage Payment 1 st Mortgage Maturity date Second Mortgage Information Required (if applicable) 2 nd Mortgage Holder 2 nd Mortgage Balance 2 nd Mortgage Payment 2 nd Mortgage Maturity date Mortgage Summary Brief description of circumstances surrounding transaction Requested amount of Funds Use of Funds Amount of your broker fees Mortgage Investment Corporations Lending Guidelines Page 6 of 13

8 If Debt consolidation list what debts and amount to be paid Annual property taxes of property being mortgaged Income and Source of Income Applicant 1 Applicant 2 Applicant 3 Applicant 4 Business for Self Information Business Name: Business Address: Type of Business: Limited Company Partnership Sole Proprietorship Date of Incorporation: Number of years in business: Nature of Business: Offer to Purchase (if applicable) Condominium Fees (if applicable) Condominium Documents (if applicable) By-laws Latest financial statement Current year s budget Minutes from last annual general meeting and subsequent meeting Reserve fund study Estoppels certificate (CMS will instruct lawyer to obtain) Appraisal by approved appraiser (see attached list of approved appraisers Mortgage Investment Corporations Lending Guidelines Page 7 of 13

9 Pre Funding Check List Prior to any offer to fund being instructed and sent to our lawyer for processing the following documents must be received and approved by CMS Real Estate Mortgage underwriter. Brokerage and application fee agreement signed by client Signed and accepted offer to fund Mortgage disclosure agreement signed by client Mortgage disclosure agreement signed by referring broker and client Brokerage commission agreement signed by referring broker Approved appraisal (see Mortgage Lending Guidelines for approved appraisers) Offer to purchase if applicable Condominium Documents (if applicable) By-laws Latest financial statement Current year s budget Minutes from last annual general meeting and subsequent meeting Reserve fund study Estoppels certificate (CMS will instruct lawyer to obtain) Income Verification (any of the following) Last year s Tax Returns or Assessment Notices Letters of Employment on Employers letterhead Bank Statements Financial Statements Copy of pay records Self Declared Letter on stated income declaration form provided by CMS (Supported by 12 months bank statements) If Not Verifiable: Considered on an individual case basis Mortgage Investment Corporations Lending Guidelines Page 8 of 13

10 Business for Self 200, TH Avenue NE, Calgary, AB T2E 1L6 Phone : Fax: Complete business information form (provided by CMS) 6 12 months of bank statements verifying self declared income and Self Declared Letter on stated income declaration form (provided by CMS) NOA s (if available) Financial Statements (if available) Copy of business license Bankrupt Applicant Trustee approval letter Lawyer applicant will be using Firm name Lawyer name Address Phone Fax Other documents required Mortgage Investment Corporations Lending Guidelines Page 9 of 13

11 STATED INCOME DECLARATION I acknowledge that has relied upon the information contained in the Credit Application, including the following information provided by me, in assessing whether to approve my Credit Application. I certify the following to:. That my total gross annual earnings/income** is $, and that I do not currently have any outstanding personal income taxes owing/payable to the Canada Revenue Agency. That I expect such gross annual earnings/income will continue to be at least the amount indicated indefinitely and I do not foresee any decline in such gross annual earnings/income; That the information provided here and within the Credit Application is a true and correct representation of my financial situation; and That I can afford to make all loan payments and perform all my obligations under any loan or mortgage agreement with without any undue financial hardship. Date Address Borrower s signature Borrower s signature Witness signature **Earnings/Income is defined as the amount of money or its equivalent received from legal sources during a period of time (e.g. annually) in exchange for labor or services, and may also include profits realized from the sale of goods or property or from financial investments. Gross earnings/income refers to your income before taxes have been deducted. Mortgage Investment Corporations Lending Guidelines Page 10 of 13

12 BUSINESS FOR SELF INFORMATION Business Name: Business Address: Type of Business: Limited Company Partnership Sole Proprietorship Date of Incorporation: Number of years in business: Nature of Business: Date Borrower s signature Borrower s signature Witness signature ** Earnings/Income is defined as the amount of money or its equivalent received from legal sources during a period of time (e.g. annually) in exchange for labor or services, and may also include profits realized from the sale of goods or property or from financial investments. Gross earnings/income refers to your income before taxes have been deducted. Mortgage Investment Corporations Lending Guidelines Page 11 of 13

13 RENTAL PROPERTY INCOME CALCULATION (For Single Unit Properties) Rental Income Operating Expenses Less: Vacancy and Credit 5% (Percentage of Rental Income) Less: Property Taxes (Annual) Less: Insurance (Annual) Less: Repairs and 10% (Percentage of Rental Income) Total Operating Expenses Net Income Less: Annual Debt Service Cash Flow/Income before Taxes Mortgage Investment Corporations Lending Guidelines Page 12 of 13