2018 BROKER KIT WHAT S INSIDE? 1. NPX Sales Desk: Your Broker Support Hotline. 2. Key Highlights of the NPX Program. 3. Technical Specifications

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1 Get the Near Prime Xperience 2018 BROKER KIT WHAT S INSIDE? 1. NPX Sales Desk: Your Broker Support Hotline 2. Key Highlights of the NPX Program 3. Technical Specifications 4. Underwriting Tips 5. Real Estate Tips 6. Why Choose NPX? 7. Frequently Asked Questions 8. Your NPX Team NPX IS A PRODUCT OF MERIX FINANCIAL

2 GET THE NEAR PRIME XPERIENCE THE NPX SALES DESK Say hello to your dedicated support hotline for speedy responses on all things regarding NPX. Call or the NPX Sales Desk to: Find out if your deal can be an NPX deal Find out how to package your deal and submit it Have any questions you may have about NPX answered What we will need to know in order to help you: Is it a purchase or a refinance? What is the location and condition of the property? Is your client Salary or BFS? Find out the answers to any of your NPX questions. Fast. The NPX Sales Desk: npxsalesdesk@merixfinancial

3 2 Explore the Alternative At MERIX Financial, we know that different clients have different needs. That's why we are pleased to introduce NPX to offer a flexible approach to mortgages. NPX specializes in providing alternative Mortgage Solutions for the following market segments: Salaried clients, Business for Self Clients Non-Traditional Income Verification for Self Employed and Business Owners New Credit and Credit Damaged Mortgage Solutions for those who have not yet developed credit history For those who have past negative credit history that would prohibit them from receiving Traditional Prime Funding; Ability to pay out Bankruptcy, Consumer Proposals, CRA & Property Tax Arrears Beacon scores from 500. Lower beacon scores and zero beacon scores considered on a case-by-case basis. Investment Properties 5 Property Maximum (Owner Occupied + 4 Additional Properties), Single Unit (and Condo), Duplex, Triplex and Fourplex Properties *Rental Properties must be in an Urban area, minimum population 100,000+ Key Highlights of our Program: Loan Amounts up to $1M Loan Amounts over $1M to be considered on a case by case basis (Subject to LTV restrictions): Loan to Value of up to 80% in Population Centers of 100,000+ and 50km surrounding Loan to Value of up to 75% in Population Centers of 50,000+ and 25km surrounding Loan to Value of up to 70% for Rental Properties Loan to Value of up to 70% for Well & Septic Properties Flexible Payment Options Monthly, Semi-Monthly, Accelerated Bi-Weekly, Accelerated Weekly 30 Year Amortization Prepayment Privileges (Lump Sum up to 20% of the original principal amount & 20% increase in payment) Early Payout (Closed Term: greater of 3 months interest or Interest Rate Differential calculated at MERIX Posted rates) Fees On Purchases starting as low as $750 on 2 year terms On Refinances starting from 1% of the Mortgage Amount Documentation requirements Mortgage Application Credit Bureau (dated no greater than 30 days from date of submission) Appraisal (to be ordered directly off the NPX Approved Appraisers List)

4 3 Technical Specifications Loan Purpose Purchase and Refinance Property Type: Owner Occupied Rentals up to 70% LTV maximum Highly Marketable Programs: Business for Self New Credit Credit Challenges Business for Self Investment Properties Term: 1, 2 and 3 year(all fixed) Open Term Available upon Request Rate: Fixed Rate Hold 90 Days Loan Amount: Minimum $100,000 Maximum $1 million Down Payment: 10% minimum from own resources or can be gifted Maximum LTV: Amortization: Payment Options: Up to 80% of the property s appraised value or purchase price (whichever is less) including any applicable fees w Up to 30 years Monthly, semi-monthly, accelerated bi-weekly, accelerated weekly Prepayment Privilege: Lump sum up to 20% of the original principal amount 20% increase in payment w Early Payout: Closed Term: greater of 3 months interest of Interest Rate Differential (Based on MERIX Financial posted rates) Credit History: 500+ minimum beacon score Beacon <500 will be available on a case by case basis Bankruptcy must be discharged Consumer proposal must be paid in full (from proceeds acceptable) Income: BFS income accepted with documentation to support Documentation will be required to support existence of a business Documentation will be required for confirmation of employment as stated Contributory Income from residing immediate family allowed Other: Assumable transferable upon approval We reserve the right to choose our own solicitor Appraisals must be ordered through NPX approved appraiser list

5 4 Underwriting Tips When you submit an application, your underwriter will require answers to these questions: Is it a purchase or refinance? Where is the property located? What is the requested Loan-to-Value (LTV) and how was the property value estimated? What is the credit like? Derogatory credit or prior bankruptcy to be explained If it s a refinance, is the existing mortgage up to date? If it s a purchase, where is the down payment coming from? Is it from own resources or gifted? What is the source of income? Salaried or Business for Self (BFS)? If Business for Self (BFS), there are a few additional questions: What is the nature of the borrower s business? How long has the business been in existence? Is there an online presence? What is the declared income amount? Are business bank statements or other income documents available? Common Sense BFS Income Verification: Income can be verified in as little as 4 steps: 1) Proof of business ownership and existence via one of the following: - Articles of Inc. - Business License/Registration - Business Bank Account Reference Letter - Trade License - GST Registrations/Returns - Liability Insurance Certificate 2) Verification of cash flow and business continuance via most recent 3-6 months of business bank statements 3) Recent invoices or contracts substantiating business continuance and declared income 4) Fully completed income declaration letter * Further documentation may be requested

6 5 Real Estate Tips Marketability For NPX, condition and marketability of property are crucial. We re looking for property that is: Marketable Located in major urban areas (rural areas considered on a case by case basis) 100% complete In a desirable neighbourhood and good condition Has no major deferred maintenance or structural concerns Lending Area Guidelines Our lending area guidelines are as follows: Province: Ontario Major Urban areas up to 80% Loan to Value (LTV) MLS condo purchases considered up to 80% Loan to Value (LTV) Rentals up to 70% Loan to Value (LTV) Rural areas considered on a case by case basis up to 65% Loan to Value (LTV) Large loans up to $1 million

7 6 Why Choose NPX? Achieve Status Faster: Your NPX funded volume will count toward your MERIX and Lendwise Status Program. This means you now have 3 ways to fund more business through MERIX. Work with a Dedicated Team: The NPX team is comprised of experienced DBDs, underwriters, and credit administrators who look forward to growing your business. Access to Broker Portal Through Explore: Access your NPX deals anytime, anyplace with our innovative broker portal. Upload documents, communicate with your credit team, and track your deals with ease. Customized Service: We encourage phone conversations to discuss the many solutions available to you with NPX. Our team of experts will always go above and beyond to fund your deals. Find Great Programs and Competitive Rates & Fees: NPX provides you with a full suite of products and programs. We also have flexible rate and fee combinations to best suit you and your clients.

8 7 Frequently Asked Questions Q. How do I submit deals to NPX? A. You must be an approved originator to submit an NPX deal. In the D&H system, select NPX from the dropdown menu. Q. Where do I submit docs for my NPX deals? A. You can log into your MERIX explore Broker Portal account where you can upload up to 15 docs at a time. The system will support PDF, Excel, JPEG, and.txt file types. Q. How do I receive my commitment for an NPX deal? A. You will obtain your commitment through our on-line deal tracking explore Broker Portal. Commitments will not be available through the D&H system. Q. How do I order an appraisal for an NPX deal? A. Appraisals must be ordered directly from our approved appraiser list. Please click here to see the list. Q. Do you collect Property Taxes for NPX deals? A. Taxes will be collected and remitted to the municipality on behalf of the borrower(s). Q. If I have Status with MERIX Financial, are my appraisals covered for NPX deals? A. No. The cost of the appraisal on an NPX deal is the responsibility of the client. Q. Do NPX deals earn basispoints? A. No, but it does contribute to your Status Achievement level. Q. Do NPX deals impact my overall funding ratios with MERIX Financial? A. No. These deals will be excluded from your funding ratio calculations. Q. Will NPX deals help me advance my compensation tier levels under the Lendwise brand? A. No. However, NPX deals will be included towards overall volume commitments with MERIX Financial and help you reach Select, Premier, or Elite Status. Please click here for details on the MERIX Centre of Excellence Status program.

9 8 Your NPX Team If you have any questions, please contact your Director, Business Development/Personal Account Manager or your NPX Team in Ontario: Adele Iozzo Director, Business Development, NPX GTA East, Durham region, Northern Ontario, Ottawa ext Sarah Putnam Director, Business Development, NPX GTA West, Mississauga, Golden Horseshoe, Hamilton, Southwestern Ontario ext Lindsay Jurek Sr. Director of Sales, Alternative Lending (NPX) ext