Canada Product Guide. With our Accelerator Program of insured A products we now have bank rate options for your A clients with clean credit.

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1 Canada Product Guide With our Accelerator Program of insured A products we now have bank rate options for your A clients with clean credit. Our dedicated underwriters have the experience to find the solution to even your most complex deals. Every deal is reviewed as a unique story, and we ll work from every angle to make it fit. Your one-stop mortgage lender This material is intended for broker use only, and is not meant for consumer distribution. Registered trademark of Home Trust Company Updated: December 5, 2012

2 Purchase Accelerator Purchases up to 95% LTV 90.01% - 95% LTV 85.01% - 90% LTV 80.01% - 85% LTV Ratios Premium 680+ Beacon; GDS 39% & TDS 44% Below 680 Beacon; GDS 35% & TDS 42% 2.75% 2.00% 1.75% Top up 4.25% Top up 4.25% Top up 3.50% 2

3 Purchase Accelerator Guidelines Applicable Insurer Programs: CMHC: Second Homes, Newcomers to Canada, Non-Permanent Residents (As per CMHC Guidelines) Genworth Property: Owner Occupied Single Family Dwelling up to 4 units (3-4 units with max 90% LTV), Townhouse, Condo, Second Homes Income Confirmation: Salaried - pay stub and job letter; BFS - 2 years NOA Down Payment: From own funds, gifted or borrowed (650+ Beacon required if borrowed) New Immigrants: Minimum 1 year in Canada in permanent residence status. Alternative sources of credit: utilities, cable, insurance premiums, child care expenses, bank records (See CMHC Guidelines) Minimum Loan: $50,000 Maximum Loan: $750,000 Amortization: Up to 25 years Terms: 1, 2, 3, 4 and 5 years; open on 3 months interest or IRD whichever is greater; 20/20 prepayment privilege is available throughout the year Variable Rate Program: See page 10 for policies and guidelines Lending Areas: Home Trust Lending Area Guidelines apply Appraisal: No appraisal unless required by insurer 3

4 Refinance Accelerator Refinances up to 80% LTV 80% LTV Ratio 680+ Beacon; GDS 39% & TDS 44% Below 680 Beacon; GDS 35% & TDS 42% Max ETO* $200,000 Premium up to 1.75% Top up 3.50% * Equity Take Out 4

5 Refinance Accelerator Guidelines Applicable Insurer Programs: CMHC: Refinance Genworth Property: Owner Occupied Single Family Dwelling up to 4 units, Townhouse, Condo, Second Homes Income Confirmation: Salaried - pay stub and job letter; BFS - 2 years NOA Minimum Loan: $50,000 Maximum Loan: $750,000 Amortization: Up to 25 years Terms: 1, 2, 3, 4 and 5 years; open on 3 months interest or IRD whichever is greater; 20/20 prepayment privilege is available throughout the year Variable Rate Program: See page 10 for policies and guidelines Switch-Transfer Program: Home Trust will pay for the First Canadian Title legal fee and the discharge fee up to $250. Lending Areas: Home Trust Lending Area Guidelines apply Appraisal: No appraisal unless required by insurer 5

6 Rental Accelerator * Purchases & Refinances up to 80% LTV 80% LTV Purchases and Refinances (650 Beacon) 680+ Beacon; GDS 39% & TDS 44% Ratio Below 680 Beacon; GDS 35% & TDS 42% Premium 2.50% *Client is responsible for CMHC Premiums 6

7 Rental Accelerator Guidelines Applicable Insurer Programs: CMHC: 1-4 Unit Rental Properties Genworth: Investment Property Program Property: Non-Owner Occupied, Single Family Dwelling up to 4 units (3-4 units with max 80% LTV), Townhouse, Condo Income Confirmation: Salaried - pay stub and job letter; BFS - 2 years NOA T1 Generals Down Payment: From own sources Minimum Loan: $50,000 Maximum Loan: $750,000 Amortization: Up to 25 years Terms: 1, 2, 3, 4 and 5 years; open on 3 months interest or IRD whichever is greater; 20/20 prepayment privilege is available throughout the year Variable Rate Program: See Page 10 for policies and guidelines Lending Areas: Home Trust Lending Area Guidelines apply Appraisal: No appraisal unless required by insurer Insurance Premiums: Customer is responsible for insurance premiums regardless of Loan to Value 7

8 Low Doc Accelerator Purchases up to 90% LTV and Refinances up to 80% LTV Up to 90% LTV Up to 80% LTV Purchases Refinances Beacon 620+ Ratio 680+ Beacon; GDS 39% & TDS 44% Below 680 Beacon; GDS 35% & TDS 42% Premium Up to 4.75% Up to 1.64% Top up 7.00% Top up 3.85% No mortgage delinquency in the last 5 years. No delinquency in the last 12 months. No income or tax arrears. 8

9 Low Doc Accelerator Guidelines Applicable Insurer Programs: CMHC: Self Employed Simplified (CMHC cannot exceed 3 years in business) Genworth Property: Owner Occupied up to 2 units, Single Family Dwelling, Townhouse, Condo Income Confirmation: Clients must confirm no tax arrears via Home Trust Stated Income Declaration letter and current NOA s. Must provide business or GST license or articles of incorporation. Down Payment: From own sources Minimum Loan: $50,000 Maximum Loan: $750,000 Amortization: Up to 25 years Terms: 1, 2, 3, 4 and 5 years; open on 3 months interest or IRD whichever is greater; 20/20 prepayment privilege is available throughout the year Variable Rate Program: See Page 10 for policies and guidelines Lending Areas: Home Trust Lending Area Guidelines apply Appraisals: No appraisal unless required by insurer Condo: Maximum 85% LTV on all Low Doc Purchase deals. Maximum 80% LTV on all Low Doc Refinances. Insurance Premiums: Customer is responsible for insurance premiums regardless of Loan to Value 9

10 Variable Rate Accelerator Purchases up to 95% & Refinances up to 80% LTV Term Purchases Refinances 3 and 5 year Up to 95% Up to 80% 1 Applicable Insurer Programs: CMHC: Newcomers to Canada, Non-Permanent Residents, Refinance, Second Homes 2, Rentals 2,Genworth Term: 5 year; closed first three years. After the 3rd year anniversary it is open on 3 months interest. Convertible Option: Convertible at any time to a 3 or 5 year best Accelerator rate. New term is determined by the elapsed time on the existing term. Rate: Prime is set at Royal Bank Prime Rate; interest rate adjusted on the 1 st of each month. Qualification: Based on the Chartered Bank conventional mortgage 5 year rate that is the most recent interest rate published by the Bank of Canada in the series V121764: Payment Frequency Options: Fixed monthly or bi-monthly payments, on the 1 st and 15 th of the month. Prepayment Privilege: 20/20 prepayment privilege is available throughout the year. Minimum Loan: $50,000 Maximum Loan: $750,000 Property Taxes: All mortgage payments will include property taxes to be collected and paid by Home Trust. No tax hold back. Amortization: Up to 25 years 1 80% refinances are for standard deals with beacon scores of 650 or higher. 2 Add 0.25% to the rate for Rental and Second Home Programs and Low Doc Accelerator. 10

11 Accelerator Program Details Lending Areas: All major urban centres in Ontario, Manitoba, British Columbia, Quebec, Alberta, Nova Scotia, New Brunswick, Newfoundland and Prince Edward Island. Property Types: Up to 4 units (see insurer s guidelines), Single Family Dwelling, Townhouse, Condos, Second Homes Insurance Programs: CMHC: Newcomers to Canada, Non-Permanent Residents (as per CMHC s guidelines), Refinance, Self Employed Simplified Genworth Payment Frequency Options: Monthly, bi-weekly or bi-monthly; options may vary by product Loan To Value: Up to 95% LTV on purchase and up to 80% LTV on refinance. All 95% LTV purchases will require a Home Trust site inspection.gifted funds not permitted for 95% LTV. Service Commitment: Same day, max 24 hour turnaround Rate Buy Down: The rate can be bought down by either 5 or 10 bps offset by a lower finder s fee: Term Rate Reduction Finder s Fee Reduction 1 and 2 year 3 and 4 year 5 year 5 bps 5 bps 10 bps 10 bps 5 bps 15 bps 10 bps 30 bps 5 bps 25 bps 10 bps 50 bps Portable Mortgage: All mortgages are portable subject to a $500 fee. Rate Guarantee: 120 days on purchases and refinances Rate Drops: One time rate drop, seven days prior to closing upon broker request No Appraisal: Appraisals are only required for private sales, or if requested by the insurer. Open on 3 months or IRD: Accelerator mortgages are open on 3 months interest or IRD, whichever is greater (Variable Rate Product excluded) Prepayment Privilege: 20/20 is available throughout the year. Low Beacon Exception: Any deals below 620 beacon are subject to an additional premium Property Taxes: All mortgage payments will include property taxes to be collected and paid by Home Trust. No tax hold back. All rates subject to change. Approvals subject to Home Trust policies and guidelines. 11

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