Last Updated: January 1, 2020

For clients with credit scores over 600 that meet all lender parameters for Income, GDS/TDS ratios, Credit & Property location – The Prime(A) lender pays a fee when the credit score is over 600 and the client does not have to pay a fee as long as the quality of the house, the strength of the income and all the other factors meet the guidelines of prime lenders.  In the event the client does not meet prime lender guidelines due to a GDS/TDS ratio that is higher than allowed, income that is not-verifiable or insufficient, equity take-out(increase of mortgage) amount requested that exceeds the $200,000 maximum allowed by insurers in a refinance or location that is not desirable to the lender due to the low total population within 50 kilometers, the guidelines of applicants with non-prime credit profiles that follow come to effect.  Any of the preceding very important factors can disqualify an application with a prime lender.  In this case, the guidelines for clients with weaker credit or a non-prime credit profile or a beacon score under 600 apply.  If an applicant meets all of the Lending Parameters except for one such as Debt Ratios or Credit and we need to use an Equity Program via an A Lender the Guidelines that follow for Alternative Mortgages apply.  Please note that an 1% Consulting Fee applies for Loans arranged via a Credit Union or a Bank that focuses on A Lending and does not pay a Referral Fee to Mortgage Brokers.  The client will be aware from the beginning of this unique situation and an Agency Agreement will be signed.

 

Residential Mortgages – For clients with weak credit or a non-prime credit profile or a beacon score under 600 or for those that use a Pure Equity Program of a Prime Lender Alternative Mortgage Guidelines Apply B Lenders pay a referral fee from the Application Fee they normally charge while Private Lenders do not pay a referral fee in 99% of all cases.  In such a case, for B Lenders the standard fee is $3,750 for residential loans up to $265,000 and 1.40% of the loan amount for residential loans from $265,000-$1,000,000.  For B Lender Loans over $1,000,000 the standard Mortgage Broker fee is 1.25%.  For Private Lenders the standard fee is $3,750 for residential loans up to $215,000 and 1.75% of the loan amount for residential loans from 215,000-$1,000,000.  For Private Lender Loans over $1,000,000 the standard Mortgage Broker fee is 1.25%. Applications that involve foreclosure have a standard fee of 2% of the loan amount with a standard fee of $4,000 for amounts under $200,000.

 

Commercial Mortgages– Commercial Lenders do not pay a fee.  In such a case, for A & B Commercial Lenders the standard fee is $3,750 for Commercial loans up to $250,000 and 1.75% of the loan amount for Commercial loans from $250,000-$1,000,000.  For A & B Lender Loans over $1,000,000 the standard Mortgage Broker fee is 1.25%.  For Private Commercial Lenders the standard fee is $3,750 for loans up to $215,000 and 1.75% of the loan amount for loans from 215,000-$1,000,000.  For Private Lender Loans over $1,000,000 the standard Mortgage Broker fee is 1.25%.  Please bear in mind that a Retainer(Consulting) fee independent of the mortgage broker fee is charged on every commercial mortgage that is subtracted from the brokerage fee in the event it funds successfully.  The main reason a Retainer(Consulting) Fee is charged is that in many cases commercial loans fail to fund due to Location, Weak Financials, Appraisal Concerns, Environmental Concerns etc.  In some cases they fail because the client is able but unwilling to accept the Terms of the Lender.  The standard Non-Refundable Retainer fee for a Commercial Mortgage is $3,750 and is due at the beginning of the application process.  The Retainer Fee is applied towards the final Broker Fee.  Applications that involve foreclosure have a standard fee of 2% of the loan amount with a standard fee of $4,000 for amounts under $200,000.

 

Construction Mortgages : A fee applies that is paid by the client and can be included in the mortgage amount.  The fee applies both to prime and non-prime clients as Private and B Lenders do not pay a fee for construction mortgages.  In such a case, the standard fee is $3,750 for construction loans up to $215,000 and 1.75% of the loan amount for loans from $215,000-$1,000,000.  For Loans over $1,000,000 the standard Mortgage Broker fee is 1.25%.  Very few A Lenders pay a Broker fee at the beginning of construction.  In that case, it will be taken into account if a client qualifies with the A Lender that offers the construction program.

 

Business Loans – Lenders do not pay a fee in most cases for Business Loans.  In such a case the standard mortgage broker fee is $3,750 for Business Loans up to $215,000 and 1.75% of the loan amount for Business Loans from $215,000-$1,000,000.  For Loans over $1,000,000 the standard Mortgage Broker fee is 1.25%.  Please bear in mind that a Retainer(Consulting) fee independent of the mortgage broker fee is charged on every Business Loan that is subtracted from the brokerage fee in the event it funds successfully.  The main reason a Retainer(Consulting) Fee is charged is that in many cases business loans fail to fund due to Weak Financials, Viability Concerns, Credit Concerns, Extreme Fluctuations in Asset Value Concerns(Bitcoins, Stocks) etc.  In some cases they fail because the client is able but unwilling to meet the Terms of the Lender.  The Standard Retainer(Consulting Fee) is $3,500.   For the sake of transparency, in the event a lender pays a fee, I will only charge the difference to arrive at the standard fee of $3,500.  For example, on a $200,000 loan where the lender pays a 1% fee of $2,000, I will only charge the difference of $1,500 to arrive at the standard fee of $3,500.

 

Appraisal & Title Search –  They are both the responsibility of the borrower.  The cost of an appraisal is between $300-$600 depending on the location for residential properties and anywhere from $3,000-$15,000 for commercial properties.  A title search costs between $25-$30 and is a requirement with a lender approval to confirm that there is no other liens on a property by a Builder, Canada Revenue or any other third party.  The appraisal and the title search can be ordered at the same time from the selected appraisal firm.  Note that Appraisal Reports belong to the Lender and are not released to a client at the conclusion of a mortgage.

 

Fees when a client has a non-prime or weak credit or a beacon score under 600 are paid when the mortgage funds and never in advance in Residential Mortgages only.  This policy does not apply to Commercial and Business Loans per the preceding sections that clarify that a Retainer(Consulting) fee applies.  Residential Mortgage Fees also apply per the Exclusive Agency Agreement found at the very top of the page.  The mortgage broker fee is covered by loan proceeds when there is sufficient equity in an asset(Real Estate, Gold, Bitcoins, Silver etc.).  Alternatively, it is covered from client’s personal funds in the event of a purchase, refinance or construction mortgage where there is no extra equity in the property.

 

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