FAQ

Frequently Asked Questions

 

Helping mortgage brokers do their job more easily and effectively is important to us at CMI. So is creating an environment where you are able to meet the needs and expectations of your customers.

That’s why we developed this page of Frequently Asked Questions (FAQs). We want to provide you with the answers you’ll need for many of the important questions surrounding our products and services.

 

 

Mortgage Application

  • Q: What is a private mortgage? How is it different from my bank?
    A: A private mortgage is funded by individuals or smaller corporations rather than the bank, which allows for less restrictive lending guidelines. These mortgages are not insured, typically 1 year or less in duration and lend to 80% or less LTV.
  • Q: Do you lend Canada-wide, or only in Ontario?
    A: While we lend predominantly in Ontario, we also lend in British Columbia, Alberta, and Manitoba. We lend up to 75% LTV in major urban centres (Toronto, Calgary, Vancouver) and up to 65% LTV in rural areas. In Ontario, we will lend up to 80% on a case-by-case basis in urban markets.
  • Q: How do I submit deals?
    A: Deals are accepted via Filogix submission. You can submit mortgage applications on Filogix under the private lender dropdown with the name Canadian Mortgages Inc. In the Filogix system, change the "Lender Type" to Private, and for the "Lender" select Canadian Mortgages Inc.
  • Q: What documentation do you require for a mortgage application?
    A: The more documentation that you provide, the better terms your client will receive (and the turnaround will be faster as well). Providing income, an appraisal, and any legal documents will greatly streamline the process.
  • Q: How long is the approval process?
    A: With a complete broker submission package, we can have an approval and a commitment in your client's hands in as little as 2 hours.

Renewals

  • Q: Do you handle mortgage renewals?
    A: Yes. All the mortgages we lend on are managed by us. Unlike many private lenders, we do not charge the entire lender fee again at the time of renewal. Renewal fees are subject to market conditions, and the yield of the investment. Deferral of some or all of this fee is available on a case-by-case basis.
  • Q: What is your renewal process?
    A: Our Mortgage Broker partners are always reminded of upcoming mortgage maturity dates. We will send you a renewal reminder 90 days prior to the renewal date, additional reminders are sent thereafter. You can then reach out to your client to discuss their financing options. If the client contacts us directly regarding a renewal, we will always refer them back to you.

Fees

  • Q: Do you charge an Admin Fee?
    A: No, we don’t charge an Admin Fee. We do charge a Lender Fee, which is deducted from the advance.
  • Q: What is your Penalty Fee?
    A: We charge interest to maturity to a maximum of 3 months typically (i.e. if a mortgage is being paid out in the 11th month of a 1-year term, we will only charge interest for the remaining 1 month of the term).
  • Q: What are your Renewal Fees?
    A: Our typical Renewal Fee is 1 - 2% of the outstanding balance (subject to repayment history and review).

Mortgage Terms and Amortization

  • Q: Do you offer open terms?
    A: Yes, we do offer open term mortgages. We can also offer a variation of a closed mortgage. For example, we can structure the deal with a 12-month term that’s open after 6 months.
  • Q: Do you offer short-term mortgages?
    A: Yes, we offer shorter term mortgages, from 5-days to 6-months. We can also customize the term to coincide with the maturity date of an existing first mortgage if required.
  • Q: Do you amortize your mortgages?
    A: Yes, we can amortize our mortgages up to 40 years on a case by case basis. Our typical mortgage is interest-only, thus minimizing your borrower’s monthly payments.
  • Q: Can your mortgages be prepaid?
    A: Yes, we can set up the mortgage to be prepaid for the entire term or for a portion of the term depending on your client's needs.