PROGRAM OVERVIEW - ONTARIO GUIDELINES - LenSpect.com
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
BRIGHTPATH CAPITAL CORPORATION
Brightpath Capital Corporation is one of the
fastest growing private lenders in the industry.
We offer residential mortgage lending across
Ontario and British Columbia for a wide variety
of borrowers and situations.
PROGRAM OVERVIEW Dan Pauls
NATIONAL DIRECTOR, BUSINESS DEVELOPMENT
Cell: 519-500-3330
dpauls@brightpathcapital.ca
- ONTARIO GUIDELINES
www.brightpathcapital.ca
Version 2021.05 Programs and pricing are subject to change at any time without noticeABOUT BRIGHTPATH
• Brightpath Capital is a private lender headquartered in Waterloo, Ontario
• Our goal is to be a short-term solution to your borrower’s temporary problem
• We specialize in alternative lending on urban residential properties throughout Ontario
and BC
ONTARIO LENDING AREA
All residential properties across Ontario will be considered, with pricing adjustments made
based on location (Major Centre vs Small Town)
Major Centres
• Lending to max 90% LTV
o Ontario cities with a population of at least 50,000+
Small Town Lending Program
• Lending to max 85% LTV
o Towns located within 50kms of a city with a population of 50,000+
o Must be a residential property located within the residential part of town
* Information regarding lending areas, products and pricing for British Columbia is available
separately in our BC Broker Guide
PROPERTY TYPE
Residential lending only. No commercial use, mixed use, or agricultural zoning is permitted.
We look specifically for residential properties that demonstrate:
• Pride of ownership
• No deferred maintenance
• Marketability with ease of resale
• Renovations and flips will be considered – no construction mortgages
Dan Pauls
NATIONAL DIRECTOR, BUSINESS DEVELOPMENT
Cell: 519-500-3330
dpauls@brightpathcapital.ca 2WHAT KIND OF NICHE DEALS DO WE FUND?
NICHE AREA REQUIREMENTS
High LTV needed • Financing up to 90% LTV
• Requires satisfactory credit, property and exit strategy
• 1st/2nd bundle available on purchase or refi
No income docs or high • No TDS/GDS requirements
debt ratios • No income documentation requirements
- We will ask for 6 months bank statements to show account in
good standing and an NOA to show taxes are filed
Small Town lending • Towns that are within 50kms of a city of 50,000+
• Up to 85% LTV in small towns
Mortgage Arrears / Power • Need to understand the story and how a refi will help
of Sale Rescues • Property must be in good condition and marketable
Renovations • Renovations may be done by borrower or contractor
• We will lend on the “as is” value, rather than “as complete”
• Up to max 90% LTV on renos or flip projects
Equity Take Outs • Funds provided to borrower for investment, renos, future
purchase, etc
Outstanding Arrears and • We will payout CRA, tax arrears, property tax arrears,
Settlements consumer proposals, divorce settlements
• All outstanding balances must be included at funding
Temp Resident / Foreign • Borrower is a temporary resident or earns income outside
Income Canada
• Major centres only
Rentals • Maximum 4-plex
Single family, multi-unit, condos • Student rentals considered case-by-case
• No group homes or lodging homes
Bridge Financing • No firm sale required
• 3m or 6m open term
2nds Behind Reverse • Max 80% LTV
Mortgages • Exit strategy required
Title in Company Name • Personal guarantees required
• Numbered company or holdco
Dan Pauls
NATIONAL DIRECTOR, BUSINESS DEVELOPMENT
Cell: 519-500-3330
dpauls@brightpathcapital.ca 3KEY BRIGHTPATH POLICIES
Take a moment to understand some of our key lending policies:
POLICY AREA REQUIREMENTS
Equity Requirements • We require minimum $50k equity left over in any deal that
we finance.
ie: Appraisal of $275k, our max advance would be $225k
LTV • Max 80% 1sts and 90% 2nds - inclusive of lender and broker
fee
Property Location • Properties located in major centres (population 50,000+) or
within 50kms of a major centre
• Property must be urban residential and not rural or remote
Min / Max Loan Amounts • No min loan amount
• Max property value of approx. $1.5M (exceptions available)
Appraisal • Broker orders own appraisal
• Appraiser must be CRA or AACI certified
Broker fee • Broker determines own fee and we will take it from the
proceeds of the total mortgage amount
Legal Fees • 1st or 2nd mortgage - $2100
• 1st / 2nd bundle - $3500
Registration • We register to 100% of the property value on all deals
• Can reduce this on exception with stronger deals
Max property size • We will ask for appraised value of property + max 2 acres
Renewals • Renewals available for borrowers with good payment history
- Full rate and fee charged at renewal to maintain yield
Dan Pauls
NATIONAL DIRECTOR, BUSINESS DEVELOPMENT
Cell: 519-500-3330
dpauls@brightpathcapital.ca 4BRIGHTPATH PRICING MATRIX
• Risk based pricing - depending on LTV, credit score, city size, and risk adjustment
premium
• Best pricing when atSUBMISSION PROCESS
• Contact BDM Dan Pauls at dpauls@brightpathcapital.ca or cell 519-500-3330 to discuss
your deal
• Submit deal to us on Filogix or Velocity
o Include underwriter notes and desired broker payment
• Underwriter reviews application and provides terms to broker
• Broker discusses terms with client and then requests commitment from underwriter
• Broker orders appraisal from Brightpath appraisal list
• Broker submits all other required docs to Underwriter assigned to the deal
• Lawyer is instructed once all conditions have been fulfilled
DEALS WE WON’T DO
(The following are examples and not an exhaustive list)
1. Properties with an apparent lack of “pride of ownership”: ie. hoarders, deferred
maintenance issues
2. Farm or agricultural zoned properties / horse boarding / livestock / hobby farms / land
rented for farming
3. Commercial or mixed-use properties
4. Properties on leased land
5. Former church conversions or former school conversions
6. Mobile homes
7. 3-season cottages
8. Properties where sole source of heat is a fireplace or an outdoor furnace
9. Properties without year-round road access
10. Student properties, group homes or lodging homes
Dan Pauls
NATIONAL DIRECTOR, BUSINESS DEVELOPMENT
Cell: 519-500-3330
dpauls@brightpathcapital.ca 6You can also read
