I had a very brief discussion with Susan Thomas at our office few weeks ago. She visited us to discuss new developments and requirements in the mortgage underwriting.
So, I asked her few questions about National Bank and its products. Obviously they were all mortgage related. We talked about recent difficulties with high GDS ratio deals and various other aspects of current lending practices.
During our discussion I learnt many things which I did not know. One cool thing about National Bank – that its BFS loan has no premium on the rate. Many lenders charge a 25 to 100 BPS premium on the rates for a BFS deal but NBC does not.
Following the meeting I thought of writing this article. The idea was to look at mortgage products National Bank offers. Following are some interesting mortgage choices offered by National Bank.
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Cash Back Mortgage:
National Bank offers 5% cash back mortgage on a five years fixed rate mortgage. Apparently the high interest rate is the biggest drawback of a cash back mortgage but it is still an attractive option to many. It is available on new or re-finances.
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Alt – A / BFS:
National Bank has a limit on how much a self-employed borrower can borrow and it varies based on geo-location. The insured deals are are typically Genworth insured. (CMHC has a between 2yr to 3yr requirement)
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Cottage:
A borrower can get a mortgage from NBC to buy a Cottage and it can be insured or conventional.
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Made to Measure:
This is a very interesting mortgage offered by National Bank. A borrower can break the mortgage up to 99 pieces of fixed or variable rate mortgage. Each part can have its own amortization, term, rate, and payment frequency. Revolving option is also available if you want to take some money out. Very interesting and useful mortgage but not properly publicized.
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Rental:
The bank can fund up to 16 doors.
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All-in-One:
This is a typical Readvanceable HELOC mortgage loan.
National Bank is yet to come up with a revised Broker Kit incorporating all the changes after the new regulation, but we were advised to be receiving one soon.
These are few mortgages offered by National Bank. For more options please contact your mortgage broker.
