Lending Guidelines

Check out our lending guidelines* to see if your clients qualify. Got a great deal that doesn’t quite meet these guidelines? Email us at brokercentre@coastcapitalsavings.com.

Co-brokered deals pose a potential risk. It also depletes our queue resources and makes it difficult for our underwriting team to service our valued Broker partners and their customers.

Effective immediately, we will no longer accept co-brokered applications for brokers who are not registered at your office through FICOM.

  • Manufactured homes (unless on borrowers own land)
  • Progressive Mortgages - owner occupied or spec
  • Vacant land (serviced or un-serviced)
  • Leasehold
  • ¼ shares, hotel suites, boarding houses
  • Operating farms
  • Previous grow-ops (may be considered if have written certification and occupancy permits/comfort letter issued by the city. As well, they must be insured through CMHC or Genworth with a maximum amortization of 25 years, and a rate premium will be added)
  • Leaky condos that haven’t been fully re-mediated
  • Co-ops
  • Properties in a rental pool

Guidelines

Standard high-ratio insured guidelines apply:

  • Primary residence only (1 to 4 units)
  • While CMHC and Genworth may transactionally insure a single application, it may not meet the insurable parameters (see “Ineligible” below)
  • New purchase and Straight Transfer-In’s only ** (See Transfer-In section below)
  • Maximum 80% LTV
  • Amortizations equal to or less than 25 years for a purchase
  • Qualify at the greater of the contract rate +2% OR the current Bank of Canada Benchmark Rate
  • No income considered from borrowers with a beacon score below 600 or no beacon
  • Purchase price less than $1M 
  • No guarantors, except for a spouse that will be occupying the residence
  • Standard conventional property evaluations apply

Rental Income

Suite(s) in Residence:

  • For borrowers with a beacon of 680 and higher, 100% of the rental income can be added to the borrower’s income for all suites that meet our own internal criteria.
    • Taxes and heat can be excluded
    • For borrowers with a beacon below 680, only 50% of the rental income can be added to the borrowers income
    • Coast Capital Savings will consider rent from a maximum of two suites

Non-Subject Rental Properties:

  • Standard Coast Capital Savings Net Rental Income Calculation can be applied:
    • Net Rental Income = Gross Rental Income - Expenses [Payment + Property Taxes + 50% of Strata + Vacancy Allowance (5%) + Property Maintenance (15%)]

HELOCs

HELOCs are allowed both concurrently and as a Sub-Advance behind an existing insurable mortgage.

  • Apply standard Coast Capital Savings HELOC qualification guidelines:
    • The greater of the contract rate +2% OR the 5 year Bank of Canada Benchmark Rate

**Transfer-Ins

 

Straight transfer in’s qualify for the Insurable rate offering.  There must be no new funds, with the exception of a $3,000 max allowance for costs related to the transfer (i.e. legal costs, admin fees, penalties).

The original purchase price must have been less than $1M:

  • Current value of the home may be over $1M
  • Due diligence is required to ensure the purchase price was below $1M in cases where the original purchase price being less than $1M may be in doubt (ex. current value is over $1M or just under $1M)
  • Original purchase price verification can include the Sales History in the appraisal, Sales History from appropriate Landcor valuation product or the Seller’s Statement of Adjustments from the time of purchase

Amortization must be the lesser of the current remaining amortization or 25 years:

  • Due diligence is required to determine the remaining amortization.
  • Obtain the most recent mortgage statement
  • A Mortgage Form B may show the original amortization if it is not a “Current and Running Account”

A mortgage that is currently High-Ratio Insured is not eligible for the insurable product. It must be transferred in as insured and it must be currently insured with either CMHC or Genworth

Strata Minutes

Not required to review strata minutes unless it is discovered that further investigation is needed.

Ineligible

Not all transactionally Insured High Ratio scenarios will qualify under Insurable parameters. The following property types are ineligible:

 

 

 

  • Leasehold Properties
  • Housing located on Reserve or First Nation Lands
  • Rentals
  • Land Only
  • Recreational Properties
  • Second Home
  • Age Restricted
  • Refinances (ETO)

 

  • Eligible for a standard, Multi-Purpose Mortgage
  • Maximum LTV ratio – 80% of the 1st $1,000,000 and 65% of the remaining value (based on appraised value). Revolving HELOC portion cannot exceed 65% LTV
  • Maximum GDS/TDS ratio:
    • 39/44% for beacons 680+
    • 35/42% for beacons 620 - 679
  • Maximum amortization – 30 years
  • 100% add back to income excluding taxes and heat for suite income (up to 2 suites)
  • Maximum mortgage $2,500,000
 
  • Eligible for a standard or Multi-Purpose Mortgage
  • Maximum LTV ratio – 80% of the 1st $1,000,000 and 65% of the remaining value (based on appraised value). Revolving HELOC portion cannot exceed 65% LTV
  • Maximum GDS/TDS ratio
    • 39/44% for beacons 680+
    • 35/42% for beacons 620 - 679
  • Maximum amortization – 30 years
  • For both subject and non subject rental properties, rental income is calculated based on the following:
    • Net rental income = Gross Rental Income - Expenses [Payments + Property Taxes +50% of Strata + Vacancy Allowance (5%) + Property Maintenance (15%)]
  • Maximum mortgage $2,500,000

  • Eligible for a standard or Multi-Purpose Mortgage
  • Best rates available for all CMHC and Genworth insured mortgages
  • CMHC-max LTV 95% for purchase
  • Purchase price must be below $1,000,000
  • Maximum amortization – 25 years
  • Maximum GDS/TDS as allowed by the insurer
  • Use of rental income as allowed by the insurer

For new immigrant applicants to secure financing of their principle residence

Not intended for the purchase of other property types, e.g. rental, recreational, etc.

Equity Lending should not be granted on the sole basis of low LTV

  • New immigrants must have immigrated to Canada within the last 3 years
  • Must obtain the applicant’s Permanent Resident Card and either:
    • Must have their IMM 1000 – “Record of Landing “ in Canada OR
    • their IMM 5292 – “Confirmation of Permanent Residency”
  • If residency is greater than one year, obtain most recent NOA confirming taxes paid
    • use line 150 for income on the application
  • If residency is less than one year, no income verification required
    • enter $1 for income on the application
  • No maximum GDS/TDS
    • If accounts are held at another Financial Institution the statement must be dated within 60 days of application
    • Applicant must have a minimum of 6 months payments on deposit in addition to the down payment
  • Maximum Term is 5 years
  • Maximum amortization is 30 years
  • Maximum mortgage $1,500,000 per property (total connected borrowings $3,000,000)
  • Maximum LTV 65% on 1st $800,000 of the appraised value, 50% on balance
  • Appraisals are required on all Equity Lending applications regardless of LTV
  • HELOC ineligible
  • CCS 1st mortgage only
  • Owner occupied properties only
  • Primary Market area only
  • Down Payment and Gift letters
    • Funds must be in Canada at the time of application
    • Secondary financing not permitted
    • Not required for refinances
  • A minimum .75% rate risk premium will apply
  • A risk based application fee may apply

For self-employed applicants who cannot qualify under traditional debt service guidelines to secure financing of their principle residence.

Not intended for the purchase of other property types, e.g. rental, recreational, etc., or equity take outs for injection into their business.

Equity Lending should not be granted on the sole basis of low LTV.

  • Income:
    • Must be verified by most recent NOA to confirm taxes paid
    • Use line 150 income from the NOA on the application
  • Verification of Self Employment via one of the following:
    1. Business license
    2. GST license or GST return
    3. Coast Capital Savings business account with minimum of 2 years in good standing
    4. Most recent T1 General, including Statement of Business Activities
    5. Most recent Accountant prepared Financial Statements
  • Minimum beacon score of 680
  • No Maximum GDS/TDS
    1. the borrower must have strong net worth and
    2. property must have an average or better rating on the appraisal
  • Maximum term 5 years
  • Maximum amortization 30 years
  • Maximum mortgage $1,500,000 per property (total connected borrowings $3,000,000)
  • Maximum LTV 65% on 1st $800,000 of the appraised value, 50% on balance
  • Appraisals are required on all Equity Lending applications regardless of LTV
  • HELOC ineligible
  • CCS 1st mortgage only
  • Owner occupied properties only
  • Primary Market area only
  • No previous bankruptcy for all applicants
  • Down Payment and Gift letters
    • Secondary financing with another FI is allowed up to 80% LTV
    • Not required for refinances
  • A minimum .75% rate risk premium will apply
  • A risk based application fee may apply

Equity lending for employed or retired individuals is designed for applicants who cannot qualify under traditional debt servicing requirements, but have proven net worth containing liquid assets that can support debt service requirements.

Equity Lending should not be granted on the sole basis of low LTV.

  • Income:
    • Must be verified by the most recent YTD paystub (within the last month), pension statement or direct deposit and most recent NOA to confirm taxes paid.
    • Use line 150 income from the NOA on the application
  • Minimum beacon score of 680
  • No maximum GDS and TDS but the applicants must have strong proven net worth and property must have an average or better rating on the appraisal
  • Applicants must have verifiable liquid cash resources to cover mortgage payments and property taxes for the term of the loan to a maximum of 3 years. Liquid assets cannot be borrowed
    • e.g. if the applicant takes a 2 year term they would only need 2 years payments whereas if they took a 5 year term they would need only 3 years payments
  • Maximum term 5 years
  • Maximum amortization 30 years
  • Maximum mortgage $1,500,000 per property (total connected borrowings $3,000,000)
  • Maximum LTV 65% on 1st $800,000 of the appraised value, 50% on balance
  • Appraisals are required on all Equity Lending applications regardless of LTV
  • HELOC ineligible
  • CCS 1st mortgage only
  • Owner occupied properties only
  • Primary Market area only
  • No previous bankruptcy for all applicants
  • Down Payment and Gift letters
    • Secondary financing with another FI is allowed up to 80% LTV
    • Not required for refinances
  • A minimum .75% rate risk premium will apply
  • A risk based application fee may apply

Specialty Mortgage Guidelines

We recognize that not all mortgage applicants have the same needs and that every applicant has a story or a background. As a local credit union, we’re here to help.

We offer alternative mortgage products to help those with low beacon scores, and Rental Equity property financing for those who cannot qualify under traditional guidelines.

Equity Lending is designed for applicants who cannot qualify under traditional debt servicing requirements, but have proven net worth that can support the debt service requirements.

The Alternate Equity Product is a specialized, higher risk product that is used for mortgages where the applicant has impaired credit.

Equity Lending should not be granted on the sole basis of low LTV.

  • Self Employed income:
    • T1's and/or Financial Statements must display that the business is viable and has resources to make the mortgage payments
    • Use the 2 year average of Line 150 of the NOA's
    • Last 2 years NOA's & last 2 years T1 Generals (must include Statement of Business Activities), or
    • Last 2 years NOA's and Accountant prepared Financial Statements
    • Or 6-12 months of Business account bank statements showing sufficient cash flow to cover the monthly payments
  • Employed / Retired income:
    • Most recent YTD paystub (within the last month), pension statement or direct deposit and most recent NOA to confirm taxes paid
    • Use line 150 income from the NOA on the application
    • Must have proven Net Worth containing liquid assets that can support debt service requirements
  • Minimum Beacon 550
  • No maximum GDS/TDS, but the applicants must have strong net worth and property must have an average or better rating
  • Maximum amortization is 30 years
  • Maximum mortgage $1,500,000
  • Maximum LTV 65% on the first $800,000 plus 50% on the balance
  • Appraisals are required on all Equity Lending applications regardless of LTV
  • HELOC ineligible
  • CCS 1st mortgage only
  • Owner-occupied properties only
  • Primary market area only
  • No Hobby Farms
  • No previous bankruptcy for all applicants
  • Down Payment and Gift letters
    1. Secondary financing with another FI is allowed up to 80% LTV
    2. Not required for refinances
  • A minimum 1.50% rate risk premium will apply

Rate Premiums and Fees

Beacon Range Loan to Value 0 - 65%
600 - 679 125 - 200bps premium based on risk + up to 1% fee at lenders discretion
550 - 599 175 - 300bps premium based on risk + up to 2% fee at lenders discretion

This is a specialized, higher risk product that is used for mortgages where the applicant has impaired credit due to a life changing event.

It is not designed for applicants who have a track record of habitual slow payments on their bureau.

Unproven or re-establishing credit will be considered with the full customer story.

  • No minimum beacon
  • Full income verification is required
  • Maximum GDS/TDS is 35/42
  • Maximum amortization is 30 years
  • Maximum mortgage $750,000
  • Maximum LTV 75%
  • Appraisals are required on all Equity Lending applications regardless of LTV
  • HELOC ineligible
  • CCS 1st mortgage only
  • Owner-occupied only
  • Primary market area only
  • No Hobby Farms
  • Down Payment and Gift letters
    • Secondary financing with another FI is allowed up to 80% LTV
    • Not required for refinances

Rate Premiums and Fees

Loan to Value
Beacon Range 0 - 65% 65.01 - 75%
600 - 619 100 - 150bps premium + 1% fee at lenders discretion 150 - 200bps + up to 1% fee at lenders discretion
<600 Fee based on risk 150 - 275bps premium +2 % fee at lenders discretion 175 - 300bps premium based on risk + up to 2% fee at lenders discretion

Property Valuation Guidelines

Property Tax Assessment*

The current year Property Tax Assessment may be used to confirm the property value when all the following conditions are met;

  • The mortgage amount is not greater than $800,000
  • LTV is not greater than 65% of the most recent overall assessed value
  • Must include a breakdown of land and improvements
  • The improvement (building) value on the Property Tax Assessment is not less than $50,000

Appraisal*

The property must have a better than “fair” rating and the amortization may not be greater than the property’s remaining economic life.

The appraisal must be:

  • Prepared by a Coast Capital Savings approved appraiser
  • Ordered through Solidifi
  • Not more than 6 months old
  • Excluding the value for outbuildings including barns, workshops, and cabins
  • A minimum of 475 square feet for apartment style condos. 800 square feet for all other dwellings.

* Guidelines are subject to change without notice
Contact us.
For more information, email our Broker Centre.
Toll-free fax: 1.866.399.8080