Lending Guidelines

  
Borrower Qualifications

  • Minimum Beacon score of 660 for all Transactions
Down Payment

    Purchase Transactions

    1 & 2 units: 95% LTV 

  • Down payment must be from borrowers own resources or a gift in accordance with the insurer guidelines
  • Property value ≤ $500,000 - 5% down payment required
  • Property value > $500,000 and < $1,000,000 - 5% down payment required up to $500,000, with an additional 10% down payment on the portion of the home value above $500,000

  • 3 & 4 units: 90% LTV
Bankruptcies

  • MMC will not entertain any files where a borrower has previous insolvencies (including Bankruptcies, Consumer Proposals, and Credit Counselling)
Lending Area

  • British Columbia
  • Saskatchewan
  • Manitoba
  • Ontario
  • New Brunswick
  • Nova Scotia
  • Prince Edward Island
  • Newfoundland
  • Alberta (Calgary and Edmonton only! 50km radius)
Property Types

  • Single family dwellings, multi-unit (up to 4 units)
  • Owner-occupied only
Appraisals

  • A full appraisal is required for all New Construction properties
  • Appraisals are based on the property and maximum of 5 Acres
  • Appraisals are ordered by the borrower and all cost associated are the responsibility of the borrower
Loan Amounts

  • Minimum: $60,000, Maximum: $750,000
  • Amounts over $750,000 will be considered on an exception basis
Loan-to-Value (LTV)

  • Conventional up to 80% of the property value (up to 70% for all Alberta and Windsor)
  • Up to 95% of the property value for High-Ratio Purchases
  • Maximum High Ratio Debt Servicing is 39% GDS & 44% TDS
  • All products are qualified on the Bank of Canada Benchmark Rate
Salaried Borrowers

  • Minimum 2 years with current employer confirmed with a letter of employment and a current paystub (less than 30 days old)
  • If less than 2 years, preferably in the same industry with no probation. Will be considered on an exception basis
Commissioned or Seasonal

  • Letter of employment and current paystub ( less than 30 days old)
  • 2 years Notice of Assessment (NOA)
Self-Employed (Verifiable Income)

  • Minimum 3 years tenure in Business
  • Current Business License and/or Articles of Incorporation is required
  • Most recent 2 years, Accountant Prepared Business Financials (if incorporated) or T1 Generals/Tax Returns (if Sole Proprietor or Partnership), along with supporting NOA’s
  • Income to be verified utilizing 2 year average earnings line 150
Heating Costs

  • Calculation used: sq. ft. x 0.75 / 12
  • Minimum $500.00 for Condos
  • Minimum $800.00 for Houses