Lending Guidelines

  
Borrower Qualifications

  • Minimum Beacon score of 625 for Insurable Transactions
    (Lower beacon score exceptions may be granted on an individual base for applicants who have displayed timely repayment. Contact your underwriter or RVP for more details.)
  • Minimum Beacon score of 680 for Uninsurable Transactions
    (No exceptions)
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