Client must be discharged. A reasonable explanation for bankruptcy and good equity will be required.
Pillar will register a mortgage in the corporate name. We will require articles of incorporation and personal guarantees of the principles.
We will consider 50% of the value of raw land; in certain circumstances, like a serviced building lot, we may go as high as 60%. If a home has a large acreage, that is not an operating farm, Pillar will consider 80% of the total value of the home and land, not just five or 10 acres.
Pillar is interested predominantly in marketable real estate. We will finance up to 80% of the value of a home even in rural areas. The 80% limit is not reduced because of well and septic systems on the property or being located in rural areas.
Our bridge financing mortgages are open for repayment without penalty. Usually the mortgage is in place for a short time until the borrower sells an existing home or in the case of construction mortgages completes the project. Permanent or take-out financing must be arranged; therefore, few questions are asked with respect to debt coverage
We ask that you contact our Mortgage Administration Department at least 48h prior to your scheduled payment due date to make payment arrangements. A deferral fee in the amount of $50.00 will be charged for any payment that needs to be moved. We require the changed payment to be made up within 10 business days. Any payments that are not honored by the bank are subject to a $200.00 NSF fee.
If additional equity is required, we will blanket on a second or third property; this is possible even in second position.
A pre-authorized debit will be set up from your bank account. Credit card payment and E-Transfers will not be accepted.
We ask that you call our Mortgage Administration Department to go over your options. An interest adjustment may be required in some cases, so not to interrupt the amortization of your mortgage.
We ask that you contact our office at least 48h prior to your next payment date, and we will send you a new PAC form to fill out and send back with a void cheque from your preferred account.
We will send out a renewal package a couple of months prior to the terms maturity date.
We will require your Lawyer to send a formal Request for Discharge indicating the closing date. We will then forward a payout statement indicating the amount required to pay off the mortgage. Once a payout request has been received, your mortgage payments will be stopped. Discharge documents will be sent to your Lawyer once we successful receive the funds to fully payout your mortgage.
It is your responsibility to obtain a Broad Form/All Risk insurance policy including: Fire, Flood, Earthquake, Blanket Building By-laws and Sewer/Septic Backup (if applicable), in an amount not less than the full mortgage amount. All insurance must name Computershare Trust Company of Canada C\O Frontenac Mortgage Investment Corporation as loss payee, which we look after. If your policy is cancelled for any reason, we will make contact to understand why. If you are unable to obtain insurance, we will place the insurance (dwelling only), and charge it to your mortgage including an Admin Fee. You will receive a letter in the mail with the repayment schedule for the fee and premium paid.
As per the provincial legislation, if property taxes go without being paid for 3 years, the municipality may recover unpaid property tax through the sale of the house. This ranks above our mortgage. By making it a mandate that we pay the taxes on your behalf, we ensure the house will not go to tax arrears sale.
You may pay 20% of the current outstanding principal amount of the mortgage. The ability to make this lump sum payment is only available on the anniversary date of the mortgage. Any payment above and beyond the 20% will be subject to a prepayment fee.
FMIC has a requirement through our prospectus to hold assets by a trustee – That is Computer Share.
It is an internal policy to ensure that no executions have been placed on any of our clients province-wide as that is our current lending area.
It is required to be spelt out as it is the “Legal Registered Name”.
We currently lend in all of Ontario.
No, we are only able to register in first place.
Our policy requires a Phase One to be completed on all files where there is a commercial component or zoning on the property is listed as “Commercial” to check for any environmental concerns on the subject property. Eg. Mixed-Use, Commercial Vacant Land.
We do offer financing on clients with fully discharged bankruptcies.
Yes, we will consider clients who are currently in a Consumer Proposal, but the balance of the proposal must be paid either prior to funding or from the proceeds of the financing.
When requesting all pages of each document, this is our effort to verify the validity of documentation in order to prevent fraudulent activity.
One of the most important parts of each file is our collateral and we want to ensure that we have supporting value in the subject property to protect our investment.
As a short-term lender, our focus is improve the financial situation of our clients. Upon completion of a build it is in the best interest of our clients to move to a lower rate more traditional mortgage.
FMIC (Frontenac Mortgage Investment Corporation) is the lender (fund); FMIC has a requirement through its prospectus to hold assets by a trustee – That is Computershare; Pillar has an administrative agreement with FMIC where it underwrites and administers all mortgages for them.
During the construction process we do not take a regular mortgage payment. Interest accrues and is taken from each progress advance. In cases where there may be more than 45 days between draws, we may request to take an interest only PAC payment to keep the interest from getting too high for the client and therefore the PAC form assists with the collection of these payments.