Your questions, answered.

All Frequently Asked Questions

Will bankrupt applicants qualify for a mortgage?

Client must be discharged. A reasonable explanation for bankruptcy and good equity will be required.

Will Pillar register a mortgage in a corporate name?

Pillar will register a mortgage in the corporate name. We will require articles of incorporation and personal guarantees of the principles.

Does Pillar finance acreage?

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.

What are the parameters of a residential deal?

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.

Is bridge financing available?

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

What do I do if I can't make my scheduled mortgage payment?

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.

Can Pillar finance blanket mortgages?

If additional equity is required, we will blanket on a second or third property; this is possible even in second position.

What forms of payments do you except for mortgage payments?

A pre-authorized debit will be set up from your bank account. Credit card payment and E-Transfers will not be accepted.

How do I go about changing my payment schedule?

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.

What do I need to do if I want to change the account which my mortgage payment comes out of?

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.

What do I do when my mortgage term is up?

We will send out a renewal package a couple of months prior to the terms maturity date.

What do I do if I want to sell my house, or have sold my house?

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.

Do I need to get my own house insurance or do you look after that?

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.

Why do you insist on taking a tax component within my mortgage payment to pay my property taxes?

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.

Can I make a lump sum payment towards my mortgage?

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.

Why do you register as "Computer Share?"

FMIC has a requirement through our prospectus to hold assets by a trustee – That is Computer Share.

Why do you need an “OWL Search”?

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.

Why do you need your whole name on insurance binders?

It is required to be spelt out as it is the “Legal Registered Name”.

Where do you lend?

We currently lend in all of Ontario.

Do you do 2nd Mortgages?

No, we are only able to register in first place.

When is a Phase One required? Why do you need A Phase One?

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.

Will you consider previous bankrupts?

We do offer financing on clients with fully discharged bankruptcies.

Will you consider a client who is currently in a Consumer Proposal? Do they have to be paid out

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.

Why do you need all of the pages of documents? Eg. NOA

When requesting all pages of each document, this is our effort to verify the validity of documentation in order to prevent fraudulent activity.

Why don’t you accept a drive-by appraisal?

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.

Why do you need Take-out financing? Why is exit so important?

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.

What is the relationship between Pillar/FMIC/Computershare?

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.

Do I make payments on a construction loan? Why is there a PAC form?

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.