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If there’s any indication that we’re entering a new chapter, it’s this. After cutting interest rates early on in the pandemic, the Bank of Canada has implemented another rate hike aimed at stemming inflation – and it’s a big one. Read our latest article to learn what it means for you and your clients, plus access resources to navigate lending in today’s construction market.
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In a commission-based business like rural and construction lending, the state of the market impacts your bottom line. And it’s no secret that the Bank of Canada’s interest hikes have had a tremendous impact across all markets, affecting the pace and capacity for growth in the short-term. With all the changes it can be difficult […]
Construction Articles
Rate hikes by the Bank of Canada have led to a slowdown in real estate markets across much of the country, but what does this mean for homebuyers and mortgage brokers in Ontario? With the big banks raising their mortgage rates, many prospective homebuyers have been hitting pause to assess the market. With this, we’re […]
Residential & Rural Articles
Where does Pillar lend? This is one of the questions our team hears most frequently from brokers who are new to our mortgage lending operations. Our answer: we lend Ontario-wide, from east to west, north to south. Other lenders often say the same thing, but when you start submitting mortgage applications, you often come up […]
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All Frequently Asked Questions
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.
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.
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.
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 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.
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.
Will you consider previous bankrupts?
We do offer financing on clients with fully discharged bankruptcies.
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.
Do you do 2nd Mortgages?
No, we are only able to register in first place.
Where do you lend?
We currently lend in all of Ontario.
Why do you need your whole name on insurance binders?
It is required to be spelt out as it is the "Legal Registered Name".
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.