In most cases, when you are only borrowing to a maximum of 80% of your home's value, the mortgage is granted mainly on the equity in your property, not necessarily on your past credit history or confirmable income. Over this amount, your income and credit history is looked at more closely. Restrictions may apply on condominiums, smaller urban or rural areas and on higher priced homes or income properties.
Yes. The same as Canada Mortgage & Housing Corporation (C.M.H.C.) the premium is based on the percentage advanced. In some cases, the H.E.L.P. premium is similar to the combined first and second mortgaging where financed under a C.M.H.C. 1st. mortgage.
The H.E.L.P. Home Equity Loan Program is a lending plan formulated predominately by self-directed R.R.S.P. investors who's funds are administered by Canadian Banks and Trust Companies. As an alternative to stocks, bonds and mutual funds, these self-directed R. R.S.P.'s are also used to fund mortgage investments. These self-directed R. R.S.P. investors may also use private funds, in additional to the Trust Company and Bank managed R.R.S.P. funds.
Your loan request will be reviewed and you will receive a response by email or phone, usually within 48 hours. Once approved, we will contact you by sending a Loan Proposal detailing terms of the loan.
The interest rate for the H.E.L.P. program is currently 6.99% to 7.85%. All renewals are tied to the Royal Bank of Canada rate. So that clients are assured of an ongoing low second mortgage rate, any renewal can never exceed the greater of 7.85% or a maximum of 3.85% above the Royal Bank of Canada 1 yr. open first mortgage rate.