Street Capital’s revamp of its stated-income program to eliminate a rate surcharge, accept commission income as employment type and include all the features and flexibility of its regular mortgages is being welcomed by brokers looking to satisfy BFS clients.
“This will definitely help me secure more clients,” agent Cristian Garrido of True North Mortgage told mortgagebrokernews.ca. “We use Street Capital, and I have worked with them in the past. The addition of commission income as employment (type) will eliminate a lot of the paperwork.”
Street lends up to 65 per cent loan-to-value on its conventional Stated Income Program. Still, anything above that is subject to an insurance premium (LTV tops out at the 90 per cent insurer maximum).
Although the income documentation is now more flexible, borrowers must still show solid credit, have a two-year track record and their own equity.
This product is available on 1- to 5-year fixed terms and 3- and 5-year adjustable rate mortgages.
Street declared its ambitions to gain chartered bank status in September of last year while reconfirming their commitment to the broker channel, with Street president Paul Grewal having told mortgagebrokernews.ca that “we will absolutely continue to support” the channel.
Some broker see the changes as further sign that the tightening economy is forcing lenders to become more accommodating to brokers as a way of encouraging sales.
First National recently restored 5 bps to brokers’ finder’s fees, following a similar and temporary move by it, Street and MCAP to increase broker compensation on some high-ratio insured deals.