On the cusp of another high season in the real estate industry, RiverRock Mortgage Investment Corporation has some competitive products on offer.
“We offer first and seconds, but in our second mortgage program we have a couple of things: A 9.99% on a second and our fee is 3%, but if you get a second for $100,000 or less, it’s almost like no fee because we allow clients to use their own lawyer, so there’s only one set of lawyer fees,” said RiverRock’s President and CEO Nick Kyprianou. “Other MICs require you to use your lawyer and their lawyer, and that creates an additional $2-3,000 of cost, but with us you just use your lawyer and save that money.
“The other thing we’re doing is if you give us a copy of a paid appraisal invoice, we pay back that money to the broker on closing. I don’t think anyone else is doing that. It’s a campaign we’re doing right now in anticipation of the fall season.”
On first mortgages, RiverRock offers a 6.99% rate at up to 80% LTV, and once again, clients save money by paying one lawyer fee instead of two.
RiverRock is brimming with capital and making a deep push into the broker channel, which is why it’s rolling out a suite of competitive products.
“We think we have the best service in the industry and we’re the most flexible lender,” said Kyprianou. “We’ll take a self-declared letter with no supporting documents; we don’t have a minimum credit score; we don’t have servicing ratio requirements. We’re just focused on the real estate and we think that if we can initiate some of these campaigns for more people to give us a try and see what an easy experience it is to deal with us, they’ll keep using us because once a broker works with us, they always come back.”
Given how many more brokers use MICs today than in years past, Kyprianou wonders why there are still so many co-brokering deals. For one, the closing ratios aren’t favourable to anybody involved, least of whom the borrower, says Kyprianou.
“I’m not sure why, once a deal falls off the institutional space, we see so much co-brokering,” he said. “Why not make a little more money and get your client a better deal instead of charging more fees?”