Think Magnum Money
Magnum is a private lender specializing in residential near-prime and sub-prime 1st and 2nd mortgages in Alberta. Our funds are flexible and we can lend in situations where banks aren’t able or willing.
Types of Financing
We consider at funding up to 80% with fees included in situations with good cash flow and some blemishes on their credit in major centres. Around 65% with fees included for mortgages in small towns and rural deals we would cap out at 50-55% LTV.
We can finance 100% of the new purchase with additional security by way of blanketing their principal residence, revenue properties or some other form of adequate additional security. This allows all available cash to be used for the renovation which could result in a quicker sale or higher price.
Refinance/Equity Take Out
With a story that is reasonable and a deal that makes sense we will consider all deals around 70% LTV. Other purposes such as: business start ups/investments, divorce & bankruptcy settlements, are on a case by case basis to meet the needs of the borrower.
- Lending Rates
- Lending Areas
- Legal and Broker Fees
- Loan Terms
- Commitment Periods & Application Turnaround
Click Link for Lending Rates
We lend all over Alberta in urban and rural locations regardless of the size of the community or remoteness.
Legal and Broker Fees
1st & 2nd Mortgage fees to Magnum are outlined on the “Lending Rates” tab. Both are negotiable based on increase in rate for Small towns and obscure locations. Fee structure for Major Centers is also provided on the”Lending Rates” tab.
Borrower is to pay legal fees, (approximately $1,100 plus $150 for title insurance) and broker fees out of disbursements. The appraisal is to be paid upfront.
- Interest Rate is a minimum of 4.95% on 1st mortgages and 7.95 on 2nd mortgages both compounded semi-annually.
- 1 Year terms
- Interest-Only Payments
- No Pre-payment Penalty: Fully open mortgages that can be prepaid at anytime
- Payment options: Pre-authorized debit withdrawal / Post Dated Cheques: Monthly payments
Commitment Periods & Application Turnaround
We strive for turn around time within an hour of receipt of the application during regular business hours if all necessary information is provided upon submission. Our commitments will be open for acceptance as long as necessary and ask that you please let us know when a deal won’t be going forward. Once we have received all the necessary documents we will let you know as soon as we have instructed our lawyers.
Please provide us with the client’s lawyer information before hand. Our lawyer will then forward all the documents to the borrower’s lawyer for execution.
- Acceptable Security
- Verification of Income
- Business for Self
- Debt Service Ratios
- Credit History
Acceptable Types of Security
- Single Family Residential
- Town Houses
- Apartment Condos
- Multifamily Residential Properties
- Raw land as additional security to be blanketed
Verification of Income
- Last year’s Tax returns or Notice of Assessments
- Letters of employment on employer’s letterhead
- 12 Months bank statements
- Financial Statements
- Last 2 most recent paystubs
Business for Self
- Most recent business financial statements
- Last year’s NOA
- Copy of business license
- 12 Months bank statements.
Debt Service Ratios
- There are no set in stone numbers for debt service, rather the deal has to make sense.
- If an applicant is not meeting their obligations currently and we are going to be increasing their monthly debt load we most likely will not look at doing the deal.
Bankruptcy, Collections or Judgements
We’ll look at discharged bankrupts regardless of date of discharge, whether credit has been re-established or not. We’ll consider financing a borrower currently in bankruptcy with consent from the trustee.
We will analyze their current and past credit payment history as a whole with collections and judgements to help determine the character of the applicant.
We’ll refinance foreclosures if reason for foreclosure is verifiable and cause of foreclosure has been corrected.
We will look at using any appraisals within the last 60 days, but reserve the right to request a new appraisal if adjustments in the appraisal or comparables used are not justified. All appraisal costs are to be paid by the borrower and paid upfront.