I have a question...

1. Where does Reliable lend? ~ See "Lending Area" under the "Mortgage Brokers' Information" tab and this lists all of our lending areas.

2. Which Appraisers does Reliable accept? ~ See "Approved Appraiser List" under the "Mortgage Brokers' Information" tab and this is who we will accept.  There are sometimes exceptions but generally this is who we rely on.

3. What is the maximum loan-to-value ratio that Reliable will lend to? ~ We lend up to 75% on most deals and we will lend to 80% if the client has good credit and the deal is solid. 

4. What type of property will Reliable lend on? ~ We lend on residential and commercial property.  We lend on single family dwellings, townhouses, condos, cabins, co-ops, construction, serviced land, rentals, vacation property, remediated grow-ops & purchase of previous grow-ops, partial interest properties.  Take a look at "Lending On" under the "Mortgage Brokers Information" tab.

5. How do I send a deal to Reliable? ~ You can call us first to run the deal by us to get an idea of what we can do.  Then either email at newdeals@reliablemortgages.ca or fax (778-293-2511) us the information.

6. What information should I send Reliable? ~ We need to see an application, credit report and appraisal - it needs to be from our approved appraiser list (so don't order one if you don't already have it).  If it is a purchase, we want to see the purchase agreement.  A summary of the deal is helpful as well.  We do not require NOA's, job letters, income confirmation etc. 

7. What are Reliable's subjects/conditions on their commitment letter? ~ Generally, our only subjects are an appraisal (approved by us) & a lender inspection (where we go to the property and meet the clients in person).  In strata situations, we do need to see a Form B (the sooner it gets ordered the faster we can lend). Sometimes other items will need to be reviewed but we try to keep our conditions to a minimum.

8. What are Reliable's lending minimums and maximums? ~ We prefer to do loans over $50,000 but have done the odd smaller loan.  As for maximum size, $2,000,000 and sometimes we will go higher for the right deal.

9. What is Reliable's process? ~ From when we get your deal in, we review it, issue a commitment letter, once the commitment is signed and returned, we get a deposit, order appraisal, review appraisal, do lender inspection, review any final documents (like Form B), instruct our lawyers, client signs at lawyers, we fund mortgage and pay referring broker.  We can act very quickly to get the deal done.

10. How fast can Reliable fund? ~ We realize that many of your clients need money yesterday as their bank has turned them down at the last minute, another lender has cancelled the file etc.  Our record is funding within four hours of receiving the commitment!  Our regular time frame from receiving application to funding is done within about a week (a few days if appraisal is already done).  We act quickly and have our money ready to go so it is mostly up to appraisers, lawyers and the client as to how fast we can get it done!

11. Who funds Reliable's deals? ~ We have our own direct Mortgage Investment Corp. that funds all of our mortgages.  We do not outsource our fundings to other lenders.  We also do not have a Board we need approval from.  Our underwriters have the capability to approve your mortgage deals.  Isn't it convenient to deal with the decision maker - we think so.

12. How long are Reliable mortgage terms and are there any fees? Let’s answer the second question first: No. No renewal feeSo, what is Reliable’s renewal policy? All Reliable mortgages are fully open LOC, re-advanceable and with no prepayment penalties. We offer renewal to all borrowers in good standing. We have borrowers who have been with us for a decade and others who’ve mortgaged a series of properties over the years due to the flexibility of the mortgage product offered and the ability to payout or paydown at any time. It is more important than ever to read the fine print of any commitment letter you receive. We’ve heard from one broker of a recent example where the lender wanted a 3% (!) renewal fee at the end of the one-year term. For us at Reliable, that approach doesn’t make sense as a high renewal fee strains borrower-broker trust and severs the relationship between borrower and lender, likely irreparably. That’s why Reliable Mortgages takes the approach that we do. We’d rather deliver on our promise to you and focus on a long-term relationship with our broker partners and their clients.

13. How does Reliable determine its interest rates?  ~ As we are not bank lenders, our rates do not compare with mortgage rates that banks offer.  We base our pricing on the current market, the location of the property and condition, the credit of the client and the overall risk involved.  Contact us for pricing on a specific deal. 

14. How do mortgage brokers get paid? ~ We agree on the fee structure when we issue our commitment letter.  Once the deal has funded, our lawyers forward the fees to us and we pay you through your company.  Usually a day or two after funding. 

15. How do Reliable's "Lines of Credit" mortgages work? ~  We register the mortgage for say $500,000.  At initial funding, the client draws $200,000.  The client will only pay interest on $200,000 not the remainder, until it is drawn.  To receive more of the funds, the client just needs to contact us and we can usually send the next draw to them the same day.  We do not do draws for small amounts like $2,000 but we can do more than one advance as they need funds. 

We have tried to cover some of the questions that might come up but the list could be endless.  Please contact us with any other questions you might have, we are happy to take the time to explain our processes with you!