If you have more questions, contact us.
Magenta has three specific lending areas:
- Eastern Ontario –Magenta will lend up to 10kms outside the city limits of Ottawa, Kingston and Brockville.
- Southwestern Ontario – Magenta will lend up to 10kms outside the city limits of Kitchener, Waterloo, Cambridge, Guelph, Brantford, London and Woodstock. As well, Magenta will lend within the city limits of St Thomas.
- Quebec – Magenta will lend within the city limits of Gatineau.
Properties within 30 minutes of one of the Ontario urban areas listed above will be considered on an exception basis at a maximum LTV of 75% and with a rate surcharge.
Magenta’s maximum loan to value on any mortgage is 85%. This is for properties located within our urban centres listed above plus 10 km. Anything outside these areas are subject to LTV cutbacks. Magenta will accept a private 2nd mortgage behind us on qualifying deals.
Magenta offers first and second mortgages on owner-occupied residential properties, single family rentals, multi-unit residential properties, student rentals, modular home construction, and raw land. Please contact your business development manager for specific criteria for each different category.
- Properties with wood foundations
- Properties on a flood plain
- Properties on leased land
- Remote rural properties
- Properties outside the primary lending areas with a value of less then $150,000.00
- Mobile homes
- Remediated grow ops/meth labs
- Properties with holding tanks
- Properties on cisterns
- Properties with a shared well
- Farm land where there is income derived from it
- Properties where the sole source of heat is an outdoor furnace
- Log Homes
- Properties with any gas tanks or fuel storage
- Properties that show an apparent lack of “pride of ownership”
Clients are welcome to use their own solicitor. Magenta reserves the right to request their own counsel to act on their behalf.
Magenta created a list of preferred appraisers based on those whose work we have come to know and trust. Appraisals are always ordered directly by the broker. Our list of preferred appraisers is available on our website under broker tools.
All appraisers require AACI or CRA accreditation. If you already have an appraisal from an office that is not on our preferred list done for another lender, please contact your business development manager to see if we will accept an assignment of that appraisal.
Magenta’s process is simple. Once you have confirmed that your deal is a fit for Magenta you can submit to us through Filogix, Morweb or directly via emailing a PDF application. We are found under “lenders”, not privates.
Once you have submitted your deal to Magenta you will receive a notification from our Underwriting Department indicating turnaround times and requesting any additional documentation you may have upfront. Underwriting times vary according to volume. Typically we are at about a 24 hour turnaround time.
Once an underwriter has adjudicated your deal you will receive notification from the platform that you have submitted on as well as from the underwriter directly. Magenta is committed to keeping the broker informed every step of the way. You are encouraged to contact your underwriter or business development manager at any point in the process if you have any questions.
The underwriter will typically return a commitment with a closed term. Both 1 and 2 year terms are available. If you require an open term it should be requested.
A closed term does not mean that the file is closed until maturity or a bona fide sale; rather it means that paying out early will be subject to a 3 month interest penalty or IRD – whichever is greater.
Each mortgage also has the option on a closed term to increase their monthly payments by 20% with 15 days written notice.
An open term means that there will be no prepayment penalty to pay off the mortgage prior to maturity. We will require 30 days written notice of payout.
Magenta mortgages are not typically portable or assumable. In special circumstances we will allow an assumption to be processed but we do not release the original covenant.
Since Magenta is a property lender our mortgages are not portable. Each mortgage is based on each specific property.
Magenta collects fees on each mortgage no differently than a traditional bank collects insurance premiums. Magenta is not insured by CMHC, Genworth or Canada Guarantee and as such takes all the risk. We also collect fees to facilitate the broker compensation. Magenta capitalizes their fees on all files. Fees typically range from 1% – 2.5% depending on the nature of the transaction.
Magenta does offer construction financing on multiple projects. We are well versed in independent self builds, spec builds and turnkey Tarion contract builds. Each build is unique and we offer the opportunity for the builder/borrower and the broker to join us in the office to help lay out the foundation of the project. All rates and loan to value are subject to location and overall risk of the project. Contact your business development manager for specific criteria.