OverviewJoin our extensive, trusted network
At Magenta, we offer your clients access to a decision maker who possesses a detailed understanding of the real estate markets we lend in. We have established relationships with local appraisers and real estate professionals, and we carefully review economic drivers in your community.
Because we truly understand our markets, we are able to make informed, intelligent lending decisions to help your clients navigate a clear path through tough situations like divorce, estate settlements, CRA or HST issues, pre-bankruptcy refinances, and more. We customize every loan approval to make sure it meets the needs of the borrowers as precisely as possible.
We are specialists in the alternative, non-conforming lending space. As such you can be sure that your files will be handled with a high level of professionalism, integrity, and competence.
We look forward to assisting you with your next client file. Contact us at email@example.com.
What we offer
- First and second open and closed mortgages on residential, construction, investment, land and seasonal properties.
- We offer timely fundings- On emergency basis fundings can be made within hours of receipt of a full application and appraisal.
- We offer flexibility of pure private or equity lending with institutional-style operations and post-closing administration.
- We are on Filogix and Morweb for convenient deal submission and commitments.
- Pricing is set and predictable, based on an industry-leading rate and fee matrix.
- We fund mortgages for consolidation and also to provide funds to discharge a bankruptcy or consumer proposal.
- We direct the solicitor to disburse funds to creditors in order of priority so you have a complete record and funds summary.
- We have no minimum beacon score requirement so even borrowers with low scores and beacon rejects can access equity.
- We set payment frequency to match the borrowers’ payroll dates for better cash flow.
- We will allow the existing first mortgage to remain in place, which eliminates prepayment penalties and frees up more equity for consolidation.
- We can set a custom term so the borrower can refinance at A rates as soon as possible.
- All liens, judgments and executions must be paid from or prior to the advance, including CRA, or they must be postponed.
Submission ProcessHow it works
Broker and Regional Manager discuss deal
Brokers discuss their deals with a Magenta Regional Manager to determine if it aligns with lending parameters.
Broker submits using the platform of their choice (Filogix, Morweb or Velocity)
Brokers now communicate with the assigned underwriter on structuring the deal, issuing the commitment, confirming the available documentation and understanding the exit strategy.
Funding team ensures the documents meet the requirements of the commitment.
File completed through solicitor
The file is then completed by the solicitor chosen by the client.
Service is the cornerstone of our organization
With more than 23 years’ experience in mortgage origination, we understand what service means to our Broker partners. We enable brokers to deliver the high level of service that their clients expect. It’s our differentiator. We work with our broker partners to deliver a solution that truly helps the borrower. With a straightforward submission process and 24-hour turnaround on most file decisioning, brokers can readily educate and guide clients through the borrowing process. Simple. Fast. Done.™
Brokers are our partners
Success for our broker partners is synonymous with our success. It’s critical to have a lending partner who truly understands its markets and utilizes a common-sense approach to mortgage origination. We partner with brokers as educators and supporters to help grow their business. It’s why we enjoy such a fantastic reputation in the industry.
We have an extensive, trusted network that covers every facet of the business
Since 1994 we have nurtured an extensive network of partners covering every facet of the borrowing process. These preferred Magenta partners have proven track records, are highly knowledgeable and deliver top-level service.
We specialize in mortgage solutions for borrowers with short term credit challenges
Magenta provides flexible mortgage solutions that are tailored to suit our clients’ needs. Our primary focus is partnering with brokers to solve borrower’s short-term credit challenges and facilitate their return to the traditional lending channel.
Broker MapsSee where we lend
To search for a specific address to see if it falls within the city limits or surrounding area, select the from the drop-down menu – this will take you to our Google Maps page.
- Inside the green line:
Max 85% LTV on residential.
Small commercial to 75% LTV, max $750K.
Single family rentals at first mortgage rates.
- Inside the yellow line:
Max 85% LTV on residential.
Commercial, single family rentals exception only and at second mortgage rates.
- Inside the red line:
Max 75% LTV on residential.
Commercial, single family rentals exception only and at second mortgage rates.
Disclaimer: the areas represented in these maps are approximations only.
* To search, click the Search Icon in the legend and enter the desired address.
Investor Referral ProgramMaking better tomorrows
You’ve seen your initial investment grow with Magenta and the opportunities that has afforded you; why not share your knowledge with friends and colleagues while bolstering your portfolio?
Magenta offers an investment referral program for referring a prospective investor. This is a great way to strengthen relationships in your personal and professional networks while diversifying your revenue streams.
FAQFrequently Asked Questions
Who can I speak with to get more information?
For more information about our lending areas, products or pricing, please contact your business development manager. You can email them at firstname.lastname@example.org .
Where does Magenta Lend?
Magenta has three specific lending areas:
- Eastern Ontario –Magenta will lend in Ottawa (+25km), Kingston (+25km) and Brockville (+10km)
- 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.
What is Magenta's maximum loan to value on a first and second mortgage?
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.
What type of real estate will Magenta lend on?
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.
What type of real estate will Magenta not lend on?
- 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”
Why does Magenta have a preferred solicitor list?
Clients are welcome to use their own solicitor. Magenta reserves the right to request their own counsel to act on their behalf.
Does Magenta have an approved appraisers list?
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.
How do I submit a deal to Magenta?
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.
Magenta has offered a closed term; does this mean I cannot pay out my mortgage prior to maturity?
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.
Is my Magenta mortgage assumable and portable?
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.
Why does Magenta collect a fee?
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.
Does Magenta offer construction financing?
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.
April 11, 2018
By Michael Thibault | Brokers
Tips for Mortgage Brokers When dealing with credit challenges, it is advantageous to address your client’s financial goals beyond their […]