Mortgage, Money and Dream – Our thoughts on Canadian Mortgage Market
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A couple of weeks ago I had a meeting with Helen to better understand the products offered by Equitable Trust and their guidelines. I was surprised by the number of products they offer and how client oriented the models are.

Understanding its client base is an essential tool for a successful business. Equitable Trust has mastered that part well. A very focused and friendly lender who often extends its help when we need it.

About Equitable Trust:

Equitable Trust is a federally incorporated financial institution offering insured deposits. It serves the investing public as a provider of Guaranteed Investment Certificates (GICs), being licensed to issue GICs across Canada. Equitable Trust also serves single family, small and large commercial borrowers, and their mortgage advisors

In broker channel the institution is very well known and popular for many reasons.

Its Single family customers include business-for-self Canadians, newcomers, and investors who have the financial resources to achieve real estate ownership but do not meet the traditional credit criteria of the major banks.

It is one of the few non – traditional lenders in the market with a national reach (except few places).

Public Company:

It is a public company traded on the Toronto Stock Exchange under the symbols ETC and ETC.PR.A respectively and its stock price today is around $31 which is up significantly from 2009, March low of $9.2

In its last financial report the company reported a 40% increase in net income in Q2 and its Single Family Lending origination jumped up by 65% in Q2 from a year ago.

Lower Number of Defaulters:

The most interesting point was the lower number of defaults. Mortgages – 90 days or more in arrears was 0.22% of total mortgage principal, a drop of 0.05% from a year ago. Number of net impaired mortgages also improved compared to last year.

Mortgage Product Highlights:

Equitable Trust offers many interesting mortgage products. The most salient features are;

  • It offers Adjustable Rate Mortgage Option.
  • Currently 30 year amortization available.
  • 100% Rental offset consideration compared to typical 50%.
  • Fixed mortgages are not closed (after June 2011). Any mortgages can be discharged by paying penalty.
  • A borrower is allowed to arrange private second mortgage behind its charge, up to 90% Loan to value.
  • Mortgage financing for Business For Self.
  • Rates:

    Equitable Trust interest rates are generally competitive among alternative lender and slightly higher than “A” lenders.

    Helen presented a very nice calculation stating why even after paying with higher interest rate – a borrower can still achieve a reasonable rate by not paying the default insurance premium.

    It is again a proof why you should always talk to a professional.


    Brokers, if you want to find out more, then you can contact Equitable Trust directly to talk to your RBM.