Elevate Masterclass

Elevate Conventional | Everything you need to know

Here’s a quick guide to everything you need to stay informed and up-to-date, as well as some FAQs that popped up in our Q&A Session. Stay tuned for more on 2025 events coming soon…

📺 Webcast Recording

Missed the session or want to revisit the key points? Access the webcast recording here.

📦 Product Summary

Access here  – a quick recap of the key product details we discussed.

❓ FAQs

PRODUCT SUMMARY

Purpose

• Purchase 
• Refinance 
• Transfer/Switch 

Ineligible

• Purchase/Refinance Plus Improvements 
• Collateral Transfers/Switches 

Terms ​ 

• 5-year Fixed​ 
• 5-year ARM​ 

Maximum​ 

• LTV: 80%​ 
• Amortization: 30 years​ 
• Loan Amount: $1,500,000 

Credit​ 

• Primary Applicant: ≥ 680​ 
• Secondary Applicants: ≥ 640​ 
• No prior bankruptcy, consumer proposal, or credit counselling 

Debt Servicing ​ 

• GDS 39​ 
• TDS 44 

Income​ 

• Verifiable​ 
• Business for Self – traditional income documentation only 

Appraisals​ 

• AVM where eligible; appraisals in all other cases through NAS, Value Connect, RPS, or Solidifi 

Payment Frequency​ 

• Weekly​; Accelerated Weekly​ 
• Bi-weekly; Accelerated Bi-weekly​ 
• Semi-monthly​ 
• Monthly 

Lending Areas​ 

Major/medium urban centers in​: 

• Alberta​ 
• British Columbia​ 
• Manitoba​ 
• New Brunswick​ 
• Newfoundland​ 
• Nova Scotia​ 
• Ontario​ 
• Prince Edward Island​ 
• Saskatchewan​ 

Ask your BDM or BRM regarding specific locations 

Property Eligibility

• Owner-Occupied, Primary Residence (includes Owner-Occupied Rental) 
• 1-4 Unit Residential​ 

Ineligible 

• Rental  
• Second Home​ 
• Recreational/Vacation​ 
• Leased Land​ 
• Commercial Content​ 
• Laneway, Mobile or Modular properties 

SPRINT/SUPER SPRINT

• Not available  

Product Features

What prepayment options are available?

• One or more lump sum payments each calendar year up to a total of 20% of the original mortgage amount. Client may also increase monthly principal and interest payment amount by 20% per calendar year.

Can adjustable-rate mortgages (ARM) be switched to fixed? Is there a penalty if a client wants to switch from an ARM to a fixed rate during the term?

• Provided the mortgage is not in default, client may at any time without penalty convert the adjustable-rate mortgage to a fixed rate mortgage. The term and rate would be determined at that time.

Property Eligibility

Do you consider rural properties or farmland?

• Provided there are no active farming activities/operations, these may be considered depending on location, loan-to-value (LTV), and deal specifics.

Income and Qualification Criteria

How is income confirmed and calculated for Business for Self (BFS) clients?

• All income must be verifiable for BFS clients with two years Notice of Assessments (NOAs) along with minimum two years business tenure confirmation, and, if requested, T1 Generals/Financial Statements.
• Income will be calculated based on average of line 15000 or ‘Net self-employment income’ for sole proprietorships/partnerships or lines 10100/12000 for corporations as applicable.  
• Please note that in cases where the income is uneven for the two years and decreasing, MCAN may use the lower of the two years for debt servicing and/or request explanation for the decrease. 

Is the gross-up for Business for Self (BFS) clients based on percentage or add-backs, and how is it determined for sole proprietorships/partnerships and corporations?

• The gross-up for BFS clients is based on percentage. Gross-up is up to 20% for ALL BFS clients provided the resulting income is reasonable based on the income documents.

How is rental income treated for owner-occupied properties with rental units? Do(es) the additional unit(s) have to be legal?  What percentage of rental income is considered and how is it treated?

• The additional unit(s) do(es) not have to be legal; however, the appraisal must confirm that each unit is self-contained – i.e. has a separate entrance, kitchen, full bathroom, and living space.
• 100% of rental income can be added to qualifying income provided it does not exceed 50% of the total income on the file (including said rental income). 
• Noting that principal and interest payments, property tax, heat, and 50% of HOA/strata fees are accounted for as per usual process for owner-occupied properties. 

How is rental income treated for non-subject properties?

• If there is a combined rental deficit, it is added to liabilities. If there is a combined rental surplus, it is ignored. The Debt Service Ratio will also be considered and may result in documentation being required to confirm client’s net worth.

What is the calculation for Rental Surplus/Deficit? 

• 100% rental income + Other income from property (e.g. parking fee, laundry, etc.) – Vacancy (4% – 6% based on location) – Mortgage payments – HELOC payments – Property taxes  – 100% condo/HOA/strata fees – Insurance  – Repairs/maintenance costs  – Utilities (unless confirmed paid by tenant) – Other property related expenses (e.g. management fees)  = Rental Surplus/Deficit 

 Is there flexibility on the GDS/TDS ratios? Are the 39%/44% GDS/TDS ratios a hard stop, or can exceptions be made?

• For TDS ratios, we can typically accommodate up to 45%, but anything higher or GDS higher than 39% requires an exceptionally strong deal. The key with this product is a clean, well-structured file with strong covenants and a solid property. If you can present a compelling case with a robust application, we’re open to discussing it.

Transfers and Incentives

Are there incentives for switching?

• The program covers FCT fees and AVM/appraisal costs.
• Accrued interest, transfer/administration fees, and pre-payment penalties can be capped to the loan amount at 2% of the existing mortgage principal balance up to a maximum of $3000. Anything over and above this will be the responsibility of the client.

Do you support transfers from other lenders?

• Yes. Other standard charge prime conventional uninsurable/uninsured mortgages can be transferred to MCAN. Uninsured B-side mortgages would be treated as refinances.

Graduation Program

Is there a graduation program from Alt MCAN/B-side to Elevate?

• Yes, there is a program to graduate from MCAN’s Alt programs to Elevate, and brokers are compensated for facilitating this transition.

How early should brokers start the graduation process?

• Brokers should begin the process at least 90 days prior to maturity.

Valuation and Appraisals

When is the AVM confirmed?

• The AVM is confirmed at the time of underwriting – i.e. before a commitment is issued.

What is the cost of an AVM?

• The cost for this service is $350.00.

In cases where an appraisal is required, is the appraisal cost covered?

• No, appraisal costs for purchases and refinances will be the responsibility of the client.

Do you lend on appraised value for new construction?

• Lending is based on the lower of the appraised value or purchase price.

Debt and Tax Considerations

How do you handle CRA debt payouts?

• Payout of CRA arrears from previous tax years can be considered but the circumstances would need to be reviewed.

Process

Will Elevate forward files to the Alt MCAN/B-side?

• Yes. If the deal does not fit under Elevate, the Underwriter will reach out to the broker to confirm if they would like the file to be considered on the Alt MCAN/B-side, and if the answer is yes, the transfer will be handled internally without the need for the broker to resubmit the file.