On October 16, we held the MCAN Home Welcome Broker Onboarding Webcast! 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…
Remember, you can always access Broker Resources here.
📺 Webcast Recording
Missed the session, part of it or want to revisit the key points? Access the webcast recording here.
📊 Deal Run
There’s an MCAN deal on your desk! Unsure? Connect with the deal run team to discuss policy, lending areas and property questions ahead of submission. Your approval ratio is about 85% when you use the deal run team AND we’ll add 5 bps to your comp!
Reach out to: DealRun@MCANfinancial.com
Frequently Asked Questions
What is the maximum number of renters?
- MCAN allows up to four rental properties in addition to the primary residence.
- For border income (renting rooms in an owner-occupied home), up to two borders are allowed, with a maximum of $750/month per border. Boarder income permitted on refinances only.
What about no score? Do you use both Equifax & TransUnion?
- MCAN uses both Equifax and TransUnion.
- If there’s no score on Equifax but a score on TransUnion, they can use TransUnion.
- If the primary borrower does not have a beacon, we can only consider this type of deal in our non-conforming bucket, i.e., 65% LTV max and no seconds allowed behind per B20 government guidelines. Current starting rate for this type of a scenario is around ~6.59% with 1% fee and max 30 year AM.
For clients converting their owner-occupied to rental, can you use future lease agreements, or do you need market rents to qualify (on Alt side)?
- If the property has been converted to a rental for a minimum of 3 months, i.e., tenants have resided in it for 3 months we will accept lease agreements, otherwise, we will require market rents.
For clients who don’t own their principal residence or wish to convert it to rental, how much of shelter cost is accounted for? What is needed for rental income qualification?
- MCAN typically uses a $1,000 shelter cost.
- For rental income qualification:
- Subject owner-occupied rental: 95% add-back.
- Subject rental (purchase/refi): 90% add-back.
- Non-subject rental: 90% offset.
- Holding companies are allowed for rental-only properties.
Is a rental property defined by a door or a mortgage?
- MCAN defines rental properties by property, not just doors.
- MCAN prefers a maximum of four doors per property. Exceptions can be consider to the number of doors per property for non-subjects.
- More than four propertie or heavy reliance on rental income may fall outside their risk appetite.
Would you consider clients with a missed mortgage payment or two within the last year due to a life event?
- Yes, MCAN can consider such clients.
- MCAN looks for a reasonable story behind the missed payments and supporting documentation. Pricing may be different and LTV may be reduced.
Will you do a second mortgage on the Alt side?
- MCAN only offers second mortgages behind our own first mortgages.
- MCAN does not offer second mortgages behind other lenders.
Do you have a high net worth (HNW) program? Minimum net worth to go to 80% LTV? Can HNW be used for rental refi?
- MCAN does not have a formal HNW program.
- However, we may consider amortizing investment assets (e.g., $1M over 25 years) to simulate income-depending on the ratios we may be able to contemplate a ratio exception or this can be considered in our non-conforming bucket, i.e., 65% LTV maximum
How about projected income for professionals (A and B side)? If client is buying second property as owner-occupied?
- MCAN does not use projected income.
- MCAN may consider:
- Employment letters stating guaranteed income.
- For realtors, 2-year commission statement average with YTD pipeline tracking for the 2 year average being used.
- For professionals, e.g., lawyer/doctor/accountant, we can use our business bank statement program, if they’re new, we can use a minimum of 6 months tenure.
What income is considered for retired clients?
- MCAN considers:
- Pensions
- CPP and OAS
- Investments with tax forms to determine the 2-year average.
- Annuities
- They assess all sources to ensure income stability.
Any restrictions on A or B space for clients in tariff-hit industries?
- Yes, MCAN applies additional due diligence for clients in tariff-affected sectors (e.g., auto industry).
- Risk factors are assessed case-by-case, especially if multiple risk factors are present.
Will you consider foreign income?
- Yes, only if the foreign income is claimed in Canada.
- Income earned and claimed abroad (e.g., in the U.S.) is not acceptable.
What is your process for out-of-province/country signing on close?
- MCAN allows DocuSign for remote signing, as long as their lawyer is ok with that.
- No need for in-person presence.
On tariff-hit industries: where are restrictions tighter—lower LTVs with higher ratios or higher LTVs with lower ratios?
- It depends on the stacked risk factors.
- MCAN assesses each deal individually to determine acceptable LTV and ratios.
Can you confirm your porting policy? Is it port and blend to end of existing term or to a new term?
- MCAN offers:
- Port and blend to end of existing term
- Port and blend to a new term (e.g., 3 or 5 years)
- Depends on the client’s mortgage timeline.
- No porting is offered on the B side.
Do you have a limit on AVM value for conventionals?
- Yes, AVM must have sufficient data to generate value.
- High-value or new builds may require full appraisals.
- AVM may not work well for properties over $1.5M.
For your graduating program, what rate is offered to clients moving up to the A side—insurable or uninsurable?
- Clients moving from B to A are re-underwritten.
- They are placed in the conventional A bucket and receive competitive rates.
- The process is not automatic.
Can you lock in a variable during the term into a fixed?
- Yes, clients can lock in a variable rate into a fixed rate at any time, without penalty.
Score Program
Client support for Credit Optimization, Rehabilitation and Education. Program details here.
