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What is the maximum amount available under the H.E.L.P. Home Equity Loan Program?
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The H.E.L.P. Home Equity Loan Program now mandates funding up to a maximum of $100,000.00.
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Does the homeowner pay a fee premium under the H.E.L.P. Program?
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Yes, the H.E.L.P. premium is $59.75 for each $5,000.00. The homeowner can only obtain access to the H.E.L.P. Program by applying through a licenced Mortgage Broker or Mortgage Agent. Please review the full details of this program with your clients as shown on the Home Page.
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Can the homeowner use their own lawyer?
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Yes. We use the homeowner's lawyer on mortgaging up to $75,000.00. If the mortgage amount exceeds $75,000.00 the Law Society of Ontario will then require a separate lawyer to act on behalf of the lenders.
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If required, can the borrower also obtain a 3rd. mortgage under the H.E.L.P. Program?
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Perhaps, but only on an exception basis. While this program was designed initially for 2nd. mortgages, the borrower may be able to obtain a 3rd. mortgage contingent upon committee approval.
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How does the H.E.L.P. Program protect the homeowner?
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The H.E.L.P. Home Equity Loan Program is an industry program that was formulated predominately for investing individual retirement savings into the mortgage market. It is the investors who advance the funds, but the maximum rate of interest is mandated under the H.E.L.P. Program. In addition to the above, the H.E.L.P. Program also mandates that any initial renewal offered by the lenders cannot exceed the greater of the initial rate at time of advance or to a maximum of 1.99% above the posted then or now Royal Bank of Canada 1yr. open fixed 1st. mortgage residential rate. Any renewal fee cannot exceed the H.E.L.P. Program's $690. maximum limit.