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MCAP Fusion Mortgage

MCAP Fusion Mortgage is a mortgage and a line of credit…a powerful combination with flexible financing options to meet YOUR home financing needs.  

MCAP Fusion Molecules and abstract patterns

Discover the POWER of potential.

The more you pay down on your mortgage, the more your line of credit grows. You have the power to use it if you want, for what you want, when you want. Think of the potential!

MCAP Fusion Mortgage is ideal for savvy homebuyers, self-employed individuals and those with an eye on the future.

Product Features:

  • Choose between a fixed or variable rate amortizing mortgage to combine with a line of credit
  • Automatically increase your line of credit with each principal payment or lump sum payment on the amortizing mortgage
  • Leverage your home equity when you need it without having to refinance or re-qualify
  • Save money — no need to pay refinance fees
  • Pay off the line of credit at any time without penalty*

MCAP Fusion Mortgage delivers even more!

  • A choice of amortization periods as short as five years
  • Payment frequency tailored to your lifestyle including accelerated payments to pay down your mortgage faster
  • Annual prepayment privileges up to 20% of the original principal amount and/or increase your regular payment by up to 20%
MCAP Fusion Mortgage Details
Purpose
Purchase, Ports, Replacements,
Refinance (No Pre-approvals, No Assumptions, No Transfers)
Blended rate options not available
Number of Segments in the product
2 Segment Product — a LOC with redraw capability
combined with one standard fixed or variable segment
Primary SegmentThe Line of Credit
Secondary Segment5 Year Fixed or VIP M-Power product (Amortizing Segment) 
ProgramsStandard, Secondary Home 
Property Type
  • Owner Occupied
  • Partially Owner Occupied
  • Maximum of 4 units
  • The minimum living space of the subject property is:
    • 850 square feet if it is a single family dwelling
    • 500 square feet if it is a condo
  • Rural properties on exceptions basis only
Term
LOC Segment — 25 Years
Amortizing Segment — 5 Years
Interest Compounding FrequencyLOC Segment- monthly
Amortizing Segment- semi-annually
Loan Amount
  • Minimum Combined Loan Amount $50,000
  • Minimum LOC Amount $1
  • Maximum Combined Loan Amount $950,000
  • Second Homes - Maximum Combined Loan Amount:
    • $600,000
    • $750,000 in Vancouver, Calgary, Toronto
Charge Type / RegistrationBoth segments combined as a 1st charge, but registered as a Collateral Mortgage (registered for 100% of the appraised value)
Linked Limits
  • As the mortgage balance pays down, the LOC credit limit automatically increases.
  • The maximum LOC credit limit cannot exceed 65% LTV at any time.
Maximum Loan-to-Value (LTV)
  • Line of Credit Maximum — 65%
  • Total Lending Maximum LTV — 80% (including all segments)
Down Payment
  • Funds from own resources only
  • No gifted down payment
Interest Only Period
  • LOC Segment — 25 Years
  • Amortizing Segment — n/a
Amortization
  • LOC Segment — 25 years
  • Amortizing Segment — 5-25 years
Payment Options
Will be drawn as 2 separate PAD payments from borrowers account:
  • LOC Segment — monthly
  • Amortizing Segment — weekly, bi-weekly, semi-monthly, monthly
Pre-Payment Options
  • LOC Segment — Fully open
  • Amortizing Segment — 20/20
Property Taxes
  • Property taxes are collected with the LOC segment of the loan in combination with the monthly interest only payments, if applicable.
  • You have the option to pay your own property taxes through the municipality.
Early Payout
  • LOC Segment — Fully open; no penalty
  • Amortizing Segment (fixed) — Up to 5th anniversary, greater of 3 months interest or IRD
  • Amortizing Segment (variable) — 3 months interest (at prevailing interest rate or MCAP Prime, whichever is greater)
  • Reinvestment fee applies to amortizing segment
  • Full early payout penalties apply if increasing either amortization or LOC segment of the loan
Conversion
  • LOC Segment — no conversion
  • Amortizing Segment - can convert to a 5 Year Fixed product at any time without penalty from the VIP M-Power product. If remaining term (amortization) of the LOC segment is less than 5 years a new registration will be required.
Access to Funds
  • Can access some or all of your credit by requesting funds through your lawyer at time of closing
  • Can also access funds throughout the term by going online, or by contacting MCAP’s Servicing Centre to transfer funds to the designated bank account.
Borrower Qualification
  • Minimum Beacon Score of 650 for all applicants
  • GDS/TDS 39%/44%
  • If TDS is at capacity, a revolving credit card or LOC account may be requested to be fully paid out and closed
  • No bankruptcy or judgments
  • No major derogatory credit
Business-for-self Applicants
  • Add-backs are not eligible for qualifying income
  • Gross-up for Limited or Incorporated companies are not eligible for qualifying income
  • Gross-up for Sole Proprietorship or Partnership ARE eligible for qualifying income
Qualifying Rate
The combined loan amount will be qualified at the greater of:
  • The HELOC contract rate + 2% or
  • The Bank of Canada 5 year Benchmark rate
GuarantorQualifying Guarantors must occupy the subject property
* Full early payout penalties apply if increasing either amortization or LOC segment of the loan.
Please note: Subject to change without notice.

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