2019 BROKER KIT - Merix Financial
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2019 BROKER KIT
Subject to Change at any time without notice
©MERIX Financial 2019Table of Contents About MERIX Financial ......................................................................................................................................................................... 1 MERIX vs. Lendwise .......................................................................................................................................................................... 1 Who is NPX? ..................................................................................................................................................................................... 1 MERIX Corporate Partners ................................................................................................................................................................... 2 Paradigm Quest ................................................................................................................................................................................ 2 Computershare Trust Company of Canada ...................................................................................................................................... 2 First Canadian Title ........................................................................................................................................................................... 2 Mortgage Insurance ......................................................................................................................................................................... 2 Doing Business with MERIX and Lendwise ........................................................................................................................................... 3 MERIX and Lendwise Key Contacts ...................................................................................................................................................... 4 Compensation and Rewards ................................................................................................................................................................ 5 MERIX Compensation ...................................................................................................................................................................... 5 Lendwise Compensation .................................................................................................................................................................. 5 XRewards .......................................................................................................................................................................................... 5 basisPOINTS ...................................................................................................................................................................................... 6 Status Program ................................................................................................................................................................................. 6 Products and Policies ........................................................................................................................................................................... 7 Underwriting Matrix and General Guidelines .................................................................................................................................... 10 E-Signature Policy ............................................................................................................................................................................... 13 Income Confirmation Overview ......................................................................................................................................................... 14 Down Payment Confirmation Overview ............................................................................................................................................. 16 Closing the deal: Customer Options .................................................................................................................................................. 17 Assumptions ................................................................................................................................................................................... 17 Conversions (ARM rate or Fixed Rate) ........................................................................................................................................... 17 Covenant Changes .......................................................................................................................................................................... 17 Deferring a Mortgage Payment ...................................................................................................................................................... 17 Mortgage Penalties ........................................................................................................................................................................ 18 Payment Frequencies ..................................................................................................................................................................... 18 Pre-Payment Privileges................................................................................................................................................................... 18 Renewals ........................................................................................................................................................................................ 19 Taxes............................................................................................................................................................................................... 19 Title ................................................................................................................................................................................................. 19 Title Insurance ................................................................................................................................................................................ 19 Welcome Letters ............................................................................................................................................................................ 19
About MERIX Financial
MERIX Financial operates 3 distinct industry-leading options: MERIX Financial, Lendwise, and
NPX. Since founding in 2005, MERIX Financial has provided residential mortgages to over 200,000
Canadians from coast-to-coast.
With over 29 billion dollars in funded mortgages, MERIX Financial focuses helping Canadians from
all walks of life realize the dream of homeownership. We invest in unparalleled customer service
and innovative technology and resources to ensure we provide customers with an unforgettable
home-buying experience.
The Originators we partner with are committed to delivering the highest level of service standards.
In return, MERIX provides them with tools to succeed and a host of innovative products, lending
programs, compensation, and reward plans.
I thought there was a need in the market place for creating future wealth for
originators; no other lender is focused on that. The market place can always use a
lender, a resource, a supplier, who is innovative and is looking to do things a little bit
differently; a lender who is always growing and changing with the times.”
- Boris Bozic, Founder & CEO of MERIX Financial
MERIX vs. Lendwise
The difference between MERIX and Lendwise is compensation - MERIX pays you trailer fees for
the life of the mortgage while Lendwise will pay you upfront compensation. As an Approved
Originator, you have access to both brands at any time. See the compensation section for
details.
Who is NPX?
NPX is an innovative, solution-based, full-suite alternative product offered in the Province of
Ontario. An avenue that meets the needs of those who are self-employed, those with non-
traditional incomes or with a blemish on their credit score; the NPX product focuses on borrowers
that need more considered than just credit. For more information on NPX, see the NPX Ontario
Broker Kit.
1MERIX Corporate Partners
Paradigm Quest
MERIX works in partnership with Paradigm Quest Inc. (Paradigm) to provide affordable mortgage
financing to Canadian consumers. Paradigm, an experienced and growing mortgage servicing
company, is responsible for underwriting the mortgage and servicing of MERIX and Lendwise
mortgages. Rated by Standard and Poor’s, a global provider of financial market intelligence, credit
ratings and risk evaluation, Paradigm arranges the funding of MERIX and Lendwise mortgages
through a number of capital market institutional investors. Paradigm has offices in Vancouver,
Toronto and Montreal.
Computershare Trust Company of Canada
Computershare Trust Company of Canada (Computershare) is the largest corporate trust service
provider in Canada. To ensure MERIX and Lendwise mortgages meet CMHC requirements,
Computershare acts as a custodian of the securities. They are required to register MERIX and
Lendwise mortgages in the name of “Computershare Trust Company of Canada.” The mortgage is
registered in the name of “Computershare Trust Company of Canada,” and customers will see this
name on some of their mortgage documents. Please be assured that MERIX remains the point of
contact for any customer service inquiries after mortgages have been funded.
First Canadian Title
MERIX has selected First Canadian Title (FCT) an organization which specializes in facilitating
mortgage transaction including: providing title insurance, document processing and third-party
funding for financial institutions. MERIX and Lendwise use FCT to contact the appropriate solicitor
and send instructions to close each mortgage. This process centralizes all aspects of the legal
portion of the mortgage and results in greater efficiencies and increased ease of communication.
Mortgage Insurance
MERIX works with Genworth Canada, CMHC, and Canada Guaranty
2Doing Business with MERIX and Lendwise
MERIX and Lendwise Support Centres
MERIX and Lendwise Head Office 56 Temperance Street, Suite 400
Toronto, ON M5H 3V5
T: 1-888-637-4920
MERIX and Lendwise Approval Centre T: 1-877-MERIX-11 (1-877-637-4911)
8 am to 8 pm ET, Monday – Friday
Online Broker Portal:
https://merixfinancial.brokerstatus.com
➢ Quebec Underwriting Centre 2001, boul. Robert-Bourassa, Suite 830
Montreal, QC H3A 2A6
➢ Toronto Underwriting Centre 390 Bay Street, Suite 1800
Toronto, ON M5H 2Y2
➢ Vancouver Underwriting Centre 1285 West Pender Street, Suite 520
Vancouver, BC V6E 4B1
MERIX and Lendwise Customer Service T: 1-877-MERIX-14 (1-877-637-4914)
8 am to 8 pm ET, Monday - Friday
customerservice@merixfinancial.com
Online Customer Portal:
https://merix.mymortgagedetails.com
For Insurance Binders Computershare Trust Co. c/o Paradigm Quest Inc
390 Bay Street, Suite 1800
Toronto, ON M5H 2Y2
3MERIX and Lendwise Key Contacts
•Provide expertise on compensation, products, and
programs
Director, Business Development
•Review potential deal scenarios
•Dedicated resource for business support
•Provide expertise on compensation, products, and
programs
Personal Account Manager •Review potential deal scenarios
•Discuss and adjudicate deals
•Discuss and review required file documents
•Review potential deal scenarios
Underwriter •Discuss and adjudicate deals
•Review exception requests
Credit Administrator •Discuss and review required file documents
•View your current files
•Upload required file documents
•Access product and program information, forms, and
Broker Portal
current interest rates
•Create sub-agent access
https://merixfinancial.com.brokerstatus.com
Xreward Enquiries
xrewards@merixfinancial.com
Appraisal Reimbursements
(Status & Switches) status@merixfinancial.com
1-877-MERIX-14 (1-877-637-4914)
Customer Service
customerservice@merixfinancial.com
https://merix.mymortgagedetails.com
Retention Department
retention@paradigmquest.com
Collections Department
collections@paradigmquest.com
4Compensation and Rewards
MERIX Compensation
For originators who want to build a book of business that has ongoing value, our Trailer Fee
models allow you to:
• Create a long-term revenue stream
• Get paid on assets under administration, not just transactions
• Benefit from our relationship with the client
• Create an exit strategy from this business
*To see the current MERIX compensation structure click here.
Lendwise Compensation
For originators who prefer to maximize their upfront compensation:
• Compensation for each tier level will advance as funded deals thresholds are achieved;
MERIX and NPX deals are not included in this volume
• Monthly Efficiency Bonuses will be paid to originators that achieve or surpass an ongoing
50% Application-to-Fund (ATF) Ratio
• Additional bonuses are earned on insured/insurable deals
• Please note – renewal and trailer fees are not paid on Lendwise deals
*To see the current Lendwise compensation structure click here.
XRewards
As part of the MERIX Compensation Program, originators may elect to be paid trailers and
renewals fees in the form of XReward Credits:
• XRewards allow originators to build up their pool of reward credits with a cash value
• XReward credits are part of the broker’s compensation and they can be redeemed for cash
outs, file related expenses, and industry events.
• Your XRewards balance can be seen in your eXplore Broker Portal or by emailing
xrewards@merixfinancial.com.
*For more information on XRewards, click here.
5basisPOINTS
MERIX is proud to offer a basisPOINTS Program where Originators earn points on every deal
funded with MERIX and Lendwise. basisPOINTS are discretionary pricing credits which allow you
to buy down rates on future deals.
• basisPOINTS can be redeemed at your discretion to price new business
• You must have an Application-to-Fund ratio (ATF) of 50% of greater to use your
basisPOINTS
• The Program is FREE and open to all originators
• You will receive 1000 basisPOINTS per deal funded at MERIX or Lendwise. 1000
basisPOINTS is the equivalent of $90 in buydown power
*To see the current basisPOINTS program click here.
XRewards vs. basisPOINTS:
basisPOINTS can only be used for rate buy downs and there is a minimum ATF to use them.
XRewards credits are part of the broker's compensation and they can be used for buy-downs, cash
outs or industry events. BasisPOINTS expire and XRewards do not.
Status Program
The MERIX Status Program is designed to provide a series of exclusive privileges and
benefits for our approved originators. There are three status levels: Select, Premier, and
Elite and they are based on annual funded deals between MERIX and Lendwise combined.
The more you fund with us, the higher your Status Level and the more benefits you are
entitled to including appraisal reimbursements and higher points earnings.
All originators who qualify under the Status Program for that year are also eligible to win an
all-expenses paid trip with MERIX Senior Leadership and other top MERIX originators.
*To learn more about the current MERIX Status Program and this year’s trip details
click here.
6Products and Policies
General Product Information
A closed mortgage term that offers client(s) the ability to take advantage of low,
short-term interest rates while offering the option to convert to a fixed rate
mortgage at any time during the term.
Adjustable • Client payment amount is based on their current interest rate and amortization
Rate • Interest in compounded monthly, not in advance
• Can be converted into a CLOSED Fixed Rate mortgage at any time. The new
fixed rate term must be greater or equal to the remaining term left on their ARM
For product details click here.
The Business for Self - ALT A program is designed for the self-employed
individual(s) that cannot provide traditional sources of income verification
Business for • The income reported by the borrower must be reasonable based on the industry,
Self – ALT A length of operation and type of business
• Minimum 650+ beacon/FICO score
For programs details click here.
The Business for Self - Fully Qualifying program is designed for the self-employed
Business for individual(s) that have traditional verification of income.
Self – Fully • Self-employed line 150 NOA income may be grossed up by 15% or allowable
Qualifying add- backs may be used if the client is a sole proprietor or half-owner in a
business
• Minimum beacon/FICO of 600+ up to 80% LTV, 620+ up to 95% LTV
Enables homebuyer(s) to assist family members that don’t meet income
requirements with the purchase of a home. Suited for parents wishing to buy a
home for their children in post-secondary schools and for adult children buying a
home for their elderly parents.
Family Plan
• An immediate family member is defined as a father, mother, child, brother, sister,
grandparent, legal guardian, or legal dependant
• Minimum 680+ beacon/FICO score
For program details click here.
7A closed mortgage term that offers client(s) the comfort of knowing their mortgage
payment will not change throughout the term of the mortgage.
Fixed Rate
• Interest rate is fixed for the term of the mortgage
Mortgage
• Interest is compounded semi-annually, not in advance
For product details click here.
Suitable for home buyer(s) who have established excelled credit history but have
not accumulated the required down payment or choose not to use their savings for
other asset enhancing purposes.
Flexible • Clients can use existing credit facilities and/or gifts or borrowed funds from
Down immediate family members as their down payment
Payment • Equity can be borrowed from any arm's length source, including personal loans,
line of credit, or credit cards. Always include loan repayment in the TDS calculation
at standard debt-servicing guidelines
For program details click here.
Qualified homebuyer(s) who have immigrated to Canada from another country, or
have been transferred to Canada by an employer can qualify for mortgage
insurance with as little as a 5% down payment.
New to
• Up to 90% LTV: Letter or reference from a recognized financial institution OR six
Canada &
months bank statements
Newcomers
• Up to 95% LTV: International credit bureau OR two alternative sources of credit
demonstrating timely payments (rent letters and hydro/utilities, telephone or cable)
For program details click here.
Properties that contain one to four units located in an urban city. Suited for
Owner- homebuyer(s) that have established excellent credit history and wish to occupy at
Occupied least one unit within the property.
Rental • Client(s) can have a maximum of 5 residential properties (maximum 4 rental
properties)
• Minimum beacon/FICO score of 600+ up to 80% LTV, 620+ up to 95% LTV
8Suitable for home buyer(s) that require improvements to their newly purchased
home. The purchase and the improvements are combined into one mortgage and
Purchase Plus a single advance.
Improvements • Improvements cannot exceed 20% of the initial value of the property or $40,000
• Minimum beacon/FICO score of 620+
For program details click here.
The Rate Plus Mortgage allows clients to take advantage of competitive low
Rate Plus interest rates and a full-featured mortgage with all the benefits.
Mortgage • Full 20/20 pre-payment privileges available
For program details click here.
Properties that contain two to four units located in an urban city.
• Client(s) can have a maximum of 5 residential properties (maximum 4 rental
properties)
Rental
• Minimum beacon/FICO score of 680
Non-Owner
• 50% of rental income from the subject property may be included into the
Occupied
borrower's gross annual income for the purpose of calculating borrower's TDS
• Rentals are allowed in the name of a holding company
For program details click here.
Designed to assist homebuyer(s) with the purchase of a second home.
• Property must be intended for occupancy at some point during the year by a
Second Home
borrower; or a relative of the borrower on a rent-free basis
Program
• Minimum 680+ beacon/FICO score
For program details click here.
Allows borrower(s) to transfer their existing mortgage from another lender to
MERIX or Lendwise quickly and efficiently.
• The mortgage can be increased up to $3000 over the existing principal balance
outstanding to be transferred to cover related transaction costs: per diem,
Switch/Transfer
accrued interest, administrative fees and penalties
• Minimum loan amount $100,000, minimum amortization 10 years
• Minimum beacon/FICO score of 600+ up to 80% LTV, 620+ up to 95% LTV
For program details click here.
9Underwriting Matrix and General Guidelines
Disclaimer:
The information provided is for general information purposes. Satisfying the minimum requirements
alone does not automatically result in an mortgage approval. Commitments will be issued based on
an assessment of the strength of the overall application by MERIX and its insurer partners.
Individual promotions and programs must have specific beacon/FICO score, TDS/GDS requirement,
and documentation needs. Please refer to your Director, Business Development and/or Underwriter
or Personal Account Manager for more details.
Appraisals
• All refinances, private sales, properties with renovations, sold “as is”, estate sales,
power of sale, and properties on lots greater than 5 acres will require an appraisal
• Appraisals must be ordered through NAS, Brookfield of FNF
• Appraisals must be no older than 3 months
• No drive by evaluations accepted
• Appraisal rebates available post-funding for all Switches and for Select,
Premier, and Elite Status originators on purchase transactions
Acreages
• Appraisal will be based on the house and 5 acres only, no outbuildings
• Maximum property size is 50 acres. Properties exceeding 50 acres in size
will be reviewed on an exception basis
10• Property must be for residential use only but may include some agriculture
structures such as a barn or stable
• Maximum annual income of $50,000 may be generated using buildings or
land but this income can not be used to qualify
Amortization
• Minimum 18 years
• Maximum 25 years Insured and Insurable or 30 years Uninsured
Closing Costs
• 1.5% of the value of the property
Credit
• Credit Bureau must be dated within 30 days of submission
• Applicants must have a minimum 2 years’ credit history on credit bureau
• Refinance applications require documented evidence of a minimum of 12 months’
mortgage history from last mortgage activity
• Bankruptcy/Consumer Proposal/OPD is not accepted under any circumstances
Debt Servicing
• Revolving Trades: 3% of outstanding balance
• Installment Loans: Payment on credit bureau
• Student Loan/Line of Credit: Payment on credit bureau if reporting or 3% of
balance, if not in repayment
• Secured Line of Credits: Balance amortized over 25 years against the Bank of
Canada’s conventional five-year fixed posted rate
Heat Calculation
• Account Statement OR $1.00/sq foot
• Condo fees: 50% of total fees
Insured and Insurable Deals - Purchases and Switch/Transfers
• Minimum $75,000 to a maximum purchase price or as-improved value of $999,999
• Minimum amortization 18 years; Maximum amortization 25 years
• Must qualify at the Bank of Canada benchmark rate
11• Conventional (bulk insured) and High Ratio available
Non-Insured (Uninsured) Purchases and Refinances
• Existing residential properties only. Primary resident or second home
• No rentals
• Minimum $75,000 mortgage size
• Minimum amortization 18 years; Maximum amortization 30 years
• Must qualify at the greater of the Bank of Canada benchmark rate of contract rate plus 2%
• Maximum LTV for GTA, GVA and Maritimes (Nova Scotia, PEI, New Brunswick) is 75%. All
areas outside of these is a maximum LTV of 80%
Pre-Payment Options:
• Prepay up to 20% of the Original Principal Balance each year based on the anniversary of
the loan (minimum payment is $100).
• Increase payments by up to 20% of the original registered amount each anniversary year.
• Prepay or increase payments in combination – combined prepayment must be within 20% of
the original principle balance
Property Types
• Borrowers can own a maximum of 5 residential properties (maximum 4 rental properties)
• House: minimum 800 sq ft; Condo: minimum 500 sq ft in Vancouver, Toronto, and Montreal.
600 sq feet for the rest of Canada
• Valuation is based on 5 acres, house and garage
• Leased land is acceptable provided the lease is prepaid government leased land (municipal
and federal) and there are no restrictions to access.
• No mobiles in a park-like setting, rental pools, fractional interest, log homes
Title Insurance
• Lender title insurance is required on all mortgages and this is a part of our
instructions to the solicitor/closing services
12E-Signature Policy
An E-Signature is the digital equivalent of a handwritten signature and provides MERIX with
acknowledgement and consent from the signer.
We accept E-Signatures on the following:
• Purchase & Sale Agreement
• Employment Letter
• Down Payment Gift Letter
• Broker Consent
• Commitment Letter
• PAD Form
All documents contained within the solicitor’s package still require a wet ink signature at
the solicitor’s office. Common solicitor documents include:
• Loan Agreement/Cost of Borrowing Agreements
• Mortgage Charges
• Privacy Agreement
13Income Confirmation Overview
Acceptable Income Confirmation and Sources
• Salaried/Hourly Employees
• Maternity/Parental/Adoption Leave (100% of employment
Letters of Employment
income can be used)
• Pension/Disability Income
• Self-Employed (income can be grossed up by 15%)
• Fluctuating income (i.e. commissions, bonuses, profit
sharing, overtime, gratuities)
• Contract Employment
Notice of Assessment
• Investment income
• Professionals [defined as: Physicians, dentists,
veterinarians, lawyers, accountants
** Notice of Assessments may require a signed T1013
• Salaried/Hourly Employees
Payroll Statement (Pay
• Pension Income
Stubs)
• Disability/Workers Compensation
• Salaried/Hourly Employees
Direct Pay Deposit • Pension Income
• Disability Income
Other Income Sources
• Most recent Notice of Assessment supported by a copy of
the formal separation agreement OR
Alimony/Child Support • Four months history showing regular alimony/child support
payment deposits supported by a copy of the formal
separation agreement
• This type of income is reviewed on a case by case basis
Foster Care/Care Aide
• Borrower must have at least two years’ experience as
Income
Foster parents/Care aide
• The Canada Child Benefit is not an acceptable source of
Canada Child Benefit
income
• Full return to work salary is acceptable for qualification
Maternity/Parental/Adoption purposes. A letter from the employer is required indicating
Leave the position the person is returning to, the return date, and
the salary/income upon return.
14Other Income Sources continued.
When confirming Investment Income copies of the investment
statements are required to confirm the assets generating the
income, along with Notice of Assessment as detailed below:
Investment Income/RRIF
Income • Line 150 provides a total of all reported sources of income
• Tax arrears must be confirmed as paid prior to advancing
credit
• 2-year average required
Non-Taxable Income Sources
• Letter of employment from the Band Chief
Indian Act exemption for OR both of the following:
employment income (On
reserve income) • Average of 2 most recent years Notice of Assessments
• Must confirm income is non-taxable
• Letter of employment OR
• Payroll statement/pay stub OR
Non-Taxable Pension
• Pension statements OR
Income
• Direct deposit proof (i.e. bank statements, passbook,
internet banking statements)
• Letter from institution paying the disability income
Disability Income indicating the disability is permanent and the disability
income is guaranteed for the life of the applicant
• Letter from institution paying the worker’s compensation
Workers Compensation benefits
Payments
• Payroll statement/pay stub
Grossing up non-taxable Income
Eligible non-taxable income can be grossed-up for the purposes of calculating GDS/TDS ratios,
based on the following two-tier gross up approach:
• Borrowers with non-taxable income less than $30,000 are eligible to have their non-taxable
income grossed-up by 25%
• Borrowers with non-taxable income of $30,000 or more are eligible to have their non-taxable
income grossed-up by 35%
15Down Payment Confirmation Overview
Legitimate Sources of Down Payment and Confirmation
• Bank statements, Passbook's or Internet Banking Statements
must show savings accumulation over time (minimum 3
months history).
• Ownership of bank statements, passbooks or internet print
outs must be further confirmed where the name and account
Bona Fide Savings of the
number are NOT clearly noted in the front of the passbook or
Applicant
on the bank statement or internet print out.
• Deposits provided with the Offer to Purchase: If this amount
represents a large percentage of the total down payment,
further confirmation will be required to ensure funds come
from applicant's own resources.
• Gift must be from an immediate family member
• Letter of confirmation verifying the gift is unencumbered and
requires no re-payment.
Gift from relatives
• In addition to Gift Letter, verification that the funds are on
deposit in the client's account prior to closing must be
provided.
• Bonds, Securities, and Stocks. RRSP’s may also be used,
however if not part of the Home Buyer’s Plan, may be subject
to withholding tax.
Liquid/Other Assets • Copies of the client's statements from Financial Institutions
showing the description of the assets and the current value.
Locked-In RRSPs cannot be used for down payment as they
represent pension assets.
• The actual offer to purchase and sale together with a
mortgage statement, if applicable. The offer of sale must be
Net proceeds from the sale firm (unconditional).
of property • Real Estate commissions, solicitor fees and other costs
associated with the property sale must be considered when
calculating the net equity or proceeds from the sale.
16Closing the deal: Customer Options
Assumptions
All MERIX mortgages may be assumed upon qualification. An assumption is if you are removing
existing borrower(s) and adding new borrower(s) to the mortgage. An assumption is differentiated
from a covenant change for the reason that there are entirely new borrower(s) on the mortgage
and no existing borrower(s) remain on the mortgage. New borrower(s) must be qualified for the
mortgage.
Conversions (ARM rate or Fixed Rate)
MERIX will hold the fixed rate for an ARM conversion for up to the next scheduled payment date
and the change to fixed rate will occur on the next payment date. Borrowers may choose fixed rate
term equal to or greater than their existing ARM term. The amortization period of the mortgage
may not be changed on a conversion
Covenant Changes
A covenant change is defined as adding, replacing or removing a borrower(s) from the mortgage. A
covenant change requires that at least one existing borrower remains on the mortgage. All
borrower(s) must be qualified for the mortgage.
• All existing terms of the mortgage remain the same – rate, term, amortization and maturity
date
• Notarized letter of consent or separation agreement required
• Valid for 120 days, if all broker and solicitor conditions are not finalized than a new
application is required with updated credit bureaus
• There is a $150.00 application fee for all covenant change applications payable to MERIX
• The borrower(s) are responsible for all legal fees incurred in the processing of a covenant
change
Deferring a Mortgage Payment
Clients can make arrangements to defer a mortgage payment with our payment department. Each
payment deferral has a fee of $20.00. Our payments department can be reached at 1-877-637-
7881 from 8am – 8pm ET
17Mortgage Penalties
For Fixed Rate terms of 5 years or less:
• Greater of IRD or 3 month’s Interest. IRD is based on difference between customer rate and
the then current interest rate offered by MERIX for a term closest to the term remaining on
the mortgage
Term more than 5 years:
• If you have a fixed interest rate on your mortgage and a term greater than 5 years and:
a) Prepayment occurs within the first 5 years of the term, payment of a prepayment charge
equal to the GREATER of the interest rate differential (IRD) or 3 months interest calculated
on the outstanding loan amount, and
b) If prepayment occurs after the first 5 years of the term, payment of a prepayment charge of
3 months interest calculated on the outstanding loan amount
3 and 5-year ARM term:
• 3 months interest at the current customer rate on the prepaid amount that exceeds the annual
prepayment allowance
Payment Frequencies
MERIX allows the following payment frequencies:
• Monthly
• Semi-Monthly
• Accelerated Bi-weekly
• Accelerated Weekly
• Non-Accelerated Bi-weekly
• Non-Accelerated Weekly
Pre-Payment Privileges
• Prepay up to 20% of the Original Principal Balance each year based on the anniversary of
the loan (minimum payment is $100).
• Increase payments by up to 20% of the original registered amount each anniversary year.
• Prepay or increase payments in combination – combined prepayment must be within 20% of
the original principle balance
18Renewals
A renewal notice will be sent 90 days prior to the borrower(s)’ maturity date and the rate guarantee
will be for the 90-day period prior to the maturity date of the original mortgage.
Taxes
MERIX can collect and pay taxes to the city or township on the client’s behalf. In order to enroll in
the property tax program, the client must fill out a tax application and submit it alongside their most
recent property tax bill. Tax applications are located at: https://merix.mymortgagedetails.com.
Once submitted, our property tax department will calculate the tax payment and send the client a
tax quote confirmation the tax amount, frequency, any bills the client will be responsible for and the
bill MERIX will pay on their behalf. Clients will be required to send a written (letter or email)
confirmation to proceed with enrollment.
There is a $2.00 admin fee per month and any bill due within the first 3 months of enrollment will be
the client’s responsibility.
Title
Notwithstanding how title is taken (Joint Tenants vs. Tenants in Common), MERIX requires all
parties on title to be on the mortgage, and jointly and severally liable for the payment of the entire
mortgage debt and the performance of all related obligations.
Title Insurance
MERIX requires lender title insurance on all Mortgages and this is a part of our instructions to the
solicitor/closing service.
Welcome Letters
Clients will receive a welcome letter via Canada Post or by email. The welcome letter includes
important information about their mortgage which they should keep for their records. The
information includes: account number, principle balance, term, maturity date, payment amount and
frequency, and MERIX/Lendwise contact information.
For a list of commonly asked customer questions and answers, click here.
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