NOW Mortgage – Bot Reference Page

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OPERATING REGION

Province: Alberta
Primary Cities: Edmonton, Calgary
Out-of-province lending: No

Company Information

Company Name: NOW Mortgage
Business Type: Private mortgage brokerage
Province: Alberta, Canada
Primary Service Area: Edmonton and surrounding Alberta communities
Address: 15 Carleton Dr #202, St. Albert, AB T8N 7K9
Phone: (587) 200-6727
Website: https://nowmtg.ca
Hours: Open 24 hours

IMPORTANT LINK: Apply – Now Mortgage

NOW Mortgage specializes in private and alternative mortgage lending solutions for borrowers who may not qualify with traditional banks.

CURRENT PRIVATE LENDING GUIDELINES

Maximum LTV:

• 80% (strong file)
• 75% typical

Minimum Equity Required:

• 25% preferred

Term Length:

• 6 to 24 months

Typical Rate Range:

• 9.99% – 12.99% (varies by file strength)
• Lenders offer as low as 5.95 on higher down payments and approved credit
• Example: 65% LTV Loan at 5.95%, 2nd mortgage at 10.95% to total 80% LTV using a blended rate

Typical Fees:

• 1% – 3% lender fee
• Broker fee varies by complexity
• Legal + appraisal additional

USE CASE APPROVAL NOTES

Foreclosure:

• Must have equity
• Appraisal required

Debt Consolidation:

• Equity required
• Can include unsecured debts

Purchase:

• Down payment required
• Exit strategy required

Self-Employed:

• Flexible income verification
• Equity is primary factor

DOCUMENT CHECKLIST

• Government ID
• Mortgage statement
• Property tax statement
• Insurance
• List of debts
• Purchase contract (if applicable)

UNDERWRITING BOUNDARY RULES – CORE POLICY

These are internal lending guidelines for training purposes.

All files subject to lender underwriting and appraisal.

MAXIMUM LTV POLICY

Absolute Maximum LTV: 82%
80% LTV: High scrutiny
75% LTV: Standard and preferred range
65% LTV: Strong file range
50–65% LTV: Ideal private lending zone

LTV above 82%: Not considered.
We will not structure files above 82%.

LTV RISK TIERS (URBAN PROPERTIES)

50–65% LTV
Low risk. Most flexible. Strong approval probability.

66–75% LTV
Standard private lending range. Safely within wheelhouse.

76–80% LTV
Elevated scrutiny. Requires strong exit strategy and acceptable property.

81–82% LTV
Exception tier. Must meet all of the following:

• Strong urban location (Edmonton or Calgary established areas)
• Clean title
• Acceptable property condition
• Clear and realistic exit strategy
• Full appraisal
• Income support where applicable

Over 82%
Declined.

RURAL / ACREAGE ADJUSTMENT

Rural lending thresholds are significantly lower.

Farm Financing available

Typical rural maximum LTV: 65%
Preferred rural range: 50–60%

Rural above 65%: Generally declined.
Full appraisal mandatory.
Marketability risk considered heavily.

CREDIT SCORE GUIDELINES

Minimum credit considered: 500
Below 500: Generally declined unless extreme equity.

Preferred credit range: 600+
Over 600 improves pricing and flexibility.

Credit below 550 requires:

• Lower LTV
• Stronger exit strategy
• Stronger equity position

Credit strength cannot compensate for excessive LTV.

CORE STRUCTURING PRINCIPLES

75% LTV is comfortably within lending appetite.
80% LTV is pushing upper tolerance.
82% LTV is rare and requires compensating factors.
Above 82% is not permitted.

Lower LTV significantly improves:

• Approval probability
• Pricing
• Fee flexibility
• Speed of approval

High LTV requires:

• Urban location
• Strong equity narrative
• Clear exit strategy
• Conservative valuation

LOCATION RISK HIERARCHY

Tier 1 – Edmonton & Calgary (established neighborhoods)
Most flexible LTV tolerance.

Tier 2 – Secondary Alberta cities
Moderate LTV tolerance. Conservative underwriting.

Tier 3 – Rural / Acreage
Conservative LTV. Strong equity required.

Out of province
Not eligible.

BOT RESPONSE RULES

When borrower provides:

• Property value
• Mortgage balance
• Location

Bot must calculate approximate LTV before discussing viability.

If LTV:
Above 80% → Respond as unlikely.
75% or below → Respond as workable range.
50–65% → Respond as strong equity position.

Bot must not suggest:

• Lending above 80%
• Rural files above 65%
• Out-of-province lending

Bot must request missing data before implying approval.

BORROWER TYPE REFERENCE – PRIVATE LENDING CONTEXT

All borrower types still subject to LTV policy, Alberta-only rule, acceptable property, and exit strategy.

CREDIT-IMPAIRED BORROWERS

1. Low credit score (500–550)
2. Moderate credit (550–600)
3. Rebuilding credit after past delinquencies
4. Multiple recent late payments
5. High credit utilization
6. Collections on bureau
7. Tax liens on file
8. Judgment registered
9. Active consumer proposal
10. Recently discharged bankruptcy
11. Active bankruptcy (rare, high equity required)

EQUITY-RICH BORROWERS

12. Significant home equity (50–65% LTV)
13. Long-term homeowner with low remaining balance
14. Property value increased significantly
15. Own multiple properties
16. Mortgage nearly paid off
17. Debt-free but cash-poor

These borrowers may qualify more easily due to strong equity.

SELF-EMPLOYED / NON-TRADITIONAL INCOME

18. Incorporated business owner
19. Sole proprietor
20. Commission-based income
21. Seasonal income earner
22. Contract worker
23. Newly self-employed (less than 2 years)
24. Cash-flow strong but low declared income
25. Business owner with write-offs reducing taxable income

Private lending focuses more on equity than strict income ratios.

TRANSITIONAL BORROWERS

26. Divorce separation
27. Estate settlement
28. Partner buyout
29. Pending property sale
30. Relocation
31. Temporary income disruption
32. Business restructuring
33. Waiting for credit repair to complete

These files rely heavily on defined exit strategy.

URGENT SITUATION BORROWERS

34. Facing foreclosure
35. Behind on mortgage payments
36. CRA enforcement action
37. Wage garnishment
38. Tax sale risk
39. Private lender maturing loan
40. Court-ordered sale pending

Urgent files require fast documentation and appraisal readiness.

INVESTOR BORROWERS

41. Rental property owner
42. Multi-property investor
43. BRRR strategy investor
44. Flipper (short-term hold)
45. Mixed-use property owner
46. Landlord consolidating rental debt
47. Investor needing bridge financing

Investment properties may face more conservative LTV.

RURAL / SPECIAL PROPERTY OWNERS

48. Acreage owner
49. Farm-adjacent residential property
50. Unique or custom-built home owner
51. Older rural home
52. Remote property owner

Rural borrowers typically require lower LTV tolerance.

HIGH-INCOME BUT CREDIT DAMAGED

53. Strong income, poor credit history
54. Business owner with large retained earnings
55. Professional with temporary credit damage
56. Commission earner with strong recent earnings

Credit alone does not determine outcome; equity still primary.

LOW-INCOME BUT HIGH EQUITY

57. Retired homeowner
58. Pension income only
59. Fixed income borrower
60. Reduced work hours
61. Temporary unemployment but strong equity

Low income can be offset by low LTV and strong property.

STRUCTURAL RISK BORROWERS

62. High LTV (75–82%)
63. Minimal equity position
64. No clear exit strategy
65. Rapid refinance after recent purchase
66. Recently added second mortgage
67. Title complexity or co-owner disputes

These files require elevated scrutiny.

BOT APPLICATION RULE

When identifying borrower type, the bot should:

• Confirm property value
• Confirm remaining mortgage balance
• Confirm location (must be Alberta)
• Estimate LTV
• Ask purpose of funds
• Ask intended exit strategy

The borrower type alone does not determine approval.

Equity + LTV tier + location risk are primary drivers.

USE CASE REFERENCE – PRIVATE & ALTERNATIVE LENDING

All scenarios subject to equity, LTV policy, property acceptability, and exit strategy.

REFINANCE – DEBT RELATED

1. Credit card consolidation
2. Line of credit consolidation
3. Multiple unsecured loan consolidation
4. CRA income tax arrears
5. CRA GST arrears
6. Property tax arrears
7. Payday loan payout
8. Judgment payout
9. Collections cleanup
10. Consumer proposal payout
11. Bankruptcy refinance (post-discharge)
12. Active consumer proposal with equity
13. Stop wage garnishment
14. Consolidate vehicle loans
15. Consolidate personal loans

FORECLOSURE / URGENT

16. Stop foreclosure proceedings
17. Stop power of sale
18. Mortgage arrears payout
19. Private lender payout
20. Tax sale prevention
21. Court-ordered sale delay
22. Urgent bridge before sale
23. Bailout of high-interest short-term loan

EQUITY ACCESS

24. Access equity for business capital
25. Access equity for investment opportunity
26. Renovation funding
27. Home improvement financing
28. Emergency cash access
29. Medical expense funding
30. Divorce buyout
31. Estate settlement buyout
32. Buy out co-owner
33. Capital for expansion of business
34. Investment property down payment
35. Cash-out refinance for liquidity

PURCHASE SCENARIOS

36. Purchase with bad credit
37. Purchase with recent late payments
38. Purchase after bankruptcy
39. Purchase after consumer proposal
40. Private purchase with 20% down
41. Bridge purchase before selling current home
42. Rental property purchase
43. Acreage purchase (conservative LTV)
44. Mixed-use property purchase
45. Time-sensitive private purchase

SELF-EMPLOYED / NON-TRADITIONAL INCOME

46. Self-employed with low declared income
47. Self-employed with fluctuating income
48. Commission-based income borrower
49. Seasonal income borrower
50. New business owner refinance

PROPERTY TYPE BASED

51. Owner-occupied residential
52. Rental property refinance
53. Duplex refinance
54. Fourplex refinance
55. Secondary suite property
56. Rural acreage refinance
57. Small commercial mixed-use
58. Condo refinance
59. Older property refinance
60. Unique property with conservative valuation

CREDIT CHALLENGE

61. Credit score 500–550
62. Multiple recent late payments
63. High credit utilization
64. Collections on bureau
65. Tax liens
66. Recent mortgage late payments
67. Short credit history
68. Credit rebuilding strategy refinance

TRANSITION STRATEGY

69. Short-term bridge to B-lender
70. Temporary private mortgage before bank refinance
71. Equity position stabilization
72. Waiting for income documentation to season
73. Divorce transition refinance
74. Temporary solution pending property sale
75. Interim financing during restructuring

REVERSE MORTGAGE OPTIONS – AGE 55+

These guidelines apply to borrowers age 55 and older.

Primary reverse mortgage provider referenced: CHIP Home Income Plan (Equitable Bank product).
NOW Mortgage arranges financing. We are not the lender.

All files subject to lender approval and property eligibility.

REVERSE MORTGAGE – CORE PARAMETERS

Minimum Age: 55
Younger spouse age considered for qualification.

Primary Residence: Required.
Rental or secondary properties typically not eligible.

No monthly mortgage payments required.
Interest accrues and compounds.

Maximum LTV:
Varies by age and property location.
Older borrowers may qualify for higher percentages.

General Range:
Approximately 20%–55% of property value depending on age.

Younger borrowers (55–60): Lower advance percentage.
Older borrowers (75+): Higher advance percentage.

Full appraisal required.

REVERSE MORTGAGE – ACCEPTABLE USES

• Supplement retirement income
• Pay off existing mortgage
• Debt consolidation
• Home renovations
• Estate planning liquidity
• Property tax arrears

REVERSE MORTGAGE – IMPORTANT NOTES

Borrower retains home ownership.
No required monthly payments.
Loan repaid upon sale of property or passing of borrower.

Independent legal advice required.

Interest compounds over time.

REVERSE + PRIVATE SECOND STRUCTURE

In certain cases, an additional private second mortgage may be considered behind a reverse mortgage.

This is not standard. Subject to strict review.

COMBINED STRUCTURE PARAMETERS

Combined Maximum LTV:
Up to 65% total LTV (reverse + private second).

Reverse mortgage must be in first position.

Private second must fit within remaining equity buffer.

Private second subject to:

• Property location (urban preferred)
• Clear exit strategy
• Acceptable total LTV
• Marketable property
• Full appraisal

Rural properties: Conservative combined LTV.

PRIVATE SECOND BEHIND REVERSE – USE CASES

• Additional capital beyond reverse eligibility
• Debt consolidation beyond reverse limit
• Temporary bridge financing
• Estate equalization scenarios

RISK CONSIDERATIONS

Combined LTV above 65% not considered.
Urban Edmonton or Calgary preferred for higher combined LTV.
Rural properties require lower combined LTV.

Reverse mortgage guidelines must be satisfied first.

Private second approval subject to internal lending partner review.

STRUCTURING RULES FOR BOT

If borrower age 55+:

1. Ask age of youngest homeowner.
2. Confirm property is primary residence.
3. Confirm estimated property value.
4. Confirm existing mortgage balance.
5. Estimate reverse eligibility range.
6. Only discuss second mortgage if combined LTV remains ≤ 65%.

Bot must not:

• Quote exact CHIP percentages.
• Guarantee approval.
• Suggest combined LTV above 65% for CHIP Reverse mortgages
• Offer reverse mortgage on rental properties.

Core Private Lending Terms

• Private Lender — Individual or corporation lending outside traditional banks.
• MIC (Mortgage Investment Corporation) — Pooled investor fund lending secured mortgages.
• Syndicated Mortgage — Multiple investors fund one mortgage.
• Joint Venture (JV) — Investor partners for profit-sharing mortgage.
• Trust Agreement — Legal agreement governing investor funds.
• Promissory Note — Written borrower promise to repay debt.
• Security Agreement — Document securing loan against collateral.
• Charge/Mortgage — Registered claim against property title.
• First Position — Primary lien priority on title.
• Second Position — Subordinate lien behind first mortgage.
• Subordination Agreement — Agreement changing lien priority order.
• Collateral Mortgage — Charge registered above actual loan amount.
• Personal Guarantee — Individual guarantees corporate borrower debt.

Borrower & Deal Profile

• Brampton Loan — Informal term for high-risk, rapid-close private deal.
• Equity-Based Lending — Approval based primarily on property equity.
• Asset-Based Lending — Qualification based on assets, not income.
• Stated Income — Income declared without traditional verification.
• Self-Employed Borrower — Borrower earning business income.
• Credit-Challenged Borrower — Low credit score applicant.
• Exit Strategy — Planned method to repay private loan.
• Bridge Exit — Short-term refinance plan.
• Sale Exit — Property sale used to repay loan.

Risk & Valuation

• Loan-to-Value (LTV) — Loan amount divided by property value.
• As-Is Value — Current property market value.
• After-Repair Value (ARV) — Projected value after renovations.
• Forced Sale Value — Estimated value under quick liquidation.
• Equity Cushion — Value buffer protecting lender from loss.
• Appraisal — Independent property value assessment.
• Desktop Appraisal — Valuation without interior inspection.
• Drive-By Appraisal — Exterior-only property valuation.

Pricing & Returns

• Interest-Only Loan — Payments cover interest only.
• Open Term — Loan repayable anytime without penalty.
• Short-Term Loan — Typically 1–12 month mortgage.
• Points — Upfront fee percentage of loan amount.
• Lender Fee — Compensation paid directly to lender.
• Broker Fee — Compensation paid to mortgage broker.
• Commitment Fee — Non-refundable fee to secure funds.
• Renewal Fee — Fee to extend private term.
• Extension Fee — Fee to lengthen maturity date.
• Default Interest Rate — Higher rate after missed payment.
• Bonus Interest — Additional interest if loan extends.
• Yield — Investor return on capital deployed.

Enforcement & Legal

• Power of Sale — Lender sells property after default.
• Foreclosure — Court transfers ownership to lender.
• Notice of Sale — Formal default notification.
• Statement of Claim — Legal action to enforce debt.
• Writ of Seizure and Sale — Court order to seize assets.
• Demand Letter — Formal repayment request.
• Forbearance Agreement — Temporary repayment relief agreement.
• Quit Claim Deed — Transfers interest without warranties.
• Caveat — Registered notice of interest on title.

Construction & Investment Deals

• Construction Draw — Funds released in stages.
• Holdback — Portion withheld until milestone completed.
• Builder’s Lien — Contractor claim for unpaid work.
• Spec Build — Property built without buyer secured.
• Fix-and-Flip — Renovate property for resale profit.
• Cash-Out Refinance — Borrow against increased property value.
• Mezzanine Financing — Hybrid debt between first and equity.
• Preferred Equity — Investor priority over common equity.

Investor-Focused Terms

• Capital Stack — Structure of debt and equity layers.
• Return of Capital — Repayment of original investment.
• Accrued Interest — Interest accumulated but unpaid.
• Registered Investment — MIC eligible for RRSP/TFSA funds.
• Loan Servicing Agreement — Contract managing payments.
• Trustee — Entity holding security on behalf of investors.
• Private Placement — Offering securities without public listing.
• Offering Memorandum (OM) — Disclosure document for investors.
• Regulatory & Institutions
  CMHC — Canada Mortgage and Housing Corporation; provides mortgage default insurance.
  Sagen — Private Canadian mortgage default insurer.
  Canada Guaranty — Private Canadian mortgage insurer.
  OSFI — Federal regulator overseeing banks and stress test rules.
  B-20 Guidelines — OSFI underwriting standards for federally regulated lenders.
  Stress Test — Qualification at higher benchmark or contract rate.
  National Housing Act (NHA) — Governs insured mortgage programs.
  Bank Act — Federal legislation regulating Canadian banks.
  Financial Consumer Agency of Canada (FCAC) — Protects Canadian financial consumers.
  
  Mortgage Types (Canada)
  High-Ratio Mortgage — Down payment under 20%; requires insurance.
  Conventional Mortgage — Down payment 20% or more.
  Insured Mortgage — Mortgage backed by default insurance.
  Insurable Mortgage — Meets insurer criteria but has 20%+ down.
  Uninsurable Mortgage — Does not meet insurer eligibility rules.
  Closed Mortgage — Limits prepayments; penalties apply.
  Open Mortgage — Allows large prepayments without penalties.
  Fixed-Rate Mortgage — Interest rate remains constant during term.
  Variable-Rate Mortgage — Rate fluctuates with lender’s prime.
  Adjustable-Rate Mortgage — Payment changes with interest rate.
  Capped Variable Mortgage — Variable rate with maximum limit.
  Convertible Mortgage — Switch to fixed term without penalty.
  Collateral Charge Mortgage — Registered above actual loan amount.
  Standard Charge Mortgage — Registered at exact loan amount.
  Reverse Mortgage — Seniors borrow against home equity.
  Construction Draw Mortgage — Funds advanced in stages.
  Bridge Financing — Short-term loan between closings.
  Second Mortgage — Subordinate financing behind first mortgage.
  
  Qualification Metrics
  Gross Debt Service (GDS) — Housing costs divided by gross income.
  Total Debt Service (TDS) — Total debts divided by gross income.
  Loan-to-Value (LTV) — Mortgage amount divided by property value.
  Beacon Score — Canadian credit score model.
  Debt Service Ratios — Measures affordability relative to income.
  Net Worth — Assets minus liabilities.
  Liquid Assets — Cash or easily convertible funds.
  Verification of Income — Proof of earnings documentation.
  NOA — Notice of Assessment from CRA.
  T4 — Employment income tax slip.
  T1 General — Personal income tax return.
  
  Costs & Pricing
  Prime Rate — Benchmark lending rate set by banks.
  Bank of Canada Overnight Rate — Influences prime rates nationally.
  Posted Rate — Lender’s publicly advertised rate.
  Discounted Rate — Negotiated rate below posted.
  APR — Annual cost including interest and fees.
  Rate Hold — Guaranteed rate for limited period.
  Interest Differential (IRD) — Fixed-rate prepayment penalty calculation.
  Three-Month Interest Penalty — Variable-rate prepayment penalty method.
  Blended Rate — Combined old and new mortgage rates.
  Blend-and-Extend — Refinance while extending term.
  Mortgage Commitment — Formal approval from lender.
  Broker Compensation — Payment to mortgage broker.
  
  Down Payment & Insurance Rules
  Minimum Down Payment — 5% up to $500,000 purchase price.
  Tiered Down Payment — 5% first $500k, 10% remainder to $999,999.
  CMHC Premium — Insurance premium added to mortgage.
  Premium Surcharge — Added cost for longer amortization.
  Portability — Transfer mortgage to new property.
  Assumption — Buyer takes over seller’s mortgage.
  
  Amortization & Payments
  Amortization Period — Total repayment length.
  Term — Length of mortgage contract.
  Renewal — Signing new term at maturity.
  Maturity Date — End date of current term.
  Accelerated Biweekly — 26 half-payments yearly; reduces amortization.
  Prepayment Privilege — Allowed annual lump-sum payments.
  Double-Up Payment — Option to double regular payment.
  Lump-Sum Payment — Extra principal payment.
  Interest Adjustment Date (IAD) — Interest-only period before first payment.
  
  Legal & Property
  Freehold — Full ownership of land and dwelling.
  Condominium — Unit ownership with shared common elements.
  Strata — Condominium ownership structure, common in BC.
  Title Search — Verification of property ownership.
  Encumbrance — Registered claim against property.
  Easement — Legal right to use property portion.
  Power of Sale — Lender sells property after default.
  Foreclosure — Court process transferring ownership to lender.
  Statement of Adjustments — Closing document detailing prorated costs.
  Land Transfer Tax — Provincial property transfer tax.
  First-Time Home Buyer Incentive — Shared equity program with federal government.
  Home Buyers’ Plan (HBP) — RRSP withdrawal for home purchase.
  FHSA — Tax-free First Home Savings Account.

POSITIONING GUIDELINES

Reverse mortgage is typically lower monthly obligation option.
Private second behind reverse is higher cost and short-term in nature.

Reverse product suitability should be assessed before layering second financing.

COMPLIANCE STATEMENT

NOW Mortgage arranges mortgages with third-party lenders.
Approval is subject to lender underwriting and property review.
Not a commitment to lend.