SafeGuard Underwriting

Partnering up with fintech start-up Kabbage, the Bank of Nova Scotia is set to offer small business loans to clients in Canada and Mexico, in what has been deemed a particularly effective demonstration of how traditional financial institutions can leverage the particular advantages of fintechs to provide high-quality products online.

In Alexandra Posadzki’s report for The Canadian Press, Scotiabank—which has previously invested in the Atlanta-based Kabbage—announced that it will be providing loans of up to $100,000 for up-and-coming businesses who are not currently borrowers starting July (in Canada) and August (in Mexico).

Kabbage’s technology platform makes full use of data analytics to compile credit reports within minutes, which would allow borrowers to conduct their transactions without the hassle of paperwork and going to the bank in person.

Scotiabank said that it’s aiming to offer the product to Chile, Colombia, and Peru in the near future, and throughout Canada by the first half of 2017.

Canada's five biggest banks all announced Tuesday that they are partnering with Apple Pay to bring the mobile payment system to their customers. Here is what you need to know:

When will the service be available?

That depends on who you bank with. Royal Bank and CIBC customers can start using Apple Pay with their credit and debit cards immediately, while TD Bank, Bank of Montreal and Scotiabank clients will have to wait several weeks or months. Those who have MasterCards from Canadian Tire Bank and ATB Financial can also now use Apple Pay.

How does it work?

Customers load eligible credit or debit cards into a smartphone. At checkout, the customer holds the device close to the merchant's contactless reader while putting his or her finger on the touch ID fingerprint scanner to authenticate the transaction.
What devices does it work with?

Apple Pay only works with newer devices such as the iPhone 6 or later models, or the Apple Watch when paired with an iPhone 5.
Is there a limit to how big of a purchase you can make?

For now, customers can only pay for purchases worth $100 or less using Apple Pay, although industry insiders say that could change in the future.

What security features are in place?

When a credit or debit card is loaded into the app, a randomly generated number called a token is stored instead of the real card number. That way, hackers can't steal the card number out of the device.

Canadian Press

FSCO (the agency tasked with regulating mortgage brokers in Ontario) reported a case in June 2015 where an investor decided to invest $1.5 million in a private mortgage. The professional brokering the deal lied to the investor and told her it was a first mortgage when in fact it was a second mortgage. The investor put their $1.5 million at a much larger risk because the proper due diligence was not made prior to lending.

Safeguard Underwriting offers peace of mind to the investor by assessing the risk and scrutinizing all information provided by the borrowers and brokers involved in the transaction. We allow lenders to invest with confidence knowing they have all pertinent information prior to lending.

Contact us for more information 1-877-777-9908 ext. 220

OSFI (the Canadian government's top banking regulation agency) has just released a statement on regulatory revisions. These revisions would allow the banks to adapt to changes in property values by increasing the capital held against mortgages in Toronto & Vancouver. These revisions would be effective November. This means that the large Schedule A banks, such as TD, CIBC, RBC, HSBC & National Bank will have higher costs in funding. These higher costs will be passed onto the consumer, most likely with an increase to the contract interest rate.

Collateral valuation is a determining factor in whether you should lend your money. Our mantra at Safeguard Underwriting is "Drive the comps yourself". That means that we do not just look at photos on an appraisal. We take the appraisal, get in our vehicles and drive to the subject property as well as each comparable to make the determination of value ourselves. Safeguard Underwriting lets you lend with confidence every time.

Safeguard Underwriting ensures the private lender is given full and complete transparency, important information and enhanced consumer protection to assist them in making an informed decision as to whether to invest in a mortgage.

http://www.thestar.com/business/personal_finance/2016/02/15/why-this-could-be-an-investment-opportunity.html

Why this could be an investment opportunity. | Toronto Star Investing directly in green energy projects just became a whole lot easier for Canadians looking to shift their savings away from fossil fuels.

If a lender's funds are to be used to finance a property that is vacant land, a development or a construction project, the details of the project and proposed use must be indicated by the borrower, developer and/or mortgage broker and solicitor with the starting and completion date.

The lender should be notified if there are outstanding property taxes owing to the municipality at the time of closing. If there are, it is highly recommended that the outstanding balance is paid from the proceeds. There is a potential risk to your investor/lender if any property taxes are left unpaid on closing and continue to accumulate. Outstanding property taxes take priority in a default and subsequent municipal sale situation and are paid prior to any existing mortgage enbumrances. This places the investment at risk and should be avoided at all times.

All mortgage investments carry a risk. There is a relationship between risk and return. In general, the higher the rate of return, the higher the risk of the investment. Safeguard Underwriting will very carefully assess the risk of the mortgage transaction described within the Disclosure Statement of the mortgage along with supporting documentation before advising on making a commitment to lend.

SERVICES WE PROVIDE
Application analysis, review and recommendation
Credit analysis, review and recommendation
Appraisal analysis, review and recommendation
Document analysis, review and recommendation
Borrower interview, review and recommendation
Site Visit(s)
Environmental Phase 1 & Phase 2 analysis
MLS review
Purchase & Sale Agreement review
Communication with Brokers
Communication with Borrowers
Request documents
Communication with Lender’s solicitors

Understanding Your Equifax Credit Score
The Equifax Credit Score ranges from 300-900. Higher scores are viewed more favorably. Your Equifax credit score is calculated from the information in your Equifax Credit Report.
Here are the 3 aspects that have the highest impact on your credit score:
1. Ratio of satisfactory trades to total trades within the last 24 months
2. Number of personal finance trades with high utilization in the last 3 months
3. Worst rating for installment trades within the last 12 months