Xceed is getting back into the conventional mortgage game, offering broker clients prime rates with a maximum loan-to-value of 75 per cent, although not if self-employed.
At three- and five-year terms offered at 3.14 per cent and 3.34 per cent, respectively, the product in many ways answers broker calls for more product offering both in and outside the box. That offer does not, however, extend to self-employed clients – a niche mortgage professionals are increasingly scrambling to arrange A mortgages for at rates competitive with those of their salaried counterparts.
That more-conservative Xceed is itself aiming to gain ground against its broker channel competitors, last month offering a commission boost to mortgage professionals that also raised questions about sustainability.
In effect until the end of next month, Xceed is tabbing 25 bps onto broker compensation cheques for funded deals.
The commission bump-up means “Friends of Xceed” rake in 115 basis points for each and every three-year deal and 135 bps for a five.
The aggressive initiative largely mirrors the promotions of a few other lenders and reinforces the idea that Xceed is actively looking to deepen its funding pool through brokers.
Hundreds of brokers have already welcomed Xceed back into the fold, registering to do business with the lender despite what its president calls some “skepticism” about how long it will stick around.
“Yes, we have registered 200 brokers in the weeks that we’ve been back in the broker channel, and we’re not going to stop there,” Michael Jones told MortgageBrokerNews.ca in October, pointing to growing interest among mortgage professionals. “Yes, there is some skepticism about our return to the broker channel ... but what brokers need to know is that we will stay in the channel as long as we can add value and make a healthy return.”
In September, MortgageBrokerNews.ca broke the news that the company, having settled an outstanding legal dispute with funding partner HSBC, had come back to the broker channel. The return ended a hiatus begun in January and taking many of its broker partners by surprise.
That may now be water under the bridge for the growing number of residential specialists drawn back to the lender, now entirely focused on A deals.
The company is hoping the addition of conventional mortgages will further cement broker relationship, despite the restrictions around self-employeds and 5 bps premium attached to 30-year bump-out.
Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate