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Spotlight on Second Mortgages 

At Magenta, we know there are many reasons why clients choose to take out second mortgages. For some, second mortgages are valuable financial management strategies for dealing with debt efficiently at lower interest rates. For others, second mortgages are an avenue for funding the acquisition or improvement of homes, paying tuition for oneself or one’s family, or any one of life’s other major expenses.

Business For Self

Magenta offers second mortgages tailored to the needs of alternative borrowers whose unique circumstances may not be best served by other financial institutions. For instance, consider the small business owner looking to use home equity to fund their business. If that business has a significant cash component, it would lack the verifiable income needed to qualify for a bank loan. But with Magenta’s Stated Income Program for Second Mortgages, that borrower would only need to provide non-traditional income documents like business ownership, bank statements and other supporting documentation to qualify for a Stated Income Second Mortgage with up to 75% loan-to-value (LTV).

Rentals

Consider also the property investor hoping to get a second mortgage on a rental property, but running up against the limits banks place on the number of rental properties a borrower can have. With a Magenta Second Mortgage for Rental Properties, not only is there a 100% offset on rental income with no maximum number of doors, there is up to 75% LTV on student rentals. Furthermore, Magenta offers  2-year terms in addition to traditional 1-year terms to better suit the needs of a property investor’s longer view.

Our solutions are designed not only to address your client’s short-term credit challenges but also to help them return to traditional lending channels as soon as possible. Keep reading to find out why Magenta’s mortgages are worth a second look:

Smaller Monthly Payments

We offer up to 50-year amortization, or interest-only payments, and balance our rates and fees in favour of smaller monthly payments, passing the benefits on to your client’s cash flow.

New Longer Terms

Magenta is proud to have recently added 2-year terms as an option on our second residential mortgages, in addition to our traditional 1-year term offerings.

24-Hour Quick Closes

If a borrower’s lending institution option falls through, our team will put in the work to help you meet your client’s deadline.

Capitalized Fees

We capitalize lender fees and broker compensation, meaning the cost is added to the client’s principal and spread over the life of the mortgage.

No Notice of Assessment? No Problem

Even clients with low or no documentation verifying their income are eligible for second mortgages through Magenta, subject to only a small increase in their starting fee.

Simplified Financial Planning

We’ll match the maturity date of our second mortgage solution with your client’s first mortgage, simplifying their financial planning.

A selection of second mortgages funded this year (borrower and identifying property details have been removed):

* Small Centre refers to properties located in towns with a population of 1,000 or more within 45 minutes of one of our urban centres.  Rural refers to properties with septic and well access within 45 minutes of one of our urban centres.

Second Mortgages are available in urban, small centre and rural locations throughout our lending areas. Please view our Google Map or speak with your Magenta representative to find out more.

Interested in what Magenta has to offer?  Connect with our mortgage origination team, or click here to learn more.

Five Discussions to have with your Clients

As a new Mortgage Agent there is a lot of information to take in including processes and regulations. Learning how to conduct a thorough client interview and submit an application in good order is key to hitting the ground running. Successful Mortgage Agents provide full, detailed applications and clearly demonstrate that they know their client. How do you do that effectively? You ask the right questions, listen and take notes.

Here are 5 basic conversations to have with your client to help you gather the information you need:

Question 1: “Tell me about your credit history.”

Your follow-up questions should cover:

• How long they have had credit
• How they pay their credit, i.e. paying minimum payment or full balances
• Whether they have missed payments
• If they have co-signed any loans
• If they have had any collections, judgments, support payments, bankruptcies
• Whether they have filed/paid their income taxes and are they up to date on property taxes

Question 2: “Tell me about your income.”

Your follow-up questions should cover:

• All sources of income
• If they are self employed, how the business is set up, i.e. sole proprietorship or incorporated
• How long have they been at their current and previous jobs
• How stable and consistent is their income?

Question 3: “Tell me about your property.”

Depending on whether it’s a new purchase or refinance, your follow-up questions should cover:

• What type of property is it, i.e. owner occupied, rental, mixed use
• How long have they lived there
• Any improvements they have done or improvements needed
• Unique features of the home
• Known negatives, e.g. previous fire or flood damage

Question 4: “Tell me about your future plans and goals.”

Your follow-up questions should cover:

• How long they intend to stay in their home
• Whether they expect lump sums of income, e.g. work bonuses, inheritance etc.
• Any anticipated job changes
• Expected changes to family, e.g. newborn children or college costs

Question 5: “Tell me what’s important to you about your mortgage.”

Your follow-up questions should cover whether their priorities include:

• Flexible payment options
• Prepayment penalties
• Portable/assumable
• Lowest payment vs quickest payoff

An effective Mortgage Agent will take the time to have a thorough conversation with their clients, personalize the experience by asking the right questions, and then listen. Once you have a complete picture of your client’s situation, you can readily place them with the lender with whom they have the best fit.

Financial Literacy Month: Protect Your Financial Rights

It’s National Financial Literacy Month (FLM), where the Financial Consumer Agency of Canada (FCAC) helps equip Canadians with practical tools and tips to manage their money in a changing world. Throughout November, the FCAC is discussing the ever-changing financial marketplace and the importance of checking up on financial health.

At Magenta, our goal is to connect people with opportunities to build a better tomorrow. This month, we’re furthering our goal by supporting National Financial Literacy Month and sharing resources dedicated to helping Canadians:

• Get the pulse on their financial health
• Check up on their debt
• Prepare for and handle a financial emergency
• Optimize their financial health

For the final week of Financial Literacy Month, we’ll be discussing:

• protecting your financial rights;
• financial rights when borrowing money; and
• sharing resources to help you understand your rights and responsibilities when dealing with financial institutions.

Protecting Your Financial Rights

The best way to protect your financial rights is to understand what rights you have in the first place. Did you know that Canadian laws and regulations help ensure that financial consumers are protected, have access to basic banking services, and are treated fairly by financial institutions? These regulations include your right to:

• open a personal account at any bank with proper identification;
• cash a Government of Canada cheque for free at any bank with proper identification;
• receive clear and simple information that’s not misleading about products and services;
• get products and services for which you’ve provided express consent; and
• have your issues resolved through a bank’s complaint-handling process.

Understanding these regulations is the first step to ensuring you can protect your financial rights when dealing with your financial institution(s).

Paying Your Mortgage & Your Financial Rights As A Borrower

When it comes to paying your mortgage, banks are also expected to help consumers who are experiencing financial difficulties due to exceptional circumstances. If you are struggling to pay your mortgage, it’s important that you contact your bank to learn about the relief measures that may be available to you, such as making a special payment arrangement, converting your interest rate, and mortgage deferral programs.

In November 2023, the Liberal government released the Fall Economic Statement (FES), which detailed an initiative it calls the Canadian Mortgage Charter. This charter builds upon the existing expectations related to how financial institutions treat their borrowers. To learn more, please click here: “The New Canadian Mortgage Charter Explained“.

As a Canadian borrower, you have rights when applying for a mortgage, making prepayments, renewing your mortgage, and more. Click here to explore these topics and learn more about your financial rights as a borrower.

Understanding Your Financial Rights & Responsibilities

When dealing with financial institutions, the FCAC has compiled a list of helpful resources designed to help you understand your financial rights and responsibilities. Below, please find a list of some of these resources:

• Protection for bank customers: New and enhanced protections when dealing with your financial institution.
• Knowing your banking rights: Your rights for opening a bank account, cashing cheques, account fee increases, and more.
• Knowing your mortgage rights: Your rights when applying for a mortgage, making prepayments, renewing your mortgage, and more.
• Saving and investment rights: Learn more about your rights as an investor in registered savings plans or other investment products.

Please visit the FCAC’s “Financial rights and responsibilities” page to explore more resources available to you regarding your financial rights.

Thank you for tuning in this month with Magenta as we’ve explored the weekly themes of Financial Literacy Month. To learn more about Financial Literacy Month and see additional resources provided by the FCAC, please click here.

Financial Literacy Month: Optimize Your Financial Health 

It’s National Financial Literacy Month (FLM), where the Financial Consumer Agency of Canada (FCAC) helps equip Canadians with practical tools and tips to manage their money in a changing world. Throughout November, the FCAC is discussing the ever-changing financial marketplace and the importance of checking up on financial health.

At Magenta, our goal is to connect people with opportunities to build a better tomorrow. This month, we’re furthering our goal by supporting National Financial Literacy Month and sharing resources dedicated to helping Canadians:

• manage their money and debt wisely;
• save for the future; and
• understand their financial rights.

This week we’ll be talking about optimizing your financial health, managing your money to limit financial difficulties and improving your financial situation. Money worries are the biggest source of stress for Canadians: more than work, personal health, or even relationships. Canadians can avoid this stress by adopting a handful of financial strategies and sticking to them. It’s important to keep in mind that making a budget or consolidating your debt won’t solve all of your money problems overnight, just like getting that new gym membership won’t suddenly make you a marathon runner. Improvements to your financial health, like your physical health, are incremental, the sum total of thousands of little decisions you make every day to maintain your commitment to yourself and those you rely on.

Optimizing Your Financial Health

Up for the challenge? Here are a few ways to get started:

Know the Difference Between Good and Bad Debt: Debt isn’t always bad. Sometimes, taking on debt in the present can help mitigate financial problems in the future, provided that that debt is being used to create value, or to produce wealth in the long term. Depending on your location, renovating your home- thereby increasing its resale value- could be a valid reason to take on debt. Taking on a student loan in order to acquire the necessary credentials to get a better-paying job is another example of a debt that could more than pay for itself in the long run.

Make a Budget to Manage Your Money: Simply keeping track of how much you earn, spend, and save can radically change your outlook on your finances. By clarifying your financial situation, you may find it easier to set limits on your spending and live within your means, as well as feel more inclined to be proactive in looking for ways to reduce or eliminate costs.

Set up an Emergency Fund: When you have money set aside for unexpected expenses, you can handle those expenses without having to go into debt or accept high-cost loans to make up the deficit.

Avoid Debt by Saving up for Your Financial Goals: When you not only identify but commit to paper (digital or otherwise) your financial goals, you may feel more accountable when it comes to whether or not you achieve them. It can be all too easy for financial aspirations to appear impossible or abstract: when you itemize your goals with specific dollar values and time frames, it becomes easier to see how far you’ve come, and how far you’ve left to go.

Financial Health Crossword Puzzle

Did you get all the words right? Click here to see the Crossword Answer Key.

Tune in next week to learn more about our final topic: knowing your financial rights. To learn more about Financial Literacy Month and see additional resources provided by the FCAC, please click here.

What is a Mortgage Investment Corporation (MIC)?  

A Mortgage Investment Corporation (MIC) is an investment fund where investors pool their money to lend to borrowers as private mortgages. By adding their money to this pool, an investor purchases shares in a MIC. This is an alternative fixed-income investment: a security which pays investors fixed amounts on predetermined dates. Most MICs then supplement the pool of shareholder funds by borrowing money from banks in the form of loans, though the precise arrangement varies from MIC to MIC.   

This combination of shareholder funds and bank loans is then lent by the MIC to borrowers in turn. Collectively, the agreements of these borrowers to repay the MIC, together with the real estate that serves as these agreements’ collateral, compose the MIC’s mortgage portfolio. When the borrowers make their mortgage payments, any associated fees and interest are cycled back into the fund. This allows the MIC to pay shareholders their dividends, and if the MIC was themselves a borrower, the banks their interest.  

Regulatory Requirements  

MICs are subject to regulatory requirements and oversight, ensuring compliance with securities laws and investor protection. In Canada, MICs have been commonly used for real estate investment since 1985, when they were created as a result of Section 130.1 of the Income Tax Act. This federal statute allows investors to invest in a pool of mortgages.  

In Ontario, the Ontario Securities Commission is the regulatory body responsible for the management and operation of MICs. The Income Tax Act requires mortgage investment corporations to distribute 100% of net income, as verified by independent audit, to shareholders by way of dividends. Typically, a Board of Directors also provides additional strategic oversight.  

Choosing the Right MIC  

Choosing which MIC is right for you is not as simple as who has the highest Return on Investment (ROI). It’s important for investors considering a MIC to carefully assess a corporation’s portfolio composition, track record, and mortgage underwriting process. To learn more, check out our “Selecting The Right Mortgage Investment Corporation” blog post. Make sure to assess your own overall risk profile before choosing to invest in a MIC. This could involve consulting with a financial advisor or professional to understand the specific details and risks associated with a particular company.  

About Magenta  

Since 1994, our goal at Magenta has been to empower our investors to build for their tomorrows and achieve peace of mind. Magenta has delivered our investors strong returns and reliable income while safeguarding capital by applying a risk-mitigated portfolio strategy. We hand-pick our portfolio of residential, primarily first mortgages located exclusively in carefully selected Ontario markets.  

Investing with Magenta offers:  

• Regular income  
• Liquidity  
• Flexibility  

Our team of experts will work with you every step of the way to keep you informed and assist you with investment information so you can determine what best suits your needs.  

Like this blog? For more content like this, click here.  

Selecting the Right Mortgage Investment Corporation 

Early on in your journey into alternative investment options, you likely came across the term Mortgage Investment Corporation (MIC). MICs have entered the spotlight in recent years as a key piece in both the wealth accumulation and the wealth preservation strategies of a variety of investors. This surge in popularity can be credited to the many advantages this investment format has to offer, such as reduced risk through diversification, as well as strong and reliable rates of return. 

Choosing which MIC is right for you is not as simple as who has the highest Return on Investment (ROI).  

Here are five factors to consider when deciding to invest in a MIC:  

1. Liquidity 

Read the subscription agreement closely to see how quickly you can withdraw your investment.  No one wants to be in a situation where they need access to capital but are stuck in a long waiting period to withdraw an investment- and some MICs will only allow redemptions once per year.  

2. Consistency 

Ask for information on the past 5-10 years’ actual ROI vs. target ROI.  Not only will this give you a sense of how accurate the MIC is at estimating ROI, but it also indicates if the MIC can consistently meet or exceed target ROIs. While macroeconomic factors such as the Bank of Canada rate directly affect MIC ROIs, it’s still vital to look for trends in the data to determine the growth trajectory of a MIC.  

3. Risk 

Learn which housing markets you are investing in and what types of mortgages your money is financing.  The specific housing markets and types of mortgages that compose a MIC’s portfolio, whether urban or rural, first mortgage loans or second mortgage loans, are important factors that go into how a MIC determines interest rates and subsequently the potential pitfalls associated with an investment.  You should find a MIC whose acceptable level of risk matches your own.   

4. Reward 

Ask when and how dividends are distributed, especially if you plan to reinvest the dividend in the MIC, as the investment is compounded based on a predetermined schedule. Not all MICs issue dividends on the same schedule, some issue monthly, some quarterly, and others annually.  

5. Communication

Prudent investors keep tabs on their investments, and prudent MICs know that the best questions are the ones shareholders shouldn’t have to ask. Check to see not only that the MIC reports with clarity and regularity, but that they can handle ad hoc requests for information. You never know when you’ll need to be able to access relevant details related to your investment at a moment’s notice. Your prospective MIC should have an investor relations manager ready to answer questions, provide additional information, or help you understand the product.  

Investing with Magenta 

Since 1994, our goal at Magenta has been to empower our investors to build for their tomorrows and achieve peace of mind. Magenta has delivered strong returns and reliable income to our investors while safeguarding capital by applying a risk-mitigated portfolio strategy. The portfolio is constructed of residential, primarily first mortgages located exclusively in carefully selected Ontario markets. 

Investing with Magenta offers: 

• Flexibility 
• Liquidity 
• Regular income 

For more information about investing with Magenta, click here. 

Merry and Bright Wishes This Holiday Season

The month of December brings about the holiday season, which is marked by the celebration of numerous holidays around the world. These holidays are a time of joy, giving, celebration, family, and festivity. At Magenta, we have a lot to celebrate:

• Shining a light on women in mortgages;
• Viva Magenta as Pantone’s 2023 Colour of the Year; and
• that fact we are embarking on our 30th year in building better tomorrows.

As we reflect on a prosperous year and look forward to the new year, we want to take a moment to wish you a Merry & Bright holiday season!

May Your Holiday Season be Merry & Bright

During the winter months when the days are at their shortest, people all around the world find solace in light. In countless traditions, gatherings, and joyous celebrations, light serves as a powerful symbol of hope, positivity, and warmth. Religious observances such as Diwali, Hanukkah, Christmas, and Kwanzaa use light to symbolize important virtues like goodness, divine energy, knowledge, and wisdom. For these celebrations, the use of light can also hold deeper significance such as the symbolization of historical events. To learn more about the history of light during the holiday season, please click here.

As daylight savings time comes to an end in Canada, we embrace the opportunity to brighten our homes with displays of light and invite people to gather together and be merry.

At Magenta, we wish you a Merry & Bright holiday season as the very words “merry” and “bright” perfectly capture the essence of this time of year. “Merry” signifies cheerfulness and liveliness, while “bright” symbolizes the abundant light that surrounds us all during the holidays.

Holiday office closures

Please note that Magenta’s offices will be closed at 5 PM on Friday, December 22 until Monday, January 1, 2024. Additionally, our Investor Relations team will be out of office starting December 25, 2023, to January 1, 2024. Our offices will reopen on Tuesday, January 2, 2024.

We’ll continue to conduct essential business functions during this time and will do our best to reply to any urgent requests. However, please note that our ability to help will be impacted by holiday closures at banks, law offices, and other related businesses.

If you have any questions about how a specific file could be affected, please call us at (613) 230- 5014 or email [email protected].

Payment change requests

If you need to change to a payment scheduled between December 29, 2023, and January 3, 2024, please let us know immediately. The deadline to make payment changes or deferrals is 4 pm on Thursday, December 21, 2023. Banks require three business days to stop or alter a payment, so we cannot accommodate requests made after this time.

If you have any questions about your upcoming payment, please call us at (613) 230-5014 or email [email protected].

Happy Holidays!

The Magenta team wishes you a merry holiday season and a bright new year. We’re grateful for your continued support and look forward to working with you in the years to come.

Three decades of carefree summers for our investors

A 29-year track record of reliable income and strong returns.*

Summer has begun! Airlines are booked for family vacations abroad while the beaches here in Ontario will host crowds of people. Cottages and campsites will see loved ones enjoying outdoor sports, campfires, and quality time. That’s what summer is all about – resetting, clearing our heads and choosing how we want to spend our valuable time and energy – whether that’s through self-care or making memories with loved ones.

But how do we achieve a carefree summer in a world where we are overly scheduled and carrying the mental load of current events, money, and more specifically, investments? We know we should build for our future and our children’s futures, and that pressure can be stressful…but it doesn’t have to be.

Since 1994, our goal at Magenta has been to empower our investors to build for their tomorrows and achieve peace of mind by applying a conservative portfolio strategy to deliver reliable income and strong returns. As one of Canada’s largest and most established MICs, we have maintained our strong track record by financing quality residential real estate in carefully selected Ontario markets.

Continue reading for more information on our performance history, portfolio strategy, examples of financing and fund details, as well as contact information to start investing today!

Investing with Magenta offers:

• Regular income
• Liquidity
• Flexibility

Performance History

To learn more about investing with Magenta, e-mail [email protected].

Are you an Investment Advisor? Click here for more information.

How We Manage Our Portfolio

We have a risk-mitigated portfolio strategy. This means we know our markets intimately and we assess our borrowers and their homes thoroughly. We acquired this knowledge over three decades and evolved to become industry experts, assuring you and your family peace of mind.

• Stable Ontario markets
  We lend exclusively in Ontario with a focus on areas with a large public-sector workforce. Ottawa, Kitchener, Guelph, London and Kingston make up most of the geographical areas in the portfolio.
• Quality residential real estate
  Magenta mortgages are secured by highly marketable, quality residential real estate with a heavy overweighting of first mortgages secured by owner-occupied single-family homes.
• Short-term lending
  Typically, our borrowers sign for a one-year mortgage term. A one-year term allows for regular turnover, generating application and renewal fees. It also allows our rates to stay tied to prime so that Magenta returns are closely linked to market interest rates.
• Industry expertise
  We have a 29-year track record of delivering reliable and consistent returns.

Portfolio Composition:

Examples of Financing

Our Investor Relations Team

Our Investor Relations Team has combined experience of over 60 years in the mortgage and financial industry. Our collective experience includes strategic oversight, operational risk management and building and maintaining client relationships. We pride ourselves on our excellent customer service and operational excellence. This means you have easy access to not only speak with someone but receive best-in-class service and communication that reassures you every step of the way – from the moment you connect with us to the moment you feel like you’ve finally built for your tomorrow.

Big or small, every investment is a step toward your world of possibility. There is no better time to invest in Magenta than now. After all, 2023 is the year of Magenta.

To find out more on how you can invest in Magenta reach out to Allison Daines Allen at [email protected].

Allison Daines-Allen
Manager, Investor Relations
[email protected]
Direct: 613-699-4939
Toll-free: 1-888-267-1744

Investment Advisors:  

Click here for our subscription forms.

To learn more or speak with someone at Magenta reach out to Greg Sinclair or Daniel Werner:

Greg Sinclair
COO
[email protected]
Direct: (613) 699 4963
Toll-free: 1-888-267-1744

Daniel Werner
Account Manager, Investment Advisors
[email protected]
Direct: (613) 699 6485
Toll-free: 1-888-267-1744

*This article does not constitute an offer to sell securities and should be read in conjunction with the offering memorandum dated March 28th, 2023, available for download at this link or from our office. Investors should read the offering memorandum before investing. The foregoing historical performance achieved by the Corporation is not a guarantee of future results.

Open Term Versus Closed Term Mortgages: Know What Works for You

There are many things to consider when your mortgage is coming up for renewal. As the maturity date approaches, your renewal paperwork will arrive and you will probably be offered the option of opting for either an open term or a closed term.

Confused as to what the difference between the two might be?  Here is a breakdown of what each type of term involves:

Open terms
Open terms always have a higher interest rate as it expected that the mortgage will be paid out on or before the maturity date.  30 days’ written notice is generally required in the event of full or partial pre-payment.  A bonus is calculated on a per diem (per day) interest basis will apply in the event that written notice of less than 30 days is provided (e.g. 15 days’ written notice –  bonus equivalent to 15 days’ interest).  Notice must be in the form of a written request from the mortgagor’s solicitor, a title insurance company, or a financial institution, specifying the amount and date of the prepayment.

Closed terms
Closed terms receive a lower interest rate, but it is expected the mortgage will remain until maturity. In the event of pre-payment in whole or in part prior to the maturity date, a pre-payment penalty equivalent to the greater of: a) three months’ interest at the interest rate prescribed in the renewal agreement; or b) the interest rate differential based on the difference between the interest rate prescribed in the renewal agreement and the lender’s posted interest rate for a closed term that is the next shortest to the remaining term of the mortgage will apply. The pre-payment penalty will be calculated on the principal amount to be prepaid.

Choose the type of term that works best for you and return the completed paperwork to your lender. It’s a good idea to make note of the first date of your new payment and the new amount that will be debited from your account.

About Magenta Capital Corporation
Established in 1994, Magenta Capital Corporation (MCC) is one of Canada’s oldest and largest Mortgage Investment Corporation (MIC) managers.  MCC sources, underwrites and manages a portfolio of primarily residential first mortgages, secured by properties located in Eastern and Southwestern Ontario, two of the strongest, most recession resistant real estate markets in the country. MCC has a 24-year track record of generating superior returns for the shareholders of Magenta Group MICs.  MCC exercises oversight responsibility for the Magenta Group MICs in its capacity as General Partner of three limited partnerships, each of which is wholly owned by one of the MICs.

For more information, call us at 888-267-1744 or  visit Magentainvestment.ca.

The Mortgage Renewal Process: What to Expect During the Mortgage Renewal Process

The maturity date of your mortgage is fast approaching. The maturity of your mortgage gives you an opportunity to review your financial situation and make some decisions based on your financial goals and current situation.

If you discussed an exit strategy with your mortgage broker, you may be preparing to refinance with a new lender at a lower rate. If it suits your needs to renew your current mortgage, here are a few things to keep in mind both before and during the process:

Here are some tips to prepare for your renewal.

1. Ensure your account is current: If your mortgage account has fallen behind, make arrangements to bring it back into good standing. Work with your lender to find a solution that suits everyone.  Small changes, such as moving your monthly payment to a new day, can make a difference.

2. Keep your home insurance in good standing: If your insurer has changed since you originally obtained your mortgage, make sure you let your lender know!

3. Keep the home in a good state of repair with no deferred maintenance: Don’t put off those home maintenance projects, big or small. Touch up the paint. Mow the lawn. Make sure the roof, furnace, and electrical wiring are in good repair.

What to expect at renewal.

1. Renewal Options: Your renewal options will be sent to you in advance of the maturity date. Review the options you have been offered. You may wish to discuss your options with your bank or mortgage broker.

2. ‘Business-for-Self’ Income: If you are ‘business for self’ or have ownership in a business, you may be asked to provide confirmation that HST and Source Deductions are being remitted to Revenue Canada.

3. Second Mortgages: If you have a second mortgage you may be asked to provide a current first mortgage statement. Most lenders will either send these out annually, or provide a way for you to access the information on their website or via online banking.

4. Income Verification: You may be asked for updated income verification. Gather or print your two most recent pay stubs, just in case you need them.

5. Appraisals: You may be asked for a new home appraisal. Appraisals always make note of any instances of deferred maintenance that are noted during the inspection. This is why keeping on top of projects around your home is so important.

Following these tips can ensure your mortgage renewal goes as smoothly as possible.

About Magenta Capital Corporation
Established in 1994, Magenta Capital Corporation (MCC) is one of Canada’s oldest and largest Mortgage Investment Corporation (MIC) managers.  MCC sources, underwrites and manages a portfolio of primarily residential first mortgages, secured by properties located in Eastern and Southwestern Ontario, two of the strongest, most recession resistant real estate markets in the country. MCC has a 24-year track record of generating superior returns for the shareholders of Magenta Group MICs.  MCC exercises oversight responsibility for the Magenta Group MICs in its capacity as General Partner of three limited partnerships, each of which is wholly owned by one of the MICs.

For more information, call us at 888-267-1744 or  visit Magentainvestment.ca.