Scotiabank

Lender Updates

Recent Changes by the lender

Update From Scotia Mortgage Authority

Dear Brokers:

I hope this message finds you and your families safe and healthy. It’s been an unprecedented time for us all, and we are hopeful that we will start to see a return to normalcy in the coming weeks.

Despite the challenges we are all currently facing, our broker partnerships remain as strong as ever. I want to say a heartfelt thank you to each of you, and take an opportunity to provide an update on what has been happening with Scotia Mortgage Authority since my last note to you.

We will now accept e-signatures on our PAD form. We are excited to announce that effective immediately, electronically-signed documents signed through a reputable e-signature provider will be accepted by Scotia Mortgage Authority if our e-signature requirements are met. You can find our requirements for e-signatures on www.scotiamortgageauthority.com.

Your clients can sign their mortgage documents virtually. In recent weeks we introduced a virtual signing process for our Instant Funding Program, in collaboration with our partners at FCT and FNF. Further information on eligibility for this virtual signing process can be found on www.scotiamortgageauthority.com. We also allow solicitors to complete our identity verification requirements through a virtual process, enabling them to have documents signed using video conferencing if this is acceptable under the laws of their jurisdiction.   

We continue to introduce innovative new lending solutions, like our recently expanded StartRight program. Our exciting revamp of this program leverages net worth to provide innovative financing solutions for new-to-Canada clients without established employment or credit history in Canada.1

We have enhanced our lending policies, including accepting the Canadian Child Tax Benefit as an income source. We are pleased to accept up to 15% of a client’s income from the Canadian Child Tax Benefit / Quebec Family Allowance on default-insured applications (some conditions apply). We have also introduced policy enhancements for car allowances and rental income verification. 1 

Further information on all of these initiatives can be found at www.scotiamortgageauthority.com. Please take the time to review the details, terms and conditions of each item, and speak to your BRM/BLM about any questions you may have.

Lastly, I wanted to share a recent Scotiabank Economics report on the Canadian Housing Market (attached), as well as this Investment Executive article about our Housing Market Forecast. I think you will agree there is good reason to be optimistic about what lies ahead.

During difficult times like these, we understand the importance of strong, reliable partnerships. We will continue to be there for you, just as you’ve been there for us. We are confident we will get through this together and emerge even stronger. Thank you for all you do.

Garry Morrison

Vice President

Scotia Mortgage Authority

BNS Economics Housing Note May 2020

Update on using LOC for Down-Payment

Scotiabank will no longer allow clients to borrower from their LOC's for a down payment on rental property purchases. You can borrow from a rental LOC to buy an owner-occupied but not a rental.

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