5 Year ARM Designer - (Adjustable Rate Mortgage)

• Owner-occupied (up to 4 units) and rental properties
• Minimum cash from the client's own resources is 5%
  of property value (for owner occupied single family
  detached.
• Minimum 7.5% for duplex and 10% for
  3 to 4 units with at least 1 unit must be occupied by
  owner).
• Minimum 25% equity for rentals.
• Equity take-outs minimum equity 25%.
  
• Owner-occupied: 95% of property value; 92.5% for duplex
  and 90% for 3 to 4 units with 1 unit occupied
  by owner.
  Apartment condo's up to provincial maximums (see page 6).
  Maximum 75% on rentals.
  For LTV>90%, it must be CMHC insured.
  Property value is determined to be the lesser of the purchase
  price or the appraised value.
  
• Blended payments are made monthly, semi-monthly, bi-weekly, or weekly.
  To calculate accelerated payments, divide monthly payment by 4 for weekly,
  or by 2 for semi-monthly and bi-weekly.
  
• Client must qualify at greater of current 3 year FLM rate or contract rate.
  
• Amortization = Minimum 5 years, Maximum 25 years
  
• GDS: 32 PITH; TDS: 40 PITH (Some degree of flexibility is available)
  
• Client may trigger into one of our fixed rate products without notice or
  bonus. (3 years and greater, rental properties restricted to 3 and
  5 year terms only).
  
• Pay down of the outstanding principal balance by up to 20% per year
  of the original principal balance, on any payment date, without penalty.
  Minimum prepayment of $100. Principal amounts in excess of 20% may
  be made at any time with 2 months bonus. This privilege is non-cumulative.
  
• Client may increase the monthly payment to an amount not less than a 5 year
  amortization or decrease the monthly payment to an amount not exceeding
  original amortization less any payments made. This option is available once
  during any 12 month period following the IAD or anniversary
  thereof.
  
• Loan can be paid out in full or in part upon payment of two months interest penalty.
  
• After the third anniversary, the loan can be paid out in part or in full at anytime
  without notice or bonus.
  
• Mortgage can be assumed by purchaser pending qualification by FirstLine.
  
• Loan to value 75.1% or greater, CMHC Application Fee.
  All conventional full appraisal fees.
  
• Increase and Blend available on the ARM-Designer Mortgage
  with no penalty under the following guidelines:
  a.Minimum increase of $10,000.
  b.Must extend to a new 5 year ARM OR a new 3 year term or greater.
  c.If ARM-Designer is selected as the new term, there is no discount for the
    initial period and interest is charged at at CIBC prime rate minus 0.40%
    for the full term and no rate drop.
  
• Conventional 5 year mortgages are fully portable. Regular underwriting
  guidelines apply to the new property.
  
  
• This mortgage has a floating rate which is adjusted whenever CIBC
  prime rate changes. The interest rate charged per annum is equal to
  CIBC prime rate less 0.5% for the first 6 months from the interest
  adjustment date and less 0.40% for the remainder of the term.
  
  The Principal and Interest payment is re-calculated every time
  CIBC prime rate changes based on the current mortgage rate and then
  remaining amortization period of the mortgage. The initial Principal and
  Interest payment will be set seven (7) days prior to the mortgage advance
  date based on the then CIBC prime rate less 0.50%.

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