BROKER / BORROWER

Please note, the LMF serves virtually all of Eastern Ontario from our office in Perth.

One of the principal objects of the LMF at its inception was to facilitate mortgage financing for persons whose needs could not be met through banks and trust companies due to the rigid guidelines imposed by remote and centralized head offices. This is still an important objective of the Fund and, as a result, numerous applications for funding have been referred to it by other financial institutions when they were unable to meet a client’s needs.

In furtherance of this objective, and as a result of our considerable experience in the area we serve, LMF has considerable flexibility when examining mortgage applications whether for first or second security. It accepts and reviews applications for mortgages secured on virtually all types of real property, namely residential (including vacation), rental, commercial, raw and development land including construction loans.

The Fund does not employ fixed or posted interest rates but rather relies on the Management Committee’s review of all applications and its consideration of numerous factors including the fair market value of the property as affected by location and condition, the financial net worth and income of the applicant, a credit report, and any prior history with the Fund. On urban properties the loan to value rate is set at a maximum of 75-80% while the maximum on rural properties is set at 65%. The rate for commercial, rental and construction/builder properties is dependent on location and structure as well the credit-worthiness of the applicant.
An application fee is charged by the Fund on all approved mortgages (payable 14 days prior to funds being advanced) and that fee will not exceed 3% of the approved mortgage amount. All fees charged during the life of the mortgage are fully disclosed to the applicant at the outset and are in line with the fees charged by the major banks. All mortgages are normally pre-payable subject to an interest penalty unless otherwise explicitly stated.