No longer just a solution for alternative borrowers, NPX is now competing in the mainstream market
As the mortgage landscape in Canada has changed over the past 10-plus years, the need for additional options in alternative lending has increased. NPX was formed as an option for new and existing mortgage holders who may not meet the criteria for the MERIX brand and has since gone on to establish itself as a first choice for alternative mortgage solutions, offering unique and competitive products.
NPX provides solutions for non-traditional or self-employed incomes, as well as customers wishing to increase their borrowing power. By being one of the only Canadian finance companies to not stress test customers when qualifying for their mortgage, NPX can now compete with more traditional lenders.
NPX offers excellent rates by allowing customers to qualify for mortgages at the rate-sheet price rather than the stress-test rate. Borrowing power is instantly boosted when qualified on the ‘contract’ rate. Business development directors Eton Lam and Nitin Grover are two of NPX’s resident experts, and their passion for helping customers is clear.
“With interest rates rising and the market shifting towards declining prices, first-time buyers and other buyers are having a tough time qualifying,” Grover says. “So it benefits the client to qualify at contract rate and [have] higher purchasing power with extended ratios.”
NPX doesn’t just help first-time buyers or home movers; those clients whose mortgages were taken out pre-2016 and the stress test are suddenly finding themselves unable to qualify with many mainstream lenders when it comes to refinancing. By taking away the higher stress test rate, homeowners can remortgage with better borrowing power.
NPX has also seen a recent shift in the types of clients seeking its products: while predominantly it has existed as a lender for alternative borrowers, customers who could go down the traditional lender route are now choosing NPX.
“Even though we are an alternative lender, our programs have been welcomed by both prime and alternative customers,” Lam says. “Because of this contract rate qualification, even a lot of customers that could qualify [with] any lender, they’re choosing to use us. The reality is, being able to qualify at the contract rate rather than the stress test boosts borrowing power.”
Grover adds: “The interest rate may keep going up, and it’ll be harder for other banks or alternative lenders to qualify customers. [With our] contract rate, we have an advantage – you’re still qualifying at a lower rate.”
Given the wealth of information available from brokers and other sources today, Lam and Grover explain that customers no longer go to their own banks as the first port of call. Instead, they actively seek out solutions that go above and beyond traditional banking. This is where NPX really shines.
“At NPX we have our business development managers or past underwriters – Eton was a past product manager, and I was an under-writer,” Grover says. “So we have in-depth knowledge of all the policies and procedures.”
Lam continues: “Where we stand out is we have a higher approval rate because everything gets vetted; we do a pre-underwriting ... for the broker. Our business development team experts in NPX policy ensure we make our broker customers aware of what NPX offers. When the deal is presented to us, we can confidently guide our broker customers to approval and deal funded. We are very proud of this.”
While some competitors offer similar single products, NPX has the edge, with three contract rate qualifying products that allow more flexibility of loan terms and types of income accepted.
- XTEND Mortgage (Ontario only)
Borrowers can qualify at contract rate; borrowing potential extends to all income types and a 30-year amortization period.
- EXACT Mortgage
Borrowers can qualify at contract rate to maximize loan amounts, with fee and no-fee options on a five-year term. With set guidelines, there is no grey area in this 30-year amortization product.
- XTEND+ PLUS Mortgage (BC and Ontario only)
Borrowers can qualify at contract rate, with extended amortization up to 40 years and a rent reduction option.
NPX is competing with mainstream lenders in a way that brokers and consumers are taking note of. By offering products that are not stress tested, NPX is no longer just an alternative solution for borrowers unable to take out a mortgage with other lenders; it is also a worthy contender for mainstream customers.
