Toronto, July 19, 2006:  Need an exit strategy for your building project to help improve your cash flow?  Equitable Trust now offers a take out financing solution that’s both simple and creative – the Easy Out Mortgage for builders and developers.

As part of Equitable Trust’s Builder Inventory Program, the Easy Out Mortgage provides builders with a one time financing product to improve cash flow with the ability to:

• pay out expensive construction financing;
• provide straight equity take outs; and/or
• pay out trades.

“With the Easy Out Mortgage, builders can maximize their capital on a short term basis and also have the flexibility of paying out the mortgage at any time without a penalty.  The Easy Out Mortgage is just that – so easy to get out of and costs so little.  It’s an inexpensive way to discharge a mortgage once a unit sells or obtain partial discharges and you can avoid the costs of breaking a closed term mortgage,” said Caryn Markman, Assistant Vice President, Residential Mortgages, The Equitable Trust Company.

The loan amount will be approved based on an assessment by an appraiser, of the value of the builder’s completed project. The program requires that a property must be 97% or more complete on funding; otherwise holdbacks may apply.

Equitable Trust will offer first mortgage financing up to 70% loan to value on residential real estate.  Secondary financing is permitted behind Equitable Trust’s first mortgage up to 90% loan to value. The competitive interest rate for the Easy Out Mortgage product is prime + 1%, and has interest only payments with a one year fully open term.  The minimum loan size is $100,000.   By choosing Equitable Trust, the builder can select a variety of terms which best suits their needs from fixed or variable rate mortgages to open or closed terms. Equitable Trust will also consider blanket financing with partial discharges or individual mortgages if a builder requires these options. 

In addition, if a builder is unsure of whether they wish to sell a unit within the year and may potentially require discharge flexibility, Equitable Trust has the 1 + 1 Option.  The 1 + 1 Option is a stress free and comfortable working solution for builders to discharge their closed mortgage while at the same time, saving valuable dollars and the costs associated with fully open money.

The Easy Out Mortgage can be applied to: single family homes, high rise or low rise condominiums, lofts, work/live condominiums as well as detached, stacked or condominium townhouses.  Other properties allowed under the program are model homes, sales centres and cottage properties.

“We’ve made the documentation process so straightforward and simple to ensure a quick turnaround for approvals and funding process. Another fantastic benefit of the program is our interest only payment option and low fees that are very attractive to builders and developers alike,“  added Ms. Markman.

For satisfied clients of Equitable Trust, they can earn a cash reward of $500 when they refer a business partner, a builder or a developer to the Easy Out Mortgage program through the Referral Program.   Upon closing of the referred mortgage, a cheque will be mailed directly to the referrer within 30 days. 

To learn more about the Easy Out Mortgage and the Referral Program, builders can visit www.equitabletrust.com and click mortgages on the navigational bar to Single Family Residential.  Under “we specialize in mortgage financing” for Builder Inventory Mortgages, the user can download the Special Builders’ Issue, the Builder Inventory Application and a contact list for Regional Business Managers which also contains the approved appraiser list.

Equitable Trust was founded in 1970, and by following a prudent, results-driven approach, Equitable has become a leader in its primary niches: alternative single family dwelling as well as multi-unit residential mortgage lending.  Equitable’s primary geographic territory is single family dwelling in Ontario.  In 2005, Equitable began to serve the Calgary alternative single family dwellings mortgage lending market.  It also offers Guaranteed Investment Certificates to depositors as a nationally-licensed deposit-taking institution. 

For more information contact:
Susan Carter
Director, Investor Relations and Marketing
The Equitable Trust Company
(416) 513-3502