Purpose of Funds
• Purchase, Refinance (1-4 units non-owner occupied).
• Equity Take-out: Maximum $200,000.
• Not available on Purchase / Refinance Plus Improvements, New to Canada or Stated Income Programs.
• Maximum 80% Mortgage.
• Minimum mortgage amount $60,000.
• Maximum property value $750,000 (Up to $1,000,000 in Greater Toronto / Vancouver Area).
• Minimum property value $75,000.
• 5 Year Fixed Term.
• Minimum 10 years.
• Maximum 30 years.
• Resale or new construction (single advance).
• Restricted to residential units.
• Readily marketable residential dwellings, located in markets with demonstrated ongoing re-sale demand.
• Ineligible property types: time-share interests, vacation homes, commercial zoning, rooming/ housing quarter share, shared ownership rental pools.
• Must meet lending guidelines.
• Borrower and subject property must be located in the same province.
• Maximum 4 properties in the borrower’s portfolio.
• Maximum TDS 40%.
• Recommended credit score – Minimum 680.
• Borrowers must reflect strong credit worthiness, no prior bankruptcy.
• Primary borrower is required to have a min. of 2 years established credit with a min. of 2+ trades.
• Down payment from borrower’s own resources. Gifted down payment not permitted.
• Borrower must currently own existing principle residence.
• Documented verification of net worth $100,000.
Rental Income Confirmation
• Rental Income must be confirmed with at least one of the following documents :
• T1 Generals, Lease agreements, Bank Statements showing a 12-month history confirming rental income has been received. (If not available, Fair Market Rents may be considered on exception upon disclosure.)
• 50% of the gross annual rental income may be added to borrower’s gross annual income.
• Full appraisal required WITH fair market rents when LTV <75%.
• Property must meet lender standards.
• No insurance premium at LTV <75%.
• Insurance premium paid by borrower only at 75.01-80% LTV, no appraisal required.
Amortization LTV Ratio Single Premium Top-Up Premium
25 years 75.01%-80% 2.50% 3.75%
*Eligible for a 30 year amortization (subject to a 0.20% premium surcharge).