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ING DIRECT has enhanced our mortgage options for those Business for Self applicants who have difficulty meeting traditional
income guidelines. Now your clients who have a good credit history and are self-employed, can access up to 90% LTV on purchases
& Ports, and up to 85% for refinances with minimal income verification.
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High-Ratio unmortgage® for the self-employed (Stated Income)
Available for
- Owner occupied principal residence, maximum 2 units
- Purchase & Ports
- Refinance
- ETO, limited to $200,000
- Assumptions
Maximum mortgage amount
- Metro Toronto, Metro Calgary and Metro Vancouver: $750,000.
- Rest of Canada: $600,000.
Terms
- Available on all fixed and variable rate terms
- For terms less than 5 years and VRM, the qualifying rate is greater of the Bank of Canada benchmark rate or the contract rate;
for terms of 5 years fix or more, the contract rate is used.
Amortization
Restrictions
- Non-occupant, co-borrowers or guarantors not permitted
- Gifted down payments not permitted
GDS & TDS
- Beacon Less then 680: 35%/42%
- Beacon 680 or more: n/a / 44%
Additional requirements for borrower qualification:
- The income reported by the borrower must be reasonable based on the industry, length of operation and type of business.
- Strong credit and credit score with minimum 2 trades with at least two years history. No previous bankruptcies
- No mortgage, installment or revolving credit delinquencies appearing on the credit bureau in the past 12 months.
- Maximum one Genworth or insured Alt-A mortgage.
- Borrowers with commission income are ineligible
Requirements
- Recent Notice of Assessment to confirm no income tax arrears.
- Meet TDS and GDS requirements on reasonable stated income.
- Self-employed for 2 years or more confirmed by any 1 of the following written third party documents:
- Business License.
- GST/HST Return Summary.
- T1 Generals with statement of business activities for 2 years (must be prepared by an arm's length third-party).
- Audited Financial Statement for the last 2 years, must be prepared and signed by a Certified Accountant.
- Personal Credit Report.*
- Articles of incorporation.*
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Premiums
| Loan-to-Value Ratio
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Bureau Scores |
Purchase |
Refinance |
Top Up
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| 85.01% to 90% |
650 |
4.75% |
N/A |
7.00% |
| 80.01% to 85% |
620 |
2.90% |
2.90% |
5.50% |
| 75.01% to 80% |
620 |
1.64% |
1.64% |
3.85% |
| 65.01% to 75% |
620 |
1.00% |
1.00% |
2.60% |
| 65.01% and below |
620 |
0.80% |
0.80% |
1.50% |
The above terms, rates and conditions are subject to change without notice. All residential mortgage features apply.
* Documents accepted for applicants who are incorporated.
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