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Options for the Self-Employed

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.

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

  • Maximum 30 years

Restrictions

  • Non-occupant, co-borrowers or guarantors not permitted
  • Borrowed down payments are not permitted
  • Minimum 5% down payment from the borrowers own savings. The remainder may be gifted from an immediate family member.

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.
    • CIDREQ (Québec only)
    • Personal Credit Report.*
    • Articles of incorporation.*

In the application notes section please include the following:

  • The latest NOA figure on line 150
  • If there are any taxes owing as stated on the NOA
  • Specific details of the business:
    • Business Name
    • Business address and website address if applicable
    • Details on nature of business
    • Confirm if the business is licensed
    • Number of employees (if any)
    • What methods are used to advertise (if any)
  • If your client is using rental income, please provide the monthly rental income for each property in your notes

Premiums

Loan-to-Value Ratio Bureau Scores Purchase Refinance Top Up
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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