Recent Transaction - Net Worth Mortgage Explained $2mil Mortgage

Recent Transaction - Net Worth Mortgage Explained $2mil Mortgage
We recently funded one of the first mortgages under a new Net Worth Mortgage Program.  
Our client had large investments in marketable securities. The client is business for self and had been taking a draw from and investment portfolio held within a corporate account of approximately $180k.
The clients full time job is managing this investment portfolio.  They have the capacity to control their income and pay themselves significantly more, but that doesn't make sense from a tax perspective as $180k/year covers all the families expenses.  The challenge is it doesn't debt service the mortgage they applied for and its too late to change their income as the lenders require a 2 year average income being reported to use in debt servicing calculations.
What we did is apply for a net work mortgage.  We figured out how much their family income can debt service, $500,000 for example and showed the lender marketable securities for the remainder of the loan they applied for which is $1.5mil to obtain approval for $2mil mortgage.  
The net result is a $2mil mortgage, $500k based on debt servicing traditionally, $1.5mil is one dollar in mortgage for one dollar in investable assets which is evident for over a year in marketable securities.
This is a type of mortgage that used to have to go to a non traditional lender paying a premium on rate and costing a set up fee.  In this particular example we obtained best market pricing, no set up fees, a very securitized loan for the lenders and a happy client!
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