In 2018 a lot of clients that filed income, as business for self, and showed lower personal income but had strong business financials were susceptible to potentially higher mortgage interest rates without access to programs like the one described below - having to use their net personal income to qualify for a residential mortgage. In 2019, we have introduced back - a mortgage for clients that are business for self and we have done this through the traditional lending channels, obtaining AAA pricing!
This mortgage program allows us to use a companies net income after taxes (NIAT) to bring debt servicing in line. In 2018, we had to use the clients 2 year T1 General and NOA to debt service and not consider the business income. This method allows clients that are filling lower personal income a way to leverage their business to obtain the mortgage.
Program highlights:
-Must be permanent resident, filing taxes in Canada
-Business registration must be in Canada
-All shareholders of the company must be on the mortgage
-Must submit 2 year T1 General and Notice of Assessment
-Must submit 2 year accountant prepared financial statements
-Must provide articles of incorporation or corporate search
-Must address
-What company does?
-What industry company is in?
-How long the company has been in business?
We have had a lot of success introducing this product to our customers in Oakville and now sharing throughout our entire network.