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No Income Verification" Loans
The 'No Income' Verification mortgage is perfect for those who cannot verify income with traditional documentation such as pay stubs, T4s, or Personal Notices of Assessment tax statements. This type of mortgage is also referred to as a No Doc Loan or Low Doc Loan. It is an excellent choice for people who are self-employed, paid primarily through commissions / contract income, or just don't want the hassles of verifying income. The No Income Verification mortgage can be used to purchase a home or refinance an existing mortgage. Qualifying is typically based upon the income that is declared by the applicant.
Usually an equity position of 90% loan to value (LTV) - same as 10% Down Payment , is the minimum with 75% LTV, or 25% Equity as the preferred situation by most Lenders. The better / higher the equity situation, the more aggressively we can negotiate with alternative Lenders to consider credit or employment situations that they wouldn't normally take into consideration.
There are two echelons of No Income Verification loans :
1) People with Strong Credit:
High LTV (Loan to value)
Up to 90% of the purchase price or 85% of the market price on a refinance.
Almost very best rates offered
Require evidence of business for self (self employment)
These loans are available to customers with very good credit (minimum credit scores of 680 - see our section of Credit Reports ) and strong assets and are made on the assumption that someone with good credit and assets won't risk their credit and assets by applying for a loan they don't think they can manage.
If your situation is different than described above, there are other programs available at slightly higher rates. Call Canada Hometrust to discuss your options: Toll free across Canada
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Underwriting GUIDELINE - PRODUCT FEATURE |
NO DOCS PROGRAM |
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OCCUPANCY REQUIREMENTS |
Owner Occupied |
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PROPERTY TYPES |
No Apt Condo no farms and no mobile homes.
Acreage - Max 5 acres home and garage |
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TERMS AVAILABLE |
3 & 5 year term |
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MAXIMUM LOAN AMOUNT |
$500,000 |
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MINIMUM LOAN AMOUNT |
$50,000 |
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MAX LTV |
90% - purchase
85% - refinance |
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SECONDARY FINANCING |
Allowed (Min 10% from own resources) |
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GIFTED DOWN PAYMENT |
Yes |
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BFS INCOME REQUIREMENT |
Stated income - proof no income tax owing - proof of BFS 2 years |
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PRODUCT SPECIFIC
WHY WE ARE DIFFERENT |
Closed until 3 rd anniversary - 3 months interest on bona fide sale |
2) People with Dented Credit
Low loan to Value (LTV)
Up to 65% of a purchase price or 65% of the market price on a refinance.
Very best rates available
These loans are available only to customers with very good credit (minimum credit scores of 630) and a lot of equity in their home. If you do not have good credit, there are other programs available at higher rates.
People with weak or dented credit
Up to 65% of a purchase price or 75% of the market price on a refinance.
One or two percentage points higher than best rates
These loans are available to customers with dented or poor credit (credit scores less then 630) and a lot of equity in their home.
Low Documentation and / or Stated Income mortgages are becoming more and more popular in North America. Lenders are finally coming to terms with the fact that not everyone who needs a mortgage has excellent credit and 40% as a down payment! We can help match you up with the Lender that has the type of mortgage that fits you needs.
Call or Apply Online, and Canada Hometrust will help you realize your dreams!
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