Monday, September 9, 2013

Business for Self Mortgage Guidelines

Here’s a refresher when dealing with “buyers” that are business for self:

ü  Maximum LTV (loan to value) 90%
ü  Self employed for more than 2 years but less than 3 years
ü  No previous bankruptcy
ü  No tax arrears as per most recent Notice of Assessment (NOA)
ü  Minimum 3 years on Credit Bureau with 3 trade lines.
ü  Beacon Score Requirements (defined by the lowest score from all borrowers average score):   LTV </= 90% - minimum beacon score of 650
ü  Maximum TDS 42% - based on stated income.
** Latest statistics from Bank of Canada indicates that the total mortgage amount is $879 billion in the year to July.

** In its interest rate announcement, the Bank of Canada held the overnight at 1.00% and reiterated its forward looking language. The Bank acknowledged that the rotation in economic growth drivers has not been as quick as many had hoped – a theme that was reinforced by data releases this week (From Td Economics)

Romy Alegria is a Mobile Mortgage Specialist with TD Bank who specializes in Residential and Commercial Real Property Mortgages in the Greater Toronto Area.

Romy Alegria | Manager, MMS | TD Canada Trust
P: 416.278.2540 | F: 1-866.222.5708

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