ALT-A PURCHASE

PRODUCT DESCRIPTION - This program is designed for self-employed borrowers who are unable to provide traditional income verification but have a proven 2-year history of managing their credit and finances responsibly.

IDEAL CLIENT - For borrowers who have been self employed for the past 2 years. Borrowers who have provable business income but low personal income (Line 150 from Notice of Assessment from CRA). Both borrowers who are Incorporated and those who are Sole proprietors can qualify under this program.

MAXIMUM LOAN-TO-VALUE - The maximum Loan-to-Value for this product is 90% on a purchase.

DOWN PAYMENT SOURCES - The down payment must come from own resources and not to be borrowed. The down payment may come from a personal bank account or a business bank account.

SPECIAL CRITERIA - A minimum credit score of 680 is required, must have two trade lines reporting to Equifax for the past 24 months.

ACCEPTABLE INCOME DOCUMENTS

If Sole Proprietor (any two of the following):
- Complete Personal Tax Return for most recent two years filing prepared by an arm's length third party.
- Business License
- GST Return Summary
- In addition to the above, the most recent Personal Notice of Assessment from Canada Revenue Agency is required to confirm line 150 and no income tax arrears.
If a Partnership (any two of the following):
- Complete Personal Tax Return for most recent two years filing prepared by an arm's length third party.
- Business License
- GST Return Summary
- In addition to the above, the most recent Personal Notice of Assessment from Canada Revenue Agency is required to confirm line 150 and no income tax arrears.
If Incorporated:
- Articles of Incorporation
- Complete Personal Tax Return for most recent two years filing prepared by an arm's length third party.
- Business Financial Statements for the past two years, prepared and signed by a C.A..
- In addition to the above, the most recent Personal Notice of Assessment from Canada Revenue Agency is required to confirm line 150 and no income tax arrears.
View the Document Checklist for mortgage purchases.