Alt-A Purchase

This program is tailored for self-employed individuals who may not be able to provide traditional income verification but have demonstrated responsible financial and credit management over the past two years.

Borrowers who have been self-employed for at least two years and can prove business income but report lower personal income (Line 150 from their CRA Notice of Assessment) are ideal candidates. Both incorporated business owners and sole proprietors can qualify under this program.

The maximum Loan-to-Value (LTV) for this product is 90% on a purchase. Down payments must come from the borrower’s own resources, either from a personal or business bank account, and cannot be borrowed.

To qualify, applicants must have a minimum credit score of 680 and two trade lines reporting to Equifax over the past 24 months. Depending on the business structure, the required income documentation may vary:

• Sole Proprietor: Any two of the following: complete personal tax returns for the past two years prepared by an arm's length third party, a business license, or a GST return summary. Additionally, the most recent Personal Notice of Assessment from CRA is required to confirm Line 150 and verify no tax arrears.
• Partnership: Similar to sole proprietors, any two of the same documents are required, along with the most recent CRA Notice of Assessment.
• Incorporated: Articles of Incorporation, personal tax returns for the past two years prepared by an arm's length third party, business financial statements for the past two years prepared by a Chartered Accountant, and the latest CRA Notice of Assessment confirming Line 150 and no tax arrears.