Mortgage based on Net worth, not income
February 16, 2022 | Posted by: Alex Vinarski
The Net Worth Program is offered to clients who can't show high income, but can show liquid assets and have good credit scores. Any loan amount requested above the qualified loan amount will require $1 in liquid assets for every $1 in mortgage. Borrower must have a minimum of $150,000 in liquid assets.
For example if clients qualify for $150000 mortgage, and they have $250000 in liquid assets, they will get $400000 mortgage.
This program works for purchase and refinancing. Owner occupied, vacation, or rental properties are eligible.
Eligible liquid assets:
Stocks, bonds, savings, TFSA, RESP (capital only), RRSP (discounted by 30% for withholding tax), mutual funds.
Ineligible assets:
Lock-in accounts, foreign assets, equity in property not being sold.
