Toronto Home Equity Mortgage
“Here’s The Best Way To Get The Best Rates and Terms on Your Toronto Home Equity Mortgage”
First of all, a home equity mortgage is a mortgage program that is designed primarily for self employed individuals who may not qualify for a standard mortgage due to the way they report annual income.
Most mortgage programs qualify repayment by some combination of your wage stub, annual T4 slip, letter of employment, and annual notice of assessment from the Canada Revenue Agency.
With self employed individuals, there can be significantly more flexibility in how and when they are reporting their annual income as well as their allowable expense deductions, causing the above income verification sources to not be sufficient for a bank or mortgage lender’s repayment assessment.
This is where the home equity mortgage programs come into play. Under these programs, provided you have at least 75% of the purchaser price to put down as a down payment, banks and other institutional mortgage lenders will allow you to declare what your annual income is and may even require you to sign a sworn affidavit to that effect in front of a lawyer or notary.
Different programs have different qualifications for the home equity mortgages they support such as the number of years self employed, proof date business or corporation was registered, proof of self employed earnings from arm’s length customers, and so on.
Applicants are still going to have to qualify in all other respects in a similar fashion to a wage earner. This will include an acceptable credit score and credit profile.
And while there are several of these programs around, mortgage lenders are always changing policies, terms, and rates to best suit their portfolio and overall risk management requirements.
As a result, it can be hard to figure out which Toronto home equity mortgage is going to be the best fit for you and your family.
The best approach is to work with an area mortgage broker that works with this type of program on a regular basis and keeps up to date with the changes made by the lenders providing services to this segment of the market.
Mortgage brokers also tend to develop direct relationships with the mortgage lenders, providing them with a stronger voice to properly position your application which would not be possible for just an application at larger. And because brokers do not have any direct affiliations with mortgage providers, they are free to shop the mortgage market for the best possible deal that is available to you at a given point in time.
About the Author Joe Walsh
I'm a Toronto Mortgage Broker that arranges mortgage solutions on residential and commercial real estate property. With over 30 years of mortgage financing experience, I'm able to quickly assess your financing requirements and provide relevant solutions for your immediate consideration. Joe Walsh Google+ YouTube Channel