Today I'm gonna talk about one of my favourite qualification guidelines - the High Net Worth mortgage.  This is truly one of those money-talks type of products...money talks as in, the more liquid assets you hold, the more mortgage you can qualify for.

 

This mortgage really comes in handy for those applicants that are short on qualifying income, but instead are flush with liquid assets (i.e. non-registered investments, RRSPs, and cash savings).  Here are some common applicant profiles that are well suited for this program:

• business owners that declare low incomes but have substantial liquid assets (they do qualify, but not for the amount they desire)
• average income earners who ALSO cannot qualify for the amount they desire due to insufficient qualification income, but have substantial liquid assets

Here are the main qualification criteria:

• minimum down payment of 20%-35% (varies with lender)
• in addition to the down payment, the applicant must possess at least $250,000 in liquid assets:
• Eligible Assets: cash, stocks, bonds, RRSP, RRIF, TFSA, funds held inside a personal holding company
• Ineligible Assets: Gifted money, RESPs, funds held inside a operating company, insurance, real estate equity, assets jointly owned/shared with a person not on the application
• 3-12 month history of assets prior to application date (varies with lender)
• al account holders where assets are held must be on the mortgage
• no foreign income or assets can be used
• expect to offer a thorough explanation of how the funds were accumulated and a discussion about how the mortgage payments can be maintained...the lenders will want to know how you can maintain the mortgage payments, they will want to know your game plan

Contact Marko, he's a Mortgage Broker!

604-800-9593 direct Vancouver

403-606-3751 direct Calgary

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