We understand a Mortgage commitment is appreciated early in the process. Minimum documents required to offer an equity based commitment are:
Sole Proprietor:
-
- T1 x 2 years including ALL schedules
- NOA – most recent personal
- Business bank history x 3 months
- Explain how the client can service the debt if ratios are high.
- frequently transacting property?
- undeclared income?
- capital stripping?
- gradual paydown of a loan owed to the shareholder from the company?
- The client’s story
Holdco/Opco:
-
- T1 x 2 years including ALL schedules
- T2 x 2 years if income flows from a corporation owned by applicant
- share register for new corps
- NOA – most recent personal
- NOA – most recent corporate if income flows from a corporation owned by applicant
- Explain how the client can service the debt if ratios are high.
- frequently transacting property?
- undeclared income?
- capital stripping?
- loan due to shareholder paying down each year?
- The client’s story
Terms based on borrower and property quality which is primarily illustrated by:
-
-
- Bank history,
- Income verification docs,
- Appraisal.
- Photos –> may save your client the cost of an appraisal.
- Cashflow explanation:
- How will these clients service debts if the usual ratios are high?