Equitable Trust’s “One-Two” Mortgage

Equitable Trust has a new product promotion for non-traditional clients in need of a short-term mortgage.

The product is geared to "borrowers who are just slightly outside of the bank’s radar” said a company representative.  “The expectation is that within one to two years such borrowers should qualify at a schedule A bank.”

A large portion of Equitable’s customer base consists of self-employed borrowers.  That's driven primarily by Equitable's BFS-friendly lending policies.

The main guidelines of the One-Two mortgage are as follows:

Rate:  1-year fixed:  3.99%; 2-year fixed:  4.50%
Minimum Credit Score:  600
Maximum LTV:  75% on purchases; 70% on refinances
Property Types:  Owner-occupied single-family residential only (no rentals or condos)
Maximum Loan Amount:  $500,000 unless on exception
Proof of income (Salaried):  Job letter and pay stub
Proof of income (Self-employed):  Self-declared income letter plus proof of BFS for at least six months.
Credit Quality:  Very clean. No R2’s in last two years (one exception is sometimes possible)
Penalty for breaking:  3-months interest or $1000, whichever is higher
Lending Area:  Urban areas of Ontario, Alberta, and Manitoba.
NOAs:  Not required unless used to prove income
Fees:  2% (can be rolled into the mortgage)

Despite the name, Equitable Trust is not a pure equity lender.  It examines every borrower up close to ensure he/she can service their debt.

For more information please contact Equitable Trust or see their helpful mortgage information pages.