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.