National Bank (NBC) has eliminated its conventional stated-income equity product.
It was a bit of a disappointment when we heard. Brokers never did a ton of deals under this program, but it was always a nice solution for self-employed or retired applicants who needed quick and simple 50%-loan-to-value financing.
Despite now requiring greater proof of income, NBC has kept the “Equity” name. NBC has also tried to offset the changes by increasing its maximum allowable TDS ratio on loan-to-values up to 65% and allowing gross-up of NOA income (see your NBC rep for details). Due to the more stringent income documentation requirements, however, it can no longer be classified as an “equity” product.
For stated income deals above 65% LTV, it’s also possible to do them with NBC on the insured side (using Genworth’s Alt.-A program), but the client must pay the insurance premium.
Sidebar: NBC considers 65% LTV deals up to 75% TDS, possibly higher on exception (if the client's net worth warrants it). The All-in-One maximum LTV has also gone up under this new "Equity" program to 65% (from 60%).
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