Those with imperfect qualifications but 30% equity now have a new mortgage to choose from.

TD Financing Services has just expanded the roll-out of its “Equity Key” product.

The Equity Key, which has been in pilot for a few months, offers approvals with stated income up to 70% LTV.

Self-employed, commissioned or salaried income are welcomed. No NOA or other income documentation is required. (A basic “reasonability” test is applied to all stated incomes, however).

Some of the niches for this product include those who are newly self-employed (no BFS verification is required), recently discharged from bankruptcy and/or rebuilding credit.

Second mortgages are permitted behind the Equity Key product to 90% LTV.

As with its regular products, TDFS’s unique “5-key” underwriting system applies to the Equity Key mortgage. Underwriting should be a bit more lenient, however, due to the product’s lower LTV.

Rob McLister, CMT

Last modified: April 25, 2014