Optimum Mortgages

Optimum Cheat Sheet 2020:

We have great rate promos on this year with o/o at 3.69% for a 1 or 2 year with 600 plus credit. Our pricing across the lower baskets as well has dropped as well. We have a great stated income options for owner occupied and rentals that should provide some great options for your clients.

I am sure we all run into deals that just do not get inside ratios due to the stress test. For employed we allow GDS 45-50 and TDS 50 and BFS (stated) this is mitigated ratios 50/55 on a 30 year amortization. There are exceptions to higher based upon strength of the deal.

Some key features for you:

  1. 100% Add back for basement suite income and 80% offset for non-subject (just need lease agreements and 3 months bank statements to confirm deposit)
  2. 100% of child tax credit income can be used
  3. Just Most Recent Year Income no two year average
  4. A common sense approach- we are getting more aggressive on files and I have fought for some nice deals for my partners example 547 beacon 75% LTV 750k mortgage
  5. Credit as low as 500 (higher price) in the mid 5.3% range which is very palatable
  6. Holding Company rentals- A key niche for high net worth clients and those structuring for tax efficiency
  7. Max 8 doors (1 million in house financing) After 4 rentals we want to see income on the T1’s
  8. Consumer Proposals: Max 65% if midterm post max is reviewed up to 80%
  9. CRA Obligations and Over due Property Taxes can be paid from proceeds
  10. Up to an M4 with 1 years past and a good Story
  11. Private Purchase allowed as well as 100% Gifted down payments/ gifted equity
  12. Max ALT Mortgage is $1 million, Homewerks can be higher

*****BFS Stated Income Rentals and Owner Occupied (Purchase and Refinance)*****
Ask your BDM about our ratios for BFS (stated) they are super flexible:
Loan to Value is based upon Market and Property type generally SFD is 80% and Rental is 75% (includes BFS rentals)

Types of Entities we will finance:

  • Sole Proprietor
  • Corporate Entity
  • Commissioned Employee (treated as BFS) this program is fantastic simple and allows for 100% OF GROSS COMMISSIONS and 50/55 ratios
  • Business For Self less than 2 years with industry experience
  • Holding Companies (Rentals)

How to determine BFS income 2 Options:
BFS Simplified

  • Bank statements driven stated income program with 50-55 ratios
  • 100% add back all suites/ 80% offset for non-subject rentals
  • 100% CTC up to 16 years of ago
  • O/O 80% LTV/ Rental 75%
  • Invoices only required for outside of normal deposit behavior
  • No back calculation of Expenses through bank statements
  • Up to 8 rentals with just lease agreements and deposits

BFS Standard

• Line 150 plus one of two options:

  • Gross up 15% (typically only used for Incorporated were the client pays him/herself a salary
  • Capital Cost Allowance uncapped, Home use of Office uncapped, Motor vehicle expense capped at $5,000, and Interest per T1 General uncapped

Our GDS and TDS max is very flexible and can reach up to?
(Call me to find out) I call it Super flex ratios

Commission based Employees: Qualification and Documents
We use Gross Commission Income and 50/55 ratios to qualify (most recent year)

Documents required:

  • Active License (i.e. Realtor license)
  • Letter from Employer to confirm start date, position, and year to date commission earned
  • Previous years T4A

Eligible Property Types:
Rentals and Owner Occupied Refinance and Purchase:
Owner Occupied-is 80% House & Town House 75% for condos
Rentals- House or Townhouse 75% condominiums usually 70%
**variances do apply in certain markets and price points**

Best pricing in the market at 4.89% on a 1 year and 4.99% on a 2 year
80% offset on the subject property with no heat for the calculation
Min beacon is 600
Will look at without an owner occupied on a strong deal
Gifted down allowed for strong deals as well
Max 8 doors and total in house exposure $1 million
No surplus allowed

Non-Conforming 65% basket deals:
This is where common sense lending comes into play. We all see deals that for example just do not quite line up on the ratios or have a strong net worth. For these types of deals, give myself or Jackie a call to discuss. One big benefit here is that your credit score still determines the rate even though we may be operating outside of the normal ratios. The most important part here is to SPEAK to the BDM and we will screen them and run them past our credit team.

Homewerks (A Product) First Position Only:
Line of Credit Product (our version of a Scotia Step

  • Max $750,000 limit exceptions to higher
  • Can be up to 3 tiers max
  • 60bps on the authorized limit (includes the mortgage amount)
  • 39-44 ratios
  • 680 credit (exceptions to lower)

Important notes for this product:
Non-subject rentals owned for more than 1-year need to be on T1’s. Partial ownership income is reduced to 50% in the spreadsheet exceptions can be granted based upon the relationship.