Tuesday, January 31, 2017

RESL Non-Resident & Non-Permanent Resident Borrowers

Non-Resident Borrowers
Branch Submission of Applications
  • Provide borrowers current address from their country of residence in Comments to enable credit investigation.
  • All applications must indicate Owner Occupied = N, and Rental = Y, or be submitted as Recreational Properties.
  • The Non-Resident indicator must be selected on the Product Selection screen.
Non-Resident Policy
  • Applicants under these guidelines do not reside in Canada.
  • Maximum exposure of 2 properties (financed with TD) per non-resident investor.
Eligible Products
  • Conventional Mortgages
  • All Fixed Rate and VIRMs
Ineligible Products
  • TD Home Equity FlexLine (referred to as FlexLine)
  • Cashback mortgages not permitted
Eligible Loan Purposes
  • Purchase or Refinance
  • Single Advance
Ineligible Loan Purposes
  • Progress Advance (construction draw)
  • Purchase Plus Improvements
  • Refinance Plus Improvements
Eligible Properties
  • Rental Properties Up to 4 Units
  • Recreational Properties meeting conventional standards. Refer to Property Criteria.
LTV
  • Maximum 65% LTV subject to Sliding Scale.
  • Exceptions beyond 65% LTV will not be permitted
Appraisal
  • Full appraisal required
Terms/Rates
  • All Fixed terms (6 months - 7 years and 10 year fixed rate)
  • VIRMs (Open and Closed)
  • Pricing: No restriction
Down Payment
  • Required minimum down payment of 35%
Amortization
  • Maximum of 25 years
Customer and Application Verification
  • All aspects of the application must be verified.
  • Standard income confirmation is required, refer to Income Confirmation Guidelines.
Note: Equity Lending cannot be applied to Non-Resident lending.
  • Verification of all assets and credit obligations, including the down payment, is required. Refer to Down Payment.
  • Confirmation and verification of the customer’s identity is required under Know Your Customer, Policy and Process for Authenticating New Customers.
  • Ensure all debts including housing costs from principal residence are input for debt servicing calculations.
Qualifying Debt Servicing Ratios
TDS:
42% where beacon score is < 680
Up to 44% where beacon score is >/= 680
GDS:
35% where beacon score is < 680
Up to 39% where beacon score is >/= 680
Credit Investigation
  • The borrower's complete address from their country of origin will be required by the Credit Centre to enable credit investigation.
  • Satisfactory international credit bureau is required.
  • For Applicants with a US address and social security number, the Credit Centre is required to obtain a copy of the Equifax US credit bureau.
  • For non-US international applicants, the customer(s) can provide ONE of the following from their country of origin showing evidence of credit history and must be forwarded to the credit center for review:
Copy of the credit bureau report OR
6 months of credit card statement from the country of origin demonstrating repayment OR
6 months of bank statement from country of origin that demonstrates loan/mortgage repayment
Note: The bank statements provided should represent a day-to-day operating account demonstrating regular banking activities (i.e. debit patterns such as regular MTG/loan/credit repayments, no NSFs, etc.). Review and understand the customer's credit obligation and payment frequency as this will give you an understanding of the customer's credit worthiness. Be prepared to provide the same rationale in your comments to the credit center.

Branch Submission of Applications
  • Provide borrowers current address from their country of residence in Comments to enable credit investigation.
  • All applications must indicate Owner Occupied = N, and Rental = Y, or be submitted as Recreational Properties.





Temporary (Non-Permanent) Resident Borrowers


Branch Submission of Applications
  • The Non-Permanent Resident indicator must be selected on the Product Selection screen.
Temporary (Non-Permanent) Resident Policy
  • Applicants under these guidelines will typically be employed by established, well-respected companies, who are being re-located to Canada for a specific period of time for work purposes.
Eligible Products
  • Conventional & Insured Mortgages, Fixed Rate and VIRM (Open and Closed)
  • Conventional FlexLines
Eligible Loan Purposes
  • Purchase Only
  • Single Advance
Ineligible Loan Purposes
  • Progress Advance (construction draw)
  • Refinance, Equity-take Out
  • Purchase or Refinance Plus Improvements
Eligible Properties
  • Owner Occupied Properties - Maximum One Unit
  • New Construction and Resale
Ineligible Properties
  • Rental Properties
  • Multi Unit Properties
  • Recreational Properties
Downpayment

  • For Conventional, follow standard down payment guidelines.
Security
  • 1st position Mortgage or FlexLine
LTV
Maximum 80% for Conventional Financing on Mortgages subject to Sliding Scale.
Maximum 65% for conventional FlexLines subject to Sliding Scale
Maximum 90% for Insured Financing
Appraisal
  • Standard conventional appraisal policy applies
Terms/Rates
  • All Fixed terms (6 months - 7 years and 10 year fixed rate)
  • VIRMs (Open and Closed)
  • Standard pricing applies
Amortization
  • Maximum of 25 years
Debt Servicing
  • All debts including housing costs from principal residence are included in the debt servicing calculations.
Maximum GDS/TDS:
35%/42% where beacon score is < 680;
39%/44% where beacon bureau score is >/= 680.
Insurance Premiums
  • Standard CMHC/Genworth fees and premiums apply.
Income Confirmation
  • Branch to confirm income as declared on the application, by letter of employment indicating length of contract in Canada and no probationary period.Note: Equity lending cannot be applied to Non-Permanent Resident lending.
  • Down Payment Minimum of 10% from borrower’s own resources. Refer to Down Payment.
Credit Investigation
  • The borrower's complete address from their country of origin will be required by the Credit Centre to enable credit investigation.
  • Satisfactory international credit bureau is required.
For CMHC insured deals:
  • CMHC will obtain copies of credit bureau.
For Conventional deals:
  • For Applicants with a US address and social security number, the Credit Centre is required to obtain a copy of the Equifax US credit bureau.
  • For non-US international applicants, the customer(s) can provide ONE of the following from their country of origin showing evidence of credit history and must be forwarded to the credit centre for review:
Copy of the credit bureau report OR
6 months of credit card statement from the country of origin demonstrating repayment OR
6 months of bank statement from country of origin that demonstrates loan/mortgage repayment
Note: The bank statements provided should represent a day-to-day operating account demonstrating regular banking activities (i.e. debit patterns such as regular MTG/loan/credit repayments, no NSFs, etc.). Review and understand the customer's credit obligation and payment frequency as this will give you an understanding of the customer's credit worthiness. Be prepared to provide the same rationale in your comments to the credit center.
For Genworth insured deals:
The Credit Centre is required to contact Equifax to obtain a copy of the required credit bureau. The Credit Centre will forward the credit bureau to Genworth, for review for all Genworth insured requests.
Equifax will provide an international credit bureau, however, there may be cases where they are cost-prohibitive or take too long; in such cases, a letter of reference from the financial institution where the customers currently have borrowings will be required.
The Credit Centre will review and verify the validity of all reference letters and forward the letters of reference to the insurers for review for all insured requests.

Borrower Eligibility
Customer must have relocated to Canada within the last 24 months
Customer must be eligible to work in Canada.
Customer must be employed in Canada for a minimum of 3 months Confirmation of valid Canadian Employment Authorization Form (Work Permit form 1442).
Must confirm sale of principal residence in their home country, or be able to carry both properties.
This program is not available for diplomats or any other foreign political parties that do not pay income tax in Canada.
All other standard borrower eligibility criteria apply.


Branch Submission of Applications
Provide borrowers complete address from their country of origin in Comments to enable credit investigation.
Customers may be required to provide a letter of reference from the financial institution where they currently have borrowings depending on the availability of an international credit bureau report.


Policy as at January 23, 2017 – subject to change.

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