NEW TOTAL NET WORTH PROGRAM

This program is designed to provide additional mortgage amount to customers with moderate incomes who have a significant amount of verifiable liquid assets and strong credit scores. 

Eligible for Purchases, Refinance or Switch/Transfers

How does it work?

Borrower must have $1 in liquid asset for every $1 in mortgage needed above their standard qualified mortgage amount. 

For example, if a customer qualifies for a $400,000 mortgage using standard debt servicing ratios but requires a mortgage of $950,000. They must have verified liquid assets of $550,000 in addition to their down payment.

There is no Debt Service Ratio calculated if customer puts 35% down (65% Loan-to-Value).

For 20% down payment (80% LTV), the Debt Service Ratio can be pushed to 60% (from standard max 44%). 

What are the requirements?

▪ Minimum liquid assets of $250,000 such as Canadian Stocks, Bonds, Mutual Funds, GIC, TFSA, ESOP and RRSP (discounted by 30% withholding taxes). Note Locked-In accounts are not considered eligible assets.

▪ 12 months history of ownership to show evidence the funds are on deposit at a Canadian Financial Institution.

▪ Equity in existing properties being sold with a firm purchase & sale agreement are eligible as liquid asset.

Eligible Properties

▪ Primary Residence

▪ Secondary Residence / Vacation Property

▪ Rental Properties (Maximum of five rental properties

per individual, including those financed by other

Financial Institutions.)