The challenge

Giorgio and Amalia wanted to refinance their existing property to provide a down payment to their daughter to help her buy her first home. However, as Business for Self applicants, they struggled to meet approval criteria for a refinance with their current financial institution.

Their backstory

Homeowners for more than 25 years and self-employed for more than 10, Giorgio and Amalia have excellent credit and have also shown themselves to be good savers who control and manage their credit well. 

Our view

Our Business for Self-Stated Income Program can assist in qualifying this applicant type. While Giorgio and Amalia could not prove their income by conventional methods, we were satisfied that they make sufficient income. We considered their long tenure as business owners, their accumulated assets, clean credit and active cashflow, as seen in their business account. As lenders, we were confident in their ability to meet this additional financial commitment. 

Required documentation that we review as part of our assessment includes:

• Proof of business ownership (at least two years)
• Six months of business account history to support required cashflow
• Most recent Canada Revenue Agency statement indicating no taxes owing

Approval details

• LTV: 75%
• Amortization: 30 years
• GDS/TDS: 22/44