With B-21 set to go into effect soon, Canada Guaranty has released new guidelines for its self-employed program; but brokers have nothing to worry about, according to one industry player.
“These are not unreasonable requests; they are standards I have been applying to applicants for several years right up front to help filter where a file will go,” Dustan Woodhouse of Dominion Lending Centres told MortgageBrokerNews.ca. “Clearly stating an applicant’s income at a number greater than the gross revenues of their business is problematic. Even the most ‘overly-optimistic’ of applicants can understand that this would defy logic.”
Canada Guaranty released new guidelines for its Low Doc Advantage program for self-employed Canadians Friday.
The following information must be included in the submission notes of the application, for each self-employed borrower: •Income amount confirmed by line 150 on the most recent NOA.
•Gross revenue of the borrower’s business.
•Type of business being owned and operated (e.g. landscaping, bookkeeping, etc.).
•Ownership structure (e.g. sole proprietor) and the percentage of ownership.
Brokers waited with bated breath prior to the release of OSFI’s latest guideline changes, but breathed a sigh of relief when the draft was eventually released.
The changes were considered minor, especially when compared to the prior-released B-20 guidelines.
And with this first round of changes announced by one lender, it seems business will continue as usual for brokers.
“It has been my experience that the majority of lenders are currently underwriting these applications to these standards as things stand,” Woodhouse said. “And have been for some time.”
MBN
About Me
- Jackie Goodlet, Broker
- GTA, Ontario, Canada
- A New Sales Record Has Been Achieved By The Jackie Goodlet Team Who Work Out Of The Whitby Office And Specializes In High End Resale And New Home Sales. According To Broker Dave Pearce The Jackie Goodlet Team Wrote More Transactions Than Anyone Else In The 30 Year History Of Our Firm. Their 255 Transactions Had A Total Volume Of More Than $185,000,000 (185 Million). With Over 25 Years Experience In The Business The Jackie Goodlet Team Has Acquired A Wealth Of Knowledge In All Areas Of Real Estate Including Resale, New Builds, Cottages, Lease, Condos, Vacant Land, Investment And Commercial Properties. With Exceptional Negotiating Skills We Are Confident We Can Save You Time And Money On All Your Real Estate Endeavours. We Look Forward To Hearing From You And Your Referrals Are Always Welcome And Rewarded!
No comments:
Post a Comment