CURRENT MORTGAGE RATES Last updated:  March 10, 2010 Term Bank Rate Our Rate 6 month 4.60% 4.60% 1 year 3.60% 2.49% 2 years 3.75% 2.90% 3 years 4.15% 3.40% 4 years 5.04% 3.69% 5 years 5.38% 3.69% 7 years 6.60% 4.95% 10 years 6.70% 5.20% 1 year open 6.70% 5.20% Prime: 2.25% * rates subject to change without notice    .

"As a small business owner, obtaining a mortgage for a home can be challenging through conventional means, especially for a second home/recreational property.  Karen's tenacity for success and clear understanding of our needs helped immensely, to address our overall requirements and goals.  We have already recommended Karen to others.  Thanks Karen!"  - Sean & Connie, Calgary

"Glen and I have been customers of Karen's for about 3 years now!  We came across her website when we were searching the internet as we were looking for a banking institution as we wanted to consolidate a few loose ends and use the equity in our home to do so! We are still to this day very happy that we got in touch with Karen.  Her knowledge and work ethic in the financial world is Superior!  She literally walked us step by step through every little detail and made sure that we understood and felt very secure in our financial decisions!  This is definitely one Partnership that Glen and I will never walk away from.  We will remain customers and friends of Karen's well into our future! " Glen and Patty Spearing Red Deer, AB

Self Employed?  Why is it so hard to get approval in Chartered Banks? Do you fall in one of the categories?

• Commissioned Sales People
• Salaried + commission + car allowance
• Salaried + additional unclaimed (unverifiable) income – ie bartenders, waitresses, plumbers, electricians, finishing carpenters etc. (any position where you cannot verify or claim cash that you receive)
• Self – employed as a sole proprietor or a corporation
• Real Estate Agents
• Consultants and contractors

What you make for an income is not always easy to prove to lenders.  Most lenders do not recognize business for self owners making any real cash on paper because they use your income tax returns that show the minimum amount possible. All companies have a tax benefit to use as little income as possible and write off as many expenses which will show that you earned very little income to afford any type of credit. So, the experience can become very frustrating because you know what you bring to the table but you just can’t prove it. Statistics show that nearly 20% of all income earners in Canada are now self employed.  Now there are products for the self employed person who cannot prove their income on paper. Stated income mortgages are ideal for people with a strong credit history who may not be able to verify income in the traditional manner. 

When you are applying for a mortgage with 20% down and you are going with a stated income product you can get this through various lenders.  Genworth also has a Alt A Business for self Mortgage Insurance program.  Typical lending criteria can often exclude borrowers based on their non-traditional income situations.  Their common sense underwriting approach individually evaluates income situations and enable lenders to extend high-ratio purchase or refinanced mortgages to borrowers.

Highlights:

• Up to 95% LTV for purchase transactions
• 90% LTV for Cash-out Refinance
• Amortizations up to 35 years
• Qualifying based on “Stated” Income
• Up to 4 Residential Units

Program Guidelines:

• Purchase, Purchase plus improvement, Secondary home, progress advances, refinances
• 95% LTV – 1 AND 2 UNITS
• 90% LTV – 3 AND 4 UNITS
• Progress Advances ( Maximum 2 units)
• Refinance 1-4 units – max 90% LTV
• All applicants used to qualify must occupy the property
• 680+ Credit Score – GDS no limit/TDS 44%
• 600- 679 Credit Score – GDS 35%/TDS 42%
• Spousal guarantors acceptable
• Down payment must come from own resources
• 2 years – BFS tenure recommended; however, Genworth will consider borrowers with less than 2 years depending on the length and type of pervious employment
• Borrowers must have minimum 2 year BFS tenure if purchasing a secondary home
• Documentation required for income to be stated by the borrower on a signed mortgage application or stated income declaration. One form of written third party documentation confirming self – employment.

• Articles of incorporation
• Business License
• T1 Generals with statement of business activities
• Business credit report
• GST Return Summary
• Audited Financial Statement
• When a 2nd borrower is salaried: Written confirmation of income in the form of a job letter or NOA.
  
  
• No Credit delinquencies in the past 12 months, no previous bankruptcy, no defaults on residential mortgages in the past 7 years, Genworth will average the scores pulled from both credit bureaus for each borrower.
• Lenders to confirm no tax arrears as per one of the following: 
• Most recent Notice of Assessment (NOA) or A signed Affidavit by the borrower(s)

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