Secondary Income Qualifier (SIQ)

Our SIQ Expanded solution is suitable for your clients who earn non-traditionally verified income from sources over and above full time employment earnings.

Overview

Terms

  • Fixed terms of 6 months, 1 - 5 years, 7 and 10 years
  • Open terms of 6 months and 1 year
  • Convertible term of 6 months

Eligible properties

  • Owner-occupied and non owner-occupied
  • 1 - 2 units
  • New construction or existing properties

Payment frequencies

  • Monthly, weekly, bi-weekly, accelerated weekly, accelerated bi-weekly

Pre-payment privileges

  • Increase payments by up to 15% once per calendar year1
  • Pre-pay up to 15% of original principal once per calendar year

Maximum amortization

  • Up to 35 years

Loan amounts

  • $50,000 up to $1,000,000
  • Maximum equity withdrawal: up to $200,000

Documentation requirements

  • Verifiable Income
  • Letter of Attestation of Income
  • Secondary income documentation varies depending on deal specifics
  • The maximum amount of secondary income that can be used for debt servicing purposes is the lesser of:

- 20% of the primary applicant's full time income, and
- the actual secondary income declared in the Letter of Attestation of Income

  • The following income types may be considered as secondary income:

- Part time employment less than two years but greater than six months
- Overtime income less than two years but greater than six months
- Confirmable amount of bonus (less than 2 years) earned in the previous year
- Self-employed income from a non-registered business (e.g., daycare, hairdresser)
- Employed tradesman with occasional side jobs
- Other non-traditional sources of income that are deemed reasonable

Supporting documentation may include but is not limited to:

  • YTD or year-end pay stubs
  • T4s
  • Copy of most recent bank statements
  • Letter of employment confirming income from the employer
  • Copy of contracts or invoices

Note: documentation requirements are assessed on a case by case basis and required when the application is submitted.

complementary solutions

Purchase
Portability
Refinance
Vacation/Secondary Home*
Rental*
 
*For more details refer to the applicable information sheets.

CREDIT GUIDELINES

Min credit score/LTV max2:
580-599 – up to 70%
600-679 – up to 75%
≥ 680 – up to 80%
Max GDS/TDS3:
< 680 – 35%/42%
≥ 680 – 39%/44%
Vacation/Secondary Home*:
≥ 620 – up to 65%
Rental*: ≥ 650 – up to 75%
 
*For more details refer to the applicable information sheets.

VALUE-ADDED FEATURES,
OPTIONS AND ALTERNATIVES

Look Back Rate Guarantee
Up to 35 year amortization

1This pre-payment privilege is non-cumulative and is available after the first anniversary of the mortgage.

2LTV on private purchases assessed case by case.

3Debt service flexibilities are based on the overall assessment of the strength of the overall application. Satisfying the minimum credit score requirement alone does not automatically entitle the borrower to debt service flexibilities. All mortgages are funded by, registered in the name of, administered and serviced by B2B Bank. B2B BANK and BANKING THAT WORKS FOR BROKERS are registered trademarks of B2B Bank.

Overview

Terms

  • Fixed terms of 1 – 5 years

Eligible properties

  • Owner-occupied and non owner-occupied
  • 1 - 2 units
  • New construction or existing properties

Payment frequencies

  • Monthly, weekly, bi-weekly, accelerated weekly, accelerated bi-weekly

Pre-payment privileges

  • Increase payments by up to 15% once per calendar year1
  • Pre-pay up to 15% of original principal once per calendar year

Maximum amortization

  • Up to 35 years
  • BFS Stated < 600: up to 25 years

Loan amounts

  • $50,000 up to $750,000
  •  BFS stated < 600: $50,000 up to $500,000
  •  Maximum equity withdrawal:

≥ 600 – up to $100,000
540-579 – up to $25,000
580-599 – up to $50,000


Documentation requirements

  • Verifiable Income
  • Letter of Attestation of Income
  • Secondary income documentation varies depending on deal specifics
  • The maximum amount of secondary income that can be used for debt servicing purposes is the lesser of:

- 20% of the primary applicant's full time income, and
- the actual secondary income declared in the Letter of Attestation of Income

  • The following income types may be considered as secondary income:

- Part time employment less than two years but greater than six months
- Overtime income less than two years but greater than six months
- Confirmable amount of bonus (less than 2 years) earned in the previous year
- Self-employed income from a non-registered business (e.g., daycare, hairdresser)
- Employed tradesman with occasional side jobs
- Other non-traditional sources of income that are deemed reasonable

Supporting documentation may include but is not limited to:

  • YTD or year-end pay stubs
  • T4s
  • Copy of most recent bank statements
  • Letter of employment confirming income from the employer
  • Copy of contracts or invoices

Note: documentation requirements are assessed on a case by case basis and required when the application is submitted.

Complementary Solutions

Purchase
Portability
Refinance
Vacation/Secondary Home*
Rental*
 
*For more details refer to the applicable information sheets.

CREDIT GUIDELINES

Min credit score/LTV max2: 540-619 – up to 65%
BFS Stated: 540-579 – up to 60%3
≥ 620 – up to 65%
Max GDS/TDS4:
NA/45%; BFS Stated < 600 NA/42%
Vacation/Secondary Home*:
≥ 620 – up to 65%
BFS Stated: ≥ 620 – up to 60%
Rental*: ≥ 580 – up to 65%
BFS Stated: ≥ 650 – up to 65%
 
*For more details refer to the applicable solution materials.

value-added features,
options and Alternatives

Look Back Rate Guarantee
Up to 35 year amortization

1VRM CMHC only > 650 credit score required.

2This pre-payment privilege is non-cumulative and is available after the first anniversary of the mortgage.

3For LTV of > 80%, maximum purchase price or as-improved property value must be below $1 million.

4Debt service flexibilities are based on the overall assessment of the strength of the overall application. Satisfying the minimum credit score requirement alone does not automatically entitle the borrower to debt service flexibilities. All mortgages are funded by, registered in the name of, administered and serviced by B2B Bank. HOMEOWNER'S KIT is a registered trademark of Laurentian Bank of Canada. B2B BANK and BANKING THAT WORKS FOR BROKERS are registered trademarks of B2B Bank.