Business For Self (BFS) Mortgage Solutions

If your clients are self-employed and unable to provide traditional income verification, the Genworth Business for Self (ALT.A) mortgage program may be the answer. Borrowers must have a minimum of two years business for self and a proven two-year history of managing their credit and finances responsibly.

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

  • Maximum two units where one unit is owner-occupied
  • New construction covered by an approved New Home Warranty program
  • Existing properties
  • Readily marketable residential dwellings, located in markets with demonstrated ongoing resale demand

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

  • Purchase and refinance: > 80% – 25 years
  • Purchase: ≤ 80% – 35 years
  • Refinance: ≤ 80% – 30 years

Loan amounts

  • $50,000 up to $750,000
  • Maximum equity withdrawal: LTV 75.01% – 80% – up to $100,000; LTV < 75% – up to $200,000
  • Maximum property value LTV > 80%: Less than $1,000,000

Borrower qualification

  • Strong credit profile with minimum two trade lines with at least two years' history
  • No mortgage, installment or revolving credit delinquencies appearing on the credit bureau in the past 12 months
  • No reported defaults on residential mortgages for the past 7 years
  • No previous bankruptcy
  • Minimum 5% down payment from the borrower's own savings;
    the remainder may be gifted from an immediate family member; borrowed down payments are not permitted
  • Applicants with commission income are ineligible
  • All applicants used to qualify must occupy the property
  • Borrowers are permitted one Genworth Canada insured ALT. A mortgage

Documentation Requirements

  • Copy of business or GST license or Articles of Incorporation showing business license demonstrating at least two years' tenure
  • Reasonability assessment of the stated income, including consideration of the nature of the self-employment, reported by the borrower
  • Most recent NOA to confirm no tax arrears
  • Letter of Attestation of Income
  • T1s or business financials to confirm gross business revenue
Note: Documentation requirements may vary on a case by case basis.

complementary solutions

  • Purchase
  • Purchase Plus Improvements

Exclusions

  • Cash Back
  • Family Plan
  • Investment Property
  • Secondary Home/Vacation Home

CREDIT GUIDELINES

  • Min credit score:
  • ≥ 650: 90% Purchase; 80% Refinance 620-649: 80% Purchase and Refinance 600-619: 60% Purchase and Refinance
  • Max GDS/TDS2:
  • 600-679 – 35%/42%; ≥ 680 – 39%/44%
  •  

value-added features,
options and Alternatives

  • Look Back Rate Guarantee
  • New Construction Extended Rate Guarantee
  • Switch/Transfer
  • Bridge Loan3

1This pre-payment privilege is non-cumulative and is available after the first anniversary of the mortgage. 2Debt 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. 3Issued by Laurentian Bank of Canada. 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.

The Business for Self Expanded solution is ideal for your self-employed clients who have been in business for a minimum of two years and can validate their income using business bank statements.

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

Evidence that the business has been in existence of a minimum of two years should be provided by one or more of the following, as applicable:
  • Articles of Incorporation (Corporation only)
  • T1 Generals with Statement of Business Activities and all schedules for the most recent two years (for sole proprietorships/partnerships)
  • Most recent two years' audited/unaudited company financial statements
  • Business registration, GST/HST registration or Business License
  • CIDREQ in Quebec
Confirmation of Income:
  • Most recent NOA to confirm no tax arrears
  • A signed Letter of Attestation certifying the forecasted personal income for the next 12 months
  • Most recent 12 months' business bank statements
  • Note: the income used for debt servicing is validated by an underwriter review of 12 months' business bank statements (statements must be provided when the application is submitted)
Note: Documentation requirements may vary on a case by case basis.

complementary solutions

  • Purchase
  • Portability
  • Refinance
  • Vacation/Secondary Home*
  • Rental*
  •  
  • * For more information see applicable information sheets.

CREDIT GUIDELINES

  • Min credit score/LTV max:
  • 580-599 – up to 70%
  • 600-679 – up to 75%
  • ≥ 680 – up to 80%
  • Max GDS/TDS2:
  • < 680 – 35%/42%
  • ≥ 680 – 39%/44%
  •  

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. 2Debt 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.

Starting your own business is an exciting and demanding experience. The Business For Self — New Professional mortgage is ideal for new professionals such as doctors, lawyers, dentists and accountants. They may not necessarily have the corresponding documentation history but have strong earning potential.

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

  • Evidence that the business has been in existence for a minimum of two years, provided by one (or more) of the following, as applicable:
  • Articles of Incorporation (Corporation only)
  • T1 Generals with Statement of Business Activities and all schedules for the most recent two years (for sole proprietorship/partnerships)
  • Most recent two years' audited/unaudited company financial statements
  • Business registration, GST/HST registration or Business License
  • CIDREQ in Quebec
Confirmation of Income:
  • Most recent NOA to confirm no tax arrears
  • A signed Letter of Attestation certifying the self-employed applicant's forecasted personal income for the next 12 months
  • Confirmation of professional accreditation from a recognized post-secondary institution or governing body
  • Rationale supporting income, which may include a copy of a job offer, confirmation of existing practice being purchased (including financial statements from the previous owner and/or senior management), and/or confirmation that the Letter of Attestation of Income is deemed reasonable for the applicant's profession

Complementary solutions

  • Purchase
  • Portability
  • Refinance
  • Vacation/Secondary Home*
  • Rental*
  •  
  • * For more details see applicable information sheets.

CREDIT GUIDELINES

  • Min credit score and Max LTV:
  • 580-599 – up to 70%
  • 600-679 – up to 75%
  • ≥ 680 – up to 80%
    Vacation/Secondary Home: ≥ 620 – up to 65%
  • Rental: ≥ 650 – up to 75%
  • Max GDS/TDS2:
  • < 680 – 35%/42%
  • ≥ 680 – 39%/44%
  •  

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. 2Debt 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.

This alternative mortgage is designed for your clients who have been self-employed for less than two years and may be relying on stated income for qualification purposes.

Overview

Terms

  • Fixed terms of 1 - 5 years

Eligible properties

  • 1 - 2 units
  • Owner-occupied
  • 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 $500,000 (loan amount is assessed on a case by case basis)
  • Maximum equity withdrawal: up to $50,000 (equity withdrawal amount is assessed on a case by case basis)

Documentation requirements

  • Most recent NOA to confirm no tax arrears, and
  • A signed Letter of Attestation of Income
And one or more of the following, as applicable:
  • Accountant-prepared financial statements
  • Accountant's letter
  • Three to six months' bank statements to demonstrate the existence of cash flow and/or demonstrate the repayment record of existing mortgages or rent
Any one of the above may also be supported with copies of contracts, or sales orders or Business License.
Employment history and the income being declared as stated income must be deemed reasonable for the profession or occupation listed.

Note: Documentation requirements may vary on a case by case basis

complementary solutions

  • Purchase
  • Refinance
  • Vacation/Secondary Home*
  • Portability
  •  
  • * See program specific details for more information.

CREDIT GUIDELINES

  • Min credit score/Max LTV:
  • 540-579 – Purchase up to 65%, Refinance up to 60%;
  • ≥ 580 - up to 65%
  • Vacation/Secondary Homes:
  • 540-579 – up to 60%; ≥ 580 - up to 65%
  • Max GDS/TDS2: 45%/50%

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. 2Debt 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.

This specially designed alternative mortgage helps your self-employed clients who have been in business for more than two years and are relying on stated income for qualification purposes.

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

  • Credit Score ≥ 600: 35 years
  • Credit Score < 600: 25 years

Loan amounts

  • Credit Score ≥ 600: $50,000 up to $750,000 (LTV is assessed on a case by case basis)
  • Credit Score < 600: $50,000 up to $500,000
  • Maximum equity withdrawal: up to $100,000 (amount may vary
    by credit score)

Documentation requirements

  • Most recent NOA to confirm no tax arrears, and
  • A signed Letter of Attestation of Income
  • Stated income must be reasonable for profession and business characteristics
  • Employment history and the income being declared as stated income must be deemed reasonable for the profession or occupation listed
  • Evidence that the business has been in existence for a minimum of two years provided by one (or more) of the following as applicable:
  • Articles of Incorporation (for a corporation)
  • T1 Generals with Statement of Business Activities and all schedules for the most recent two years (for sole proprietorship/partnerships)
  • Most recent two years' audited company financial statements
  • Business registration, GST/HST registration or Business License
  • CIDREQ in Quebec
Note: Documentation requirements may vary on a case by case basis.

complementary solutions

  • HELOC*
  • Purchase
  • Refinance
  • Vacation/Secondary Home*
  • Rental*
  • Portability
  •  
  • * For more details see applicable information sheets.

CREDIT GUIDELINES

  • Min credit score: 540
  • Max GDS/TDS2 : ≥ 600 - NA/45%;
    < 600 - NA/42%
  • Max LTV: ≥ 580 - 65%; < 580 - 60%
  • HELOC: ≥ 650 - 65%
  •  

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. 2Debt 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.

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