The philosophy of an equity lender is a percentage (%) value of the "Purchase Price" or "Appraised Value" (whichever is lower) of a "Marketable Property". Refinancing a property, the "Appraised Value" is always used. The power and focus of Equity Lending in mortgages is primarily on the "value of the bricks and mortar". Secondary consideration in an Equity mortgage is given to income and a clients credit history. Equity lenders are in the business of financial loans secured by mortgages, to be visualized as a Real Estate company that lends mortgages. Equity Mortgages can be a powerful tool so please read on.

A Self-Declared income letter is all that is generally required to be filled out by the individuals on title to the property. The traditional Canada Customs and Revenue Agency (CCRA) Notice of Assessments (NOA's) are not required as confirmation of income. Proof of professional designation such as trade license or business invoice will be required.

Interest rates on your equity mortgage will be based on individual Credit History (Equifax: Beacon Score and payment history) and the Term of the equity mortgage. Traditional Banks will usually offer slightly better rates than an Equity Lender however the Equity mortgage applies when Traditional Banks will have said NO.

Mortgage amounts in equity lending may generally be calculated at 75% to 85% of the Purchase Price or Appraised Value whichever is "LOWER". In the case of a refinance, the rule will of course be 75% to 85% (conditions apply) of the appraised value. Make no mistake in that these Equity Lenders have their own specific and designated appraisers.

Most "No Income Verification Mortgages" Require Revenue Canada Notice Of Assessment To Confirm That You Don't Owe Any Income Taxes - WE DON'T!

The Equity Mortgage product is great for self-employed who can't qualify for a regular mortgage financing due to many business write-offs available under normal accounting principles. If you can meet the product guidelines below, we will not ask you for any income verification - not even Revenue Canada Notices of Assessments! Furthermore, if your credit is not exactly perfect and can't meet this product guidelines, don't worry - we approve virtually all equity mortgages up to 75% (conditions apply) of your home value. We can provide you with a home equity mortgage up to 75% of your home value without income verification! This product is available for properties located within short driving distance to major Canadian cities with a minimum population 100,000.

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