What is an affluent, high net worth mortgage?
High net worth mortgages are available to borrowers with average incomes who also have substantial assets and good credit.
Who is an affluent, high net worth mortgage for?
High Net Worth mortgages are offered to clients who can’t show high income, but can show liquid assets and have good credit scores.
For example:
For example:
- Business owners that claim to make a minimal income yet have a large liquid asset base (they do qualify, but not for the amount they desire)
- Those with median incomes who ALSO do not meet the requirements for the loan amount they want but have considerable liquid assets
How does a high net worth mortgage work?
The borrower must establish their eligibility.
Here are the general criteria (which may vary from one lender to another):
Here are the general criteria (which may vary from one lender to another):
- 20%–35% as the minimum down payment
- Besides the down payment, the applicant must also have at least $250,000 in liquid assets: Cash, stocks, bonds, RRSP, RRIF, TFSA, and funds held inside a personal holding company are examples of eligible assets.
- Asset history from three to twelve months prior to the application date
What are the advantages?
- Borrowers low on cash can use their assets to qualify for a mortgage
- The more liquid assets you have, the more mortgage you can qualify for
- You can qualify for a mortgage even if, despite having a large net worth, typical income requirements might not adequately reflect your entire financial situation
What do I need to get started?
If you think you might qualify as a “high net worth borrower,” we’d be happy to assist you. We can walk you through all the steps.
Contact us right away, and we’ll set up a time to talk about your case. From there, we can tell you what kind of mortgage loan you might qualify for.
