Using Non-Traditional Assets to Boost Mortgage Approvals
Another area where we’ve seen some exciting developments is in the recognition of non-traditional assets in mortgage approvals. Historically, having significant amounts of money in RRSPs, TFSAs, or stocks didn’t help when applying for a mortgage. It was frustrating to see clients with large portfolios get declined simply because the banks didn’t consider these assets in their decision making.
That’s changing. Through our relationship with the Wealth division of a Big Six Canadian Bank, we can now use 10% of a client’s savings, stocks, and investments, like RRSPs and TFSAs, as income for mortgage qualification. For example, a client with $1 million in stocks can count $100,000 as income on their mortgage application. This development has been instrumental in getting many of our clients approved for mortgages that were previously declined.
This shift represents a significant breakthrough in the mortgage world, and I believe it’s only a matter of time before other banks start to follow suit.
These changes are a win for investors and property owners, creating new opportunities and simplifying the process of securing financing in a market that continues to evolve.
— Dave Butler, Mortgage Broker at Better Mortgage Select