At Magenta, we know there are many reasons why clients might require equity-based mortgage products. For some, unexpected challenges such as the COVID-19 pandemic may have left a mark on their credit or a gap in their tax filings that make applying for traditional mortgages difficult, regardless of their current assets and income. Others might simply have an income that’s difficult to verify, whether because they are self-employed, or their income is from a separation or bereavement, rather than employment. With these challenges in mind, let’s explore how Magenta’s No Doc mortgages can be a game-changer for alternative borrowers who fall just outside of traditional lending criteria.
Business For Self
Magenta offers No Doc mortgages tailored to alternative borrowers whose circumstances may not be best served by other institutions. For instance, consider the small business owner looking to use home equity to fund their business. If that business has a significant cash component, it will lack the verifiable income needed to qualify for a bank loan. But with Magenta’s No Doc mortgages, that borrower would only need to provide proof of ownership of a marketable home in a high-quality location to apply for a No Doc mortgage with up to 75% loan-to-value (LTV).
Rentals
Consider also the self-employed property investor hoping to get a mortgage on a rental property to free up the capital to renovate their other projects. Due to the fluctuating nature of their cash flow, they may lack the evidence to prove their ability to repay a loan, despite their actual financial capacity being more than sufficient. With a Magenta No Doc Mortgage for Rental Properties, not only is there a 100% offset on rental income with no maximum number of doors, but there is also up to 75% LTV on student rentals. Furthermore, Magenta offers 2-year terms in addition to traditional 1-year terms to better suit the needs of a property investor.
Our solutions accommodate your alternative borrower clients by placing the burden of proof on the quality of the property to be mortgaged. Keep reading to find out why you shouldn’t knock no doc:
- Smaller Monthly Payments: Magenta offers 50-year amortization or interest-only payments. This balances our rates in favour of smaller monthly payments, passing the benefits on to your client’s cash flow.
- New Longer Terms: Magenta is proud to have recently added 2-year terms as an option, in addition to our traditional 1-year term offerings.
- 24-Hour Quick Closes: Has a borrower’s lending institution option fallen through? Our team will put in the work to help you meet your client’s deadline.
- Capitalized Fees: We capitalize lender fees and broker compensation. This means the cost is added to the client’s principal and spread over the life of the mortgage.
See our selection of no-doc mortgages for yourself- all funded this year:
No Doc Mortgages are available in urban, small centre and rural locations throughout our lending areas. Please view our interactive Google Map or speak with your Magenta representative to find out more.
Interested in what Magenta has to offer? Connect with our mortgage origination team, or click here to learn more.