MORTGAGES OFFERED WITHOUT SALARY CHECK
By Peter Brieger
Mortgage Intelligence Inc. yesterday
unveiled a new offering
that doesn’t require homebuyers
to provide details of their
salary for the mortgage.
Instead, consumers can get
the “i deserveTM” mortgage with
proof they have a stellar credit
record and a job. Both of those
criteria will be verified for the
loans, available to a maximum
of $700,000 in large urban
centres, the mortgage broker
said.
Mortgage Intelligence is
charging a 50-basis-point premium
on the interest rate.
One group being targeted is
the self-employed whose
income changes from year to
year, a growing part of the
workforce.
According to recent Statistics
Canada data, the selfemployed
made up 16% of the
workforce in 2001, up from
12% in 1996.
“The workforce in Canada is
changing,” said Bob Ord,
president of Mortgage
Intelligence, a unit of General
Motors Acceptance Corp.’s
home loan division.
“A large and growing segment
of population [is] taking
advantage of flexible or unconventional
employment opportunities.”
“When income is a factor in
mortgage decision-making, the
necessary financial documentation
for this type of application
can be very cumbersome,” he
said.
“It’s really for anybody with
a great credit rating,” Mr. Ord
said. “And there are a lot of
people out there who don’t
want to tell you what they
earn.”
People with “stellar” credit
histories are unlikely to ask for
more than they can afford, he
added.
Financial Post
pbrieger@nationalpost.com
Reprinted with permission
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