Private Client Mortgages

Who are private client mortgages for?

• Business owners and incorporated professionals whose personal income understates what they earn
• Investors and retirees with significant assets and modest taxable income
• Families buying or refinancing larger or more complex properties
• People who want their borrowing coordinated with their advisor, accountant and lawyer

How do lenders look at wealth instead of a pay stub?

A standard application starts and ends with taxable income. Some lenders go further. They will look at net worth, at the income a business really produces once legitimate expenses are added back, and at the liquid assets behind the borrower.

Each lender does this differently, and the differences are large. My job is to know which lenders read your kind of balance sheet well, and to present your file so it is understood the first time.

Can I borrow against assets other than real estate?

In some cases, yes. Depending on your situation, lending can be arranged against:

• Insurance policies that have built up cash value
• Investment portfolios
• The strength of an operating business

This kind of borrowing is often used alongside a mortgage, for example to avoid selling investments at the wrong moment or to keep capital in a business. It is arranged together with your financial advisor and accountant.

What does working with me look like?

• One point of contact. I handle the lender conversations and keep your advisors informed.
• Discretion. Your financial details are shared only with the people and lenders the file requires.
• Structure first. I start with what the borrowing is for and how it fits your plan, then choose the lender and product.
• Other tools where they fit. For some clients an offset mortgage is the better structure.

What are the costs and risks?

• Lenders that look beyond income may charge more. Rates and fees can be higher than a standard mortgage.
• Borrowing against investments carries market risk. If the investments fall in value, the lender may ask for more security or repayment.
• Borrowing against an insurance policy reduces what the policy pays out until the loan is repaid.
• Tax treatment varies. Confirm it with your accountant before you proceed.

This page is general information and is not financial, legal, tax or investment advice. All lending is subject to lender approval.