77% LTV Purchase of lower end Edmonton town house, gifted down, no NOA since 2010, no active credit

Request: Applicant looking to purchase dwelling in Edmonton for under $200,000 based on available gifted down payment. Client is BFS requiring stating income approval without being able to show a recent NOA.


  • Stated income for BFS driver where no personal tax returns have been filed since 2010
  • Down payment is gifted from various sources and donors
  • No active credit on his personal credit report since 2010
  • Dwelling was 1967 town house with purchase price well under 200K
  • Required LTV nearing high ratio status


  • DLC agent referred deal to Plan B on a July Monday
  • 80% approval was located in 2 days but conditioned recent NOA which could not be fulfilled
  • Application was shopped to various lenders in order to find approval within budget with conditions to be filled
  • Subject removal extension granted
  • New approval located and presented to client the day before the new subject date
  • Subjects removed on time without actually fulfilling all conditions but were confident all could be obtained
  • Typical B client behaviour with very slow response time and lack of urgency…still collecting conditions up to the day of funding!
  • Purchase funded on time
  • Client very pleased with the approval terms as well within budget and available down payment
  • Final funded approval was 77% LTV, 4.39% rate, 1% lender fee
  • A private 2nd mortgage approval was obtained to 85% in case client could not produce the required down payment which he was so this 2nd mortgage approval was not required
  • DLC agent did very little in the process and will be making a 127bps commission