Conventional Full Rental Properties Mortgage types • Conventional Property types • One to four units, fully self-contained legal units that meet municipal zoning requirements. No basement income is to be used unless legal or legal non-conforming. Loan purpose • • Purchase and refinance HELOC not available Title • Guarantor not permitted (spousal guarantor allowed, may need ILA) Corporate borrowers • Not permitted Beacon score • Minimum beacon of 680 for primary applicant. No prior bankruptcy. Maximum number of mortgages • Maximum of two rental properties financed by ING DIRECT per client. Maximum loan to value • Conventional up to 80% LTV (max 75% LTV for Condo apartments)   • Maximum ETO $200,000. Amortization • The maximum amortization period is 35 years or 5 years less than the remaining economic life of the property, which ever is less. Down payment • Must be from own resources, gifted down payment is not allowed. Net worth • No minimum net worth requirement. GDS/TDS • No GDS, maximum TDS = 42% Borrower income • Full documented income verification Rental Income Confirmation • Lesser of actual rent by way of lease agreement or appraiser's fair market rent. We will also accept as confirmation of rental income: cancelled rent cheques; borrower T1 Generals; financial statements prepared by a practicing accountant; or bank statements

Conventional Owner-Occupied Rental Properties (2 - 4 units):

Owner occupied rental properties are residential rental properties of 2 to 4 units where the owner resides in one of the units. All of the above conventional full rental property guidelines are applicable to conventional owner occupied rental properties.

	Conventional Rental Income Calculations 1. Subject property is an owner-occupied 2-4 units or 100% Rental up to 4 units and we need the rental income to qualify: TDS =              PIT + other debts                         Gross income + 80% of gross rent 2. Subject property is an owner-occupied Single Family Dwelling and client has other rental property(s) and we need the rental income to qualify: TDS = PITH (subject) + PIT (rental) + other debts           Gross income + 80% of gross rent 3.Subject property is an owner-occupied 2-4 units or 100% rental up to 4 units and client has other rental property(s) and we need the rental income to qualify: TDS =     PIT (subject) + PIT (rental) + other debts                Gross income + 80% of gross rent (subject) + 80% of gross rent (other rental)

Insured Owner-Occupied Rental Properties (2 - 4 units):

ING DIRECT will generally follow Genworth's revised guidelines except for applications where a mortgage is already insured by CMHC. Under the new guidelines, taxes and heat will no longer be included in the TDSR and only 50% of gross rent can be added to the gross annual income.

Second Homes and Recreational Properties

• Second homes are generally vacation homes, but in some cases may also serve as the primary residence for other family members (e.g., children attending college or university) or as a second home in another part of Canada.
• High ratio applications (over 80% LTV) must qualify under insurer guidelines, and as with conventional applications for secondary homes (LTV 80% or lower), must be qualified considering both the primary and secondary home.
• Borrower must show verifiable income which could service both properties. GDS 32%, TDS 42%.
• Recreational / Cottage properties may be considered provided the subject property meets the following guidelines:
• • Property is accessible with year round road access and is suitable for occupancy all four seasons.
  • Must have standard features such as full insulation, and conventional services such as electricity (100 AMP minimum), plumbing, sewage, heating system, Municipal services and/or septic.
  • Municipal water or, at minimum, well water (With a Water Potability Certificate). Lake drawn water as the primary source will be looked at on a case by case basis.