TD Mortgage Net Worth Program

High Net Worth Policy


Minimum Net Worth Requirement

List of Eligible/Ineligible Sources of Liquid Assets

1. Cash, near cash, stocks and bonds which are easily liquidated into cash (“Liquid Assets”)
2. Liquid Assets in RRSP/RRIF will be discounted by 30%
3. Liquid Assets in a TFSA that are not margined
4. Liquid Assets held in a personal holding company
5. Liquid Assets must be in Canada for a minimum of 90 days at the time of application, but do not need to be held at TD
1. Gifted Assets
2. RESP Holdings
3. Margin Investment Accounts
4. Restrained savings/investments
5. Liquid Assets in an Operating Company
6. Insurance
7. Real Estate Equity
8. Assets jointly owned/shared with a person not on the application


• Mortgage
• Purchase
• Refinance
• Transfer-In (Switches)
• Maximum of two
properties (TD, OFI or
o Owner occupied
o Second Home
o Recreational /
Cottage properties
• Note: Rental
properties are not
included in the
maximum number of
properties. Standard
rental policy applies.
• Rental Properties
• Non-Residents
• Insured
Terms• Fixed or Variable Rate
Amortization• Up to 30 years
Minimum Credit Score• Satisfactory credit history
LTV• Maximum 65% LTV
Appraisal Requirements• Full Appraisal Required
GDS/TDS• Ratios that exceed standard debt serviceability requirements are still considered exceptions and should be reviewed based on the strength of the application
• Customer must meet the minimum Liquid Assets criteria of $500,000
Down Payment• Minimum 35% following standard Down Payment guidelines.
• Minimum asset requirement is in addition to down payment.
• Gifted down payment is not permitted
Income Confirmation• Standard Income confirmation is required for any reported income
• Subject to Income Reasonability in all cases
• Only income earned in Canada will be included in debt service calculations
Minimum Net Worth Requirement• Minimum $500,000 in Liquid Assets in Canada for a minimum of 90 days prior to application; Liquid Assets do not have to be with TD.
• Additional Liquid Assets will be required for larger loan requests.
• Net worth requirement is in addition to funds for down payment
• Note: Net worth requirement must be confirmed. Confirmation of Net Worth Requirement will follow existing Down Payment Policy guidelines

High Net Worth Submission Criteria

Action Required• Identify customers through your conversation.
• Assess income reasonability and sustainability.
• Add ‘#HNW’ in application comments to identify the deal as a high net worth application.
• Use the comments template below to assist with strong rationale supporting your assessment.
Reasonability and Sustainability• Assess the reasonability of the application and the sustainability of the cash flow based on what the customer has shared with you during the conversation:
o Does accumulation of assets seem reasonable related to the profession,length of employment, and age of the borrower?
o Do the borrowers’ assets indicate enhanced ability to service debt beyond their level of reported income?
o How did the borrower accumulate their assets, and why is their reported income lower
The Submission• Given your new knowledge of how the customer earns their income, you are now able to summarize and explain:
o The customer’s full financial profile, and
o Why you are confident that the customer has the repayment capacity to support their TD Mortgage request.
Having the Conversation• The key to success is to have an in-depth conversation ensuring you obtain a
complete financial profile. If they have been successful in saving at least $500,000,
you should discuss the following:
o How did they earn the money to accumulate their savings? Will these earnings continue?
o How long have they had these savings?
o Why is there a difference between stated income and NOA?
o If they own a business, what kind of business is it? How long have they owned it? Is it a corporation?
o Do they have other types of income confirmation they could provide?
HNW Credit Submission Comments TemplateCollateral
• GDS / TDS: