Starting problem: A self-employed business owner in the GTA needed to refinance their home to consolidate high-interest business debt and clear outstanding tax obligations. Despite generating over $189,000 in gross annual deposits, their major bank declined the application because aggressive tax write-offs left their Notice of Assessment at just $38,000.
What the lender saw: Evaluated on $38,000 net income, the total debt service ratio came in over 91 percent. The bank declined.
The structural move: I transitioned the file to an Alternative bank statement program. Instead of tax returns, the file was assessed on 6 to 12 months of actual business bank deposits, establishing a true qualifying income of $104,375.
Lender tier: Alternative lender through a bank statement program.
Result: Secured a $680,000 approval at 59.1 percent loan-to-value, based strictly on business bank statement cash flow. No personal tax returns needed. Rolling $100,000 of high-interest debt into one structured mortgage cut total monthly debt payments by $2,150.
In the client’s words: ‘We were turned down by our bank and honestly thought we were out of options. Tony took the time to understand our situation, explained everything clearly, and walked us through a strategy that worked. The process was much smoother than we expected and gave us a path forward.’ — Self-Employed Client Review