Conquer Stress Tests, Freelancer Secured Max Loan
"As freelancers, banks kept rejecting us. Livefree helped structure our income proof and got us the max loan we needed. Highly recommend!"
(Client)
Mr. & Mrs. De Silva
Securing maximum financing despite irregular income documentation.
Mr. and Mrs. De Silva came to us with a clear goal: they wanted to purchase a beautiful executive condominium (EC) near their parents. They had the savings, the commitment, and a strong history of stable income, but with one complication—Mr. De Silva was a successful freelance consultant.
Freelancers and business owners often face a huge hurdle: The Mortgage Stress Test.
Traditional banks prefer the neat, predictable paychecks of salaried employees. Mr. De Silva’s income, while high, came in irregular lump sums, often paid by different clients. The bank’s initial assessment applied the strictest rules, significantly discounting his income and resulting in a loan approval that was $200,000 short of what they needed.
We knew the De Silvas were financially sound; the challenge was proving it to the bank’s underwriters in a way that their standard algorithms couldn’t automatically dismiss. Our strategy centered on two key pillars: strategic documentation and precise lender selection.
To address documentation, we didn’t just rely on the annual Notice of Assessment (NOA). We performed a deep-dive analysis, compiling comprehensive evidence to highlight stability. This involved presenting consistent quarterly cash flow proof, which is more persuasive than raw annual data. Crucially, we presented notarized copies of multi-year contracts with his major clients. This step allowed the bank to view a portion of his future earnings as reliable and recurring, a critical distinction in finance. Furthermore, we meticulously audited his business expenses, carefully separating legitimate costs from personal ones to maximize the allowable income used for the loan calculation, thereby significantly raising his effective Total Debt Servicing Ratio (TDSR) capacity.
On the lending side, we identified three specific private financial institutions known for their flexibility when dealing with the self-employed, provided the submission is perfectly structured. We prepared a single, comprehensive application package and presented it to the chosen underwriters in person. This personal engagement allowed us to explain the nuanced nature of Mr. De Silva’s thriving consultancy business directly, ensuring his file was analyzed by an experienced underwriter rather than rejected by a preliminary screening system.
Our focused, personalized approach paid off. Within three weeks, we secured an approval from the primary bank for the maximum loan amount the De Silvas needed, exceeding the initial restrictive offer by $200,000.
This success meant they could immediately proceed with the purchase of their EC without compromising on their unit choice, and they could keep a larger cash reserve for renovations. For the De Silvas, Living Freely means earning money on their own terms without unnecessary roadblocks from the banking system.
