Line of credit - Standard Life

General Information
Identification and Third Party Determination
Identification of each Applicant and
Guarantor:
The “Proceeds of Crime (Money Laundering) and
Terrorist Financing Act” (the Act) requires financial
institutions to respect certain standards for
identifying applicants wishing to open an account
or benefit from a financial service.
In the presence of the individual to
be identified:
In order to establish an applicant’s identity
the Broker must obtain two original identity
documents from the individual to be identified.
The description of these identity documents must
be inscribed in the appropriate section of the
credit application.
The identity documents used to identify the
applicant(s) must be legible, valid and unexpired
originals in good condition. Photocopies are
not acceptable.
Financial Consumer Agency of Canada (FCAC)
Regulation
According to a new regulation from the Financial
Consumer Agency of Canada (FCAC) which is
in effect since January 1 st 2008, co-borrowers
are entitled to receive all regulatory information
including account statements.
Refer to the Appendix I in this guide for more
details on acceptable identity documents for
identification purposes.
Third Party Determination
It is required to determine if the requested product
is to be used under the name of a person other
than the applicant or co-applicant. When it
is the case, it must be indicated in the proper
section of the credit application and “Third party
information appendix” completed and provided.
This information is meant to allow the Bank,
in accordance with the law, to determine if the
Applicant (and Co-Applicant (if applicable)) opens
the account for his/her own financial activities or
the financial activities of another person or entity.
Consequently, co-borrowers can request receipt
of all regulatory information, by selecting the
applicable option in the “Account statement”
section of credit application.
Should that option be selected, the co-borrowers
will receive the following:
• Welcome letter
•
Account Statements
Definitions and information
Gross Monthly Income Employment income before income taxes. An employer’s pension is an
acceptable income, the same as employment income.
Other Gross
Monthly Income
The following types of income can be considered in a credit application if it
has been constant for the past three (3) years. Indicate the average of the last
three (3) years.
• Dividend income
• Interest income
• 50% of gross rental income
Non-Eligible Income • Family allowance
• Social assistance
• Worker’s Compensation benefits (eligible with official document proving
the permanent nature of the disability)
• Employment insurance
• Old Age Security
• Alimony
• Capital Gains
Debt(s) / repayments Amount of money due to a person or creditor:
• Credit Card: Calculate 3% of the outstanding balance
• Line of credit: Calculate 3% of the outstanding balance
• Mortgage Loan: Amount of the monthly payments
• Personal Loan: Amount of the monthly payments
• Other debts: Amount of the monthly payments
Monthly expenses Amount payable on a continuous basis
• Taxes (Municipal + School) (if the property is in joint ownership, include
100% of the monthly cost)
• Condominium Fees, Utilities Cost
• Rent, Leases, Other
• Alimony
Do not include any expenses related to rental property.
Endorser/guarantor • Contract binding a person, the endorser/guarantor, to repay the
applicant’s debt to the Bank should they fail to meet their payments.
• A separate “credit application” must be completed and signed by the
endorser/guarantor to obtain his personal and financial information.
6 Standard Life Standard Life 7