Self Employed Mortgages
Rules for Self Employed lending are much harder than ever before. Those days are gone, when you could buy a home with “stated income” and good credit. Today more and more Canadians are opting to work for themselves or go on contract with their existing companies rather than receive a salary. There are certainly some advantages to being business-for-self. Perhaps the greatest being the ability to write-off many personal expenses and ultimately pay less income tax. The downside to this is showing less income on your tax return and as a result qualifying for less or not qualifying at all
When applying for a mortgage using “stated income” the minimum down payment is 10% and all mortgages with less than 20% down must be insured by one of 3 Canadian Mortgage Default Insurers. They are CMHC, Genworth, and Canada Guaranty. All insurers have slightly different guidelines.
Fortunately, there are options and we offer loan programs specifically for the Self employed. Approvals are based on factors such as good credit, length of time in business, and the property type and location rather than business financials or tax returns alone.
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