Self Employed Mortgages

Financing Considerations for Self-Employed

Here are a few things you need to make sure you deal goes smoothly.

1) Make sure you have a valid business license. If you have been in business for 2 years or more you may qualify for a loan based on declared income. This programme was put in place because self-employed and commissioned people have a large number of write-offs, and this lets you get the mortgage you can afford, not just the mortgage your tax return says you can. There is one drawback, if you are going for the high ratio loan your mortgage insurance (CMHC, Genworth, AIG) premiums are going to be pretty high (6%). So if you have a good down payment it will be a lot cheaper. If you can prove the larger income you will not be subject to the same level of insurance charge.

2) Be prepared. Like everyone else, getting a mortgage means there are a lot of documents to pull together and sign. Things to have handy: the last year's NOA or Notice of Assessment, this is less about income than whether you owe the government anything, the business license, if you have provable income then be ready to produce the required statements and depending on the property there may be other requirements.

3) Do not apply for other types of credit until after the deal is closed. Lines of credit, store cards, credit cards, will all run credit checks and these will show and could cause the lender and/or the insurer to be concerned that you are over-extending yourself. Wait a bit then see what you need and be judicious in your choices. Too many hits will hurt your score.

4) The markets are getting tighter so give your self time to get the deal done. Always make a purchase conditional on financing.

To learn more contact me, Andrea Meynell at 416-486-1113 and we can go over your personal situation and find you the right deal at the best rate.

Financing Considerations for Non-Traditional Borrowers

If you think your situation is unique and/ or traditional financial institutions have turned you down, then fill in an on line application or contact us and we will work with you to find the right product at an extremely competitive rate.

Although this list is not exhaustive, here are some situations that might look familiar. Each person’s situation needs to be evaluated on a case by case basis, and by listening carefully to you, and by learning about you and your needs we can ensure that your file gets to the right lender. It is how we address the mortgage needs of individuals and families and help to plant the seeds for a secure future.