Self-Employed Mortgage Solutions
Mortgages For Self-Employed Borrowers Can Be More Complicated. Let Our Expert Team Guide You!
Proving self-employment income, and income stability for the years to come, can be difficult for new business owners.
Many Canadians have successful small business ventures and would not trade the lifestyle for anything in the world. However, many may begin to question their lifestyle and business choices when they first attempt to obtain financing for their home, or even something as simple as a new credit card or vehicle. The nature of self-employment income can sometimes leave the self-employed looking like poor credit risks, even though they may actually have a more stable source of income than those who are working 9 to 5 for an employer.
Thankfully, Canadian mortgage lenders are starting to understand the importance of self-employment in our culture, and are making great mortgage programs available to the self-employed to finance their primary residence and even their vacation homes.
Licensed mortgage professionals are experts at assisting self-employed individuals with getting a mortgage, and they will ensure you get the best mortgage available through one of Canada’s largest lenders.
Obtaining a mortgage if you’re self-employed has never been easier, and you will be excited to learn that the mortgage products available today are structured to help you succeed in your business and your personal life.
Self Employed Solutions
Business For Self Alt-A Program (Stated Income):
This self-employed program is for borrowers who have at least 10% down and less than 20%. The program allows borrowers to reasonably state their income on their mortgage application.
- 10% Down Payment – At least 5% must be from your own resources (5% can be gifted by an immediate family member).
- Minimum 2 years of self-employed business ownership (Sole Proprietor, Partnership, or Incorporated)
- Income can be stated based on the reasonability of the business.
- All income taxes for all years must be filed and paid.
- Higher Mortgage Insurer Premium.
- Commissioned salespeople are ineligible for this program.
- Recommended credit score of 680 or higher.
Business For Self Less Than Two Years (Same Industry):
This self-employed program is designed for borrowers who have a minimum of 5% down and ideally for borrowers who have started their own company within 24 months and have worked in the industry for longer than two years.
- 5% Down.
- Borrower qualifications include starting their own business in the same industry, buying a successfully established business, sufficient cash reserves, specialized training and education, etc.
- Sole proprietorship, partnership, or incorporated
- All income taxes for all years must be filed and paid
- Minimum credit score of 600
Stated Income Programs “B” Lenders”
Stated Income programs are offered by many our our alternative lenders. These lenders typically will require a 20%-25% Down payment are much more flexible with borrower’s credit and are usually more generous for allowing larger stated incomes. With alternative solutions, one really needs to do an apples-to-apples comparison with respect to rates, terms, and real hard costs. It is important that borrowers don’t get discouraged by the fees and higher rates. Many, many times this solution will put borrowers further ahead than traditional banks and credit unions.
- 20% Down Payment (a portion may be borrowed)
- Lender & Broker Fees 1%-3% of mortgage amount
- No minimum credit score
- Minimum 6-12 months self-employed
- Competitive interest rates but higher than most banks and credit unions.
If you are a sole proprietor, partnership or corporation, we can help! Please complete the contact form below.