Self-Employed Mortgages
Many Canadians are self-employed. How do you qualify for a mortgage if you are self-employed? We can help. There are three Canadian insurers available to self-employed individuals that lenders go through to utilize their programs.
Different lenders will accept different programs, and we will help you figure it out. The programs include Genworth Alt A., CMHC Self-Employed Program, and Canada Guaranty Low Doc Advantage.
All three programs include financing for up to 90% on purchases. They will require:
- Minimum two years of owning business and history of running your business
- Minimum two years of income history
- Documents for verification such as copy of business licence, GST/HST return, T1 General with statement of business activities for two years
- If incorporated, they will need article of incorporation and audited financial statements for two years prepared by a certified accountant
- Proof that no income taxes are owing
- Minimum 5% down payment is from your own resources
- Good credit
Generally, the two-year income will be averaged out. Many lenders will allow you to gross up the net income after the two-year average is calculated.
Stated income must be reasonable and reflect your financial profile. This program will require minimum 10% down payment, where 5% must be from your own resources and not gifted.
It is possible that the down payment can be more. When you have minimum 35% down payment, there may be more flexibility from the lender and insurer.
Call us now discuss more details, and find out which program is best for you.