For self-employed mortgages, providing 2-3 years of documentation (notice of assessment) from Revenue Canada to confirm business income is the best scenario for mortgage lenders to approve your mortgage financing.
As a self-employed person, if your notice of assessments do not show sufficient income to qualify you for the mortgage you require, you may have an option to be approved with a higher down payment (10%) assuming you have a high credit score.
You will be asked to provide:
Anyone who applies for a mortgage when self-employed, whether to private mortgage lenders or other financial institutions, could be required to provide the following:
Some lenders may allow you to add back some tax deductions to your income, such as car expenses, advertising, capital cost allowances and housing expenses. Other lenders will simply allow a 15% add-back to account for these expenses.
Some lenders will offer insured “stated income” mortgages, specifically designed for self-employed borrowers. In order to qualify for a stated income mortgage, you will need to take out your own mortgage loan insurance with a private mortgage default insurer, as the CMHC does not provide mortgage default insurance for these types of mortgages. Stated income applications also require:
Interest rates offered for self-employed borrowers are the same as a regular borrower.
Our team is devoted to helping you achieve your long term goals. Enjoy options and possibilities that you may not have considered when sticking with traditional banking products such as traditional mortgage or stated income mortgage with minimum down payment. If your goals include paying down your mortgage faster or looking for a rental income to make some headway on your amortization we are happy to discuss all of your options. Your Kelowna Mortgage Broker is able to help you with your first mortgage or renegotiating the terms on an existing property. Call John Antle Mortgages in Kelowna today and let’s get started!