Mortgages for self employed
Programs to assist self employed home buyers have come a long way. There are now a number of products available designed specifically for self employed individuals.
Financing is available with CMHC or Genworth mortgage insurance up to 95% for home purchases and up to 90% for refinances. Conventional mortgages are available up to 80% of the home’s value.
Amortizations are available to a maximum of 35 years provided there is evidence of excellent credit history. Self Employed mortgage programs are based on your stated income. One of the primary requirements is that the income stated must be reasonable based on the size and type of business. The lender will want to feel confident that the applicants are able to adequately service their mortgage debt.
Typically lenders will require the following documentation from Self Employed clients:
- Notice of Assessment (from CCRA) to ensure that no income taxes arrears owing.
- Evidence of at least two continuous years of self employment, confirmed by a third party may be required. Acceptable forms of confirmation include articles of incorporation, business license, bank account statements.
- Individuals will be required to meet the lenders credit history and credit score requirements
- A real estate appraisal
- Proof of down payment on deposit from non borrowed sources and 1.5% of the purchase price available to cover the costs of closing the transaction.
- Additional supporting documentation to confirm "reasonable income" may be required
- A completed application that we will assist you with.
