You work hard, you make good money, you have a good credit history, you're independent, you're successful but you're self employed and you can't get a mortgage from the major banks. Right? Wrong?
Over 20% of Canadian income earners are self employed, business for self are 100% commissioned. With this large of a segment of the population working for themselves you would think the mortgage banks in Canada would take notice. Well they have! Finally.
Most people in business write off expenses before declaring income. That's the advantage of being in business for yourself. You pay income tax on a lesser amount but when you need to prove income for a mortgage approval, your tax returns make it look like your income is low and you can't afford the mortgage you deserve.
Qualifying for a Low Documentation Mortgage (Low Doc or No Doc or Alt Doc) is easier than you think. You can purchase a new property with as little as a 5% down payment or re-finance your existing home up to 90% of its appraised value. The lender bases their mortgage approval on your good credit history instead of your net income.
Requirements for an alternative low document mortgage:
- A clean credit history without slow payments, collections, judgments or bankruptcies
- Proof of self employed status for the last 2 to 3 years through Incorporation papers, GST returns or business registration papers
- Property must be located near a major urban centre
- The last 3 years Notice of Assessment (NOA) and T1 Generals from Canada Revenue Agency and your accountant to prove no taxes owing to Revenue Canada
- If your credit score is low you may be required to provide the last 12 months of bank statements to show regular deposits to prove your 'stated income'
- For purchase deals proof that your down payments is from your own resources, that is for No Proof of Income deals gifted down payments are not allowed.
For more information on the program or to see if you qualify for a Self Employed / 100% commission income mortgage click on the apply now button and fill out our easy on-line mortgage application or contact us at 519-258-6888 to schedule your appointment.