Self Employed Mortgages Vancouver & BC

• Allow Us your BC Mortgage Broker to sourse the right Self Employed Mortgage for your needs. Call 778-839-3963 or send a Quick Quote form.

  Self Employed Mortgage
  Self employed mortgage client’s fall under a category of their own, unlike their salaried counterparts. Your Vancouver BC Mortgage Broker understands that one of the largest issues with Self Employed is their income fluctuates due to the nature of their business. Most importantly the self employed have many write offs and because of these write offs they might not always truly show their earning potential. Mortgage Application
  
  Lenders for Self Employed Mortgage clients have made it easier to qualify for the Best Mortgage Rates, thanks to mortgage insurance from CMHC & Genworth. Do to the greater amount of self employed people if you can prove your income, mortgage insurance companies will insure a mortgage for self employed up to 95%. Different Mortgage lenders allow you to gross up your income do to the type of business you run. Make sure you allow a Mortgage Broker too present your application for best results.

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Self Employed as a sole proprietor or a corporation
Consultants, Contractors, Real Estate Agents
There are many different products and each of them requiring specific documentation. Your Vancouver BC Mortgage Broker can prepair you application.


Conventional Mortgage
Mortgages for conventional where the borrower has at least 20% down payment, the rules for qualification will vary from lender to lender based on the Mortgage Products they offer.

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  High Ratio Mortgages
  The lender for High Ratio mortgages will have to comply with the Canadian Mortgage and Housing Corporations (CMHC), Genworth, rules.  Your mortgage issues will have to be discussed so that you know how much you qualify for.  

• On these traditional programs, borrowers should be prepared to provide 2 years NOA’s Notice of assessment and in some cases the complete T-1 General (2 years), full Statement of Business Activities (2 years), and current year-to-date information. The lender, at their discretion, may allow add backs for depreciation, salary paid to owner/spouse, rent paid to owner (such as in a home office). Most lenders will be looking to establish the average income for the past 2 years in determining the amount the borrower is qualified to borrow. 

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  No Income Qualification (NIQ) programs
  Stated Income Mortgage
  There is less and less "alternative documentation (Alt Doc)" or Stated Income Mortgage programs since the mortgage meltdown in the state. The few that exist have a few restrictions but you should check with Mortgage Rates BC Mortgage Broker to see if a new product has came out and we haven’t updated the site.

  Tax deductible mortgage. 
  If you are self-employed, have at least 20% equity in your home, and are in a higher tax bracket, you need to consider making your home mortgage tax deductible. There is no added risk to doing this.  All you need to do is to learn how to restructure your cash flow so that you make your home mortgage tax deductible. There are many types of people who receive income that is completely or partially un-documented, such as:

  • Small business owners - store keepers, restaurant owners, builders, taxi cab drivers etc.
  • Sales people who receive income on commission
  • Trades people - plumbers, electricians, carpenters, painters
  • Individuals employed in the hospitality sector - waiters, waitresses, and hotel employees, etc.
  • Professionals - actors and actresses, freelance writers, athletes, counselors, etc. 
  • Contract employees - software developers, business consultants, etc.

  Self-Employment Mortgage Guidelines Canada with Genworth - Alt A

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  Self-employed borrowers

• 2-years self-employed tenure is recommended, however will consider borrowers with less than 2-years BFS tenure depending on the length and type of previous employment.
  
  One (1) form of written third party documentation confirming self-employment tenure must be on file
  
  Lender is required to capture the borrower's "Stated" income and submit to Genworth as part of the application.
  
  The "Stated" income should be reasonable based on the type and size of the business, and should be able to service the required mortgage as per the GDS/TDS Guidelines above
  
  Reasonableness of the income is a critical factor in the approval of the loan as is the borrower's ability to service the loan and all other obligations
• Commissioned sales

A commissioned sales applicant is defined as someone who derives 100% of their income from a commissioned source

The lender is responsible for ensuring that the borrower is a commissioned sales applicant as defined above, with a minimum of two years tenure, for example by way of letter of employment, T1 Generals or T4's

Lender to ensure borrower(s) have no tax arrears (recent NOA will suffice)

Commissioned sale applicants who are paid a salary plus commission are NOT eligible under this program and must qualify in the usual manner (e.g. GDSR/TDSR and income confirmation will be required)

Lender is required to capture the borrower's "Stated" income and submit to Genworth as part of the application.

The "Stated" income should be reasonable based on the type and size of the business, and should be able to service the required mortgage as per the GDS/TDS Guidelines above

Reasonableness of the income is a critical factor in the approval of the loan as is the borrower's ability to service the loan and all other obligations


Corporations

A limited company or corporation is a legal entity, separate from the persons (all shareholders) who own it. The business can own assets, enter into contracts and conduct business transactions in its own capacity. The company is called limited because the liability of the shareholders is limited to their investment. All provincial Corporations must obtain articles of incorporation from the province in which they are registered or may be federally incorporated. The applicant's personal income will be reported by T4 from the corporation.

Documentation requirements - Any one of the following:
Articles of incorporation
Business Credit Report
Audited Financial Statements for the last 2 years, prepared and signed by a CA
Plus a recent Notice of Assessment or a signed affidavit by the borrower(s) to confirm no income tax arrears


Sole Proprietorship

A one-owner operation where the owner directs all the activities of the business, assumes all authorities and obligations, and is liable for its business debts. The sole proprietor income is reported to revenue Canada on the standard tax return (T1 General) together with Revenue Canada's required statement of business or professional activities.


Documentation requirements - Any one of the following:
Business License
Business Credit Report
GST/HST Return Summary
T1 Generals with statement of business activities attached for a minimum 2 years
Audited Financial Statements for the last 2 years, prepared and signed by a CA # Plus a recent Notice of Assessment or a signed affidavit by the borrower(s) to confirm no income tax arrears

 

 

• Private Mortgages for Self Employed / Undocumented Income
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  If the Self Employed borrower has imperfect credit or unverifiable income, there are specialty lenders and Private Mortgage Lenders that will consider self-employed individuals. In the most favorable cases rates are slightly higher than bank rates. These mortgages are available so contact a mortgage brokers from Mortgage Rates BC to see what we need to qualify you.
  If the business person can provide full documentation, they can qualify under traditional lending programs. These mortgages can be either conventional or high ratio.

Mortgage Solutions

No matter where you live,your Vancouver BC Mortgage Broker can provide you with the right Mortgage information for now and for your future.   Are you Self Employed and looking to Buy your First Home in Vancouver BC or Refinance your current mortgage in Kelowna BC or Consolidate Debt  in Victoria BC we have the tools to get the job done for you no matter where you live.
We have the experience to handle the most difficult residential refinancing too. If you need Self Employed Mortgage Help in Surrey BC or a 2nd Mortgage in Burnaby BC or if you are facing a possible foreclosure in Richmond BC, your self employed mortgage broker has the knowledge to inform you of your options and the lenders that have tailor made solutions to Help.
We are just a click away on our Contact Application or by phone at 778-839-3963. Call or Click today and let us handle your Mortgage request for you and have the peace of mind knowing you have a professional on your side.

Self Employed Mortgage lenders and rates are provided by calling your Vancouver BC Mortgage Broker through Mortgage Rates BC.