You work for You, So Should Your Mortgage

[x_text class=”center-text “]Why do major financial institutions make it so difficult for ‘non-traditional’ borrowers? After all, almost 16% of Canadians now work for themselves. And Statistics Canada data suggests that self-employed workers have a higher median net worth than salaried workers.[/x_text]

Timing was Everything.

[x_text class=”left-text “]Before the financial crisis of 2008, a self-employed person with a credit score of 680 could count on getting a mortgage. However new financial regulations forced federally regulated institutions– like banks – to tighten their lending criteria. Overnight, mortgage requirements became more rigorous.

The big change? Stated income is gone: income verification is now the rule. Since many entrepreneurs take lower salaries to avoid paying tax, this could be an insurmountable problem.[/x_text]

The Difference Between Yes & No

[x_text class=”center-text “]Alternate lenders have responded to this market. Some let borrowers add deductions back onto earnings. Others judge your income based on a reasonable amount for your business sector. Or allow you to get a mortgage of up to 80% of the value without the need for default insurance. The big change? Stated income is gone: income verification is now the rule. Since many entrepreneurs take lower salaries to avoid paying tax, this could be an insurmountable problem.[/x_text]

What You Have to Provide

[x_text class=”left-text “]Most lenders ask for the following:[/x_text]
[x_text class=”left-text “]Two years of financial statements[/x_text]
[x_text class=”left-text “]Your latest Notice of Assessment from Revenue Canada[/x_text]
[x_text class=”left-text “]Proof that your GST and HST are paid[/x_text]
[x_text class=”left-text “]Your credit score[/x_text]
[x_text class=”left-text “]Proof that you are the owner of the business[/x_text]

Let’s make your entrepreneurship pay off.

Call us. We have access to the lenders that understand you.