Each year more and more Canadians are self employed. Many are shop-owners, landscapers, construction contractors, however many are simply contractors to larger companies, such as many of the large Oil or Telecommunications companies, that are similar to employees.
Something that many do not think about when making the decision to start a business is how that will affect your applications for credit. The reason it is so difficult for self employed individuals to finance things such as their mortgage is that their provable income is net of expenses that are used to reduce the taxable income. Unfortunately most banks don’t recognize this income that has been deducted.
At Mortgages for Less we are self employed too and understand your situation. We have lenders that look at your credit history instead of tax assessments while allowing you to declare your real income rather than using only your tax income. In many cases you can still get the most competitive rates too!B We can find the right product for you.
Low Documentation and Low Down Payment
With the backing of CMHC, Genworth or Canada Guaranty, several of our lenders are able to offer you purchase financing with only 10% down payment. You do not need to prove your income for this mortgage.
We look at:
- Credit History — no bankruptcies, credit counseling or foreclosures. Minimal or no late payments.
- Work History — we need to see how long you have been in your line of work, even if not much of it is “self employed”.
- Down payment must be from your own savings and provable.
For this product our best rates apply!
With our Equity Mortgages we can finance up 80% of your home on a purchase or 75% on a refinance. Because there is more equity we can deal with credit challenges. Rate is determined by your credit history. Down payment can be borrowed or a gift. You must be self employed for 6 months minimum for this program.