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Are you self-employed?

We have your self employed mortgage!!! 

 It is well known that self employed and comissioned individuals have harder time obtaining Ontario Mortgage. Most major banks are using same criteria  for salaried and self employed/comissioned prospects which puts the second group at disadvantage. The self-employed and comissioned individuals can substract portion of their income as expenses, often times making them ineligible for mortgage financing at the big banks and credit unions.

I understand that your net income might not reflect what your repayment capabilities are. And although most big banks and credit unions cut their financing to self-employed applicants there are still lenders who feel the same way we do and we are working with these lenders to provide mortgages to you.

 There are couple of different mortgage products on the market designed for self-employed individuals in Ontario. Depending on your situation some might be better for you than the other and I will take time to review your personal situation before suggesting mortgage product for you but they do have some similar requirements. 

Low Documentation Mortgage

The low documentation mortgage (also called low doc mortgage or stated income mortgage) can be used to finance up to 90% value of the property for both new purchase and refinancing scenarios. To qualify you must be self employed for at least two years. Good credit score is also important to qualify but you don't have to proove your income since eligibility is based on your credit score.

No Income Mortgage

This is another mortgage option available to self-employed individuals which might work better in some cases. This mortgage allows you to finance up to 75% of the property and your credit history does not have to be as perfect as in the case of low documentation mortgage. This type of mortgage can be used for any financial situation.

Some key points to keep in mind when applying for self-emloyed mortgage:

  • Self employed for 2 years or more but enterpreneurs with shorter periods will be considered on individual basis
  • Document confirming self-employment is needed
  • Income stated must be reasonable for the business type and size and must be sufficient to service mortgage and other obligations
  • Self-employed income must be stated on the application
  • Better credit score might get you better interest rate

If you would like to receive a free quote or need professional advice contact me today!

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Walter Pawlowski Ontario Mortgage Agent M11002486