Your business is a success and it seems reasonable to believe that ownership of your own home is possible. Yet, you’ve approached a lender and they just don’t seem to be interested. Perhaps they have required extra documentation or asked you to pay higher interest rates.
At Best Mortgages Vancouver we have arranged mortgages for many self employed people often times with the same great interest rates and terms enjoyed by salaried employees.
To find out more, simply click here and a Best Mortgages Vancouver Mortgage Specialist will call you to talk about the many mortgage options for self-employed people.
Many small business owners and contract workers cannot verify sufficient earnings through tax statements and T4 slips simply because much of their taxes are paid through their companies or written off through the various deductions available to the self-employed.
We know of lenders however who understand your situation and who are prepared to offer financing up to 100% of the value of the property to based on your stated income as opposed to your reported income for tax purposes
As a business owner you have a few more things to consider than a salaried employee.
Not only do you have to think about what type of mortgage is right for you but you should also be taking into account how to structure your mortgage to save the most money on your taxes. Our mortgage specialists understand business people and can work with you or your accountant to make sure you to get the most tax savings possible from your mortgage.
What are the options?
For financing up to 75% of the value of your home or the purchase price if you are purchasing many lenders will provide mortgages with competitive interest rates that have no additional fees or insurance premiums!
Financing between 65% and 95% is possible. Most lenders will require that these loans be insured by either Canada Mortgage and Housing (CMHC) or Genworth Financial.
With CMHC you are required to provide proof of your income via tax returns and notices of assessment but the advantage is that the Insurance premium for this program is the same as for salaried employees. And while they do look at the net income reported after you have claimed your expenses they do provide two options to boost the amount that can be used. The first is a simple gross up of 15% of the previous three years average income reported on line 150 of your Income Tax notice of assessment. The other option is to take the net income reported on line 150 and add back some of the expenses claimed such as automobile, office in the home and depreciation expenses.
Both CMHC, AIG and Genworth Financial offer a programs that allows self employed and people who are paid 100% on a commission basis to qualify for the mortgage on the basis of their stated income. No proof of the income is required but it must be reasonable based on the type of work. You will be asked to provide proof that you are self employed and have a good credit score in order to qualify for this program. Although there is a slightly higher insurance premium for this program you will get great interest rates.
In addition to the programs offered by CMHC and Genworth there other lenders who offer similar programs that are based your stated income. These programs often times require less documentation than what is required under the other programs but in return you could pay a higher interest rate or lender fee.
Which option is right for you?
The best way to determine which option is going to be the best for you is to talk to one of our Best Mortgages Vancouver mortgage specialist so they can do a no cost no obligation review of your situation. Click here to go to our contact page.
What information is required to complete our review?
While it is possible to arrange a mortgage with little or no documentation: these mortgages may not be the best option for you. In order for us to provide you with the best possible advice we suggest you put together the following information:
- previous three years tax returns including your statement of business activities
- previous three years notices of assessment from your income tax returns
- if you are incorporated copies of the companies previous three years of Financial Statements
After completing a review of these documents we will be able to make sure that you are getting the absolutely best mortgage for your situation.