The self-employed were always at a disadvantage when applying for a mortgage or 100% financing for a new home. The difficulty lay in the documentation of their income and lenders were wary of the self-employed, unless they were big names in the business scene. Not anymore. The mortgage industry has introduced the mortgage for self employed plan.
Find A Good Self Employed Mortgage Advisor
A self employed mortgage advisor company should ensure that their clients should get the right mortgage product that suits their individual needs. Moreover, all of the mortgage broker agencies should work with a strict set of values which revolve around the policy of treating customers fairly.
Move Over Traditional Mortgage Schemes
Finally, the self-employed head of the family, man or woman can get a mortgage or financing to buy a home. If you have been longing to buy a home for your family but were held back by the restrictions of traditional mortgage plans, you can now get a mortgage. The mortgage for self-employed is here to make your dreams come true.
This type of mortgage plan is available for refinance and the purchase of a home. Borrowers with or without traditional documentation to show proof of income have to submit different forms. Borrowers with documentation have several options at their disposal whilst borrowers who do not use traditional income validation forms can get 90% for refinance or up to 95% loan-to-value ratio.
Self-employed single parents, particularly women can have access to a mortgage for self-employed. A two-income family can use one income for the loan but with a formal approval of the spouse. In the matter of income tax payment status, the lender inquires if the income tax records are current but does not require documentation but will ask for third party validation.
Now is your chance to get a home loan or a mortgage. Get your mortgage for self-employed available now to all Canadian citizens. If you have an eye on a nice house for your growing family, simply approach a lender about their requirements, and be ready for their specific demands to facilitate your mortgage fast.
Lending Requirements
For you to get approved for a mortgage for self-employed, be ready to show proof of residency; this requirement includes newcomers to Canada. However, none-permanent residents will content themselves with one unit owner-occupied property. Permanent residents and newcomers must have Canadian credit history and must not have incurred income tax arrears to get approved for this mortgage.
If you cannot show proof of income documentation for a mortgage for self-employed, you must get someone, a Canadian resident, to validate your income record. If you have audited income statements, you can establish and confirm income and you must be able to prove that you have been self-employed for at least two years prior to the mortgage application.
Non-full documentation stem from various reasons. The self-employed tax returns do not reflect actual cash flow that would be available to pay the mortgage and stated income does not truly reflect the actual income of the self-employed.
In many cases two-income households, one income is only used to qualify for the mortgage, again the true income is not reflected. Whatever the reasons, still it is best to have full documentation of your income to get better deals. The lender adjusts interest rates according to the documentation presented.
Shop For The Best Rates
You are the boss and it is your money involved, so don’t be scared to ask questions upfront. Backed up with your tax income statement, audited income records, and a good credit rating, you can ask for better interest rates. If you have a not too impressive credit record, you are in no way discriminated from getting a mortgage for self-employed, so grab the opportunity now.
