Call 1-855-695-9250 or 613-695-9250

Committed to being Canada’s Best Broker

Mortgages for Self Employed

 

STATED INCOME

This product is designed for borrowers with very good credit history of a min of two years. Eligible borrowers also typically own a small size business for a minimum of two years, which can be confirmed via a third-party arm’s length document. You must be up to date on your latest tax year and must declare their annual income that is reasonable based on the industry.

Eligible Properties:
  • Maximum 2 units where 1 unit must be owner occupied
  • New construction covered by a lender approved New Home Warranty Program
  • Existing resale properties
  • Readily marketable residential dwellings, located in markets with demonstrated ongoing re-sale demand
  • Estimated remaining economic life of the property should be a minimum of 25 years

 

Maximum Property Value:
  • LTV > 80%: Less than $1,000,000

 

Terms/Qualifying Interest Rate:
  • Fixed and standard variable rate mortgages are permitted
  • For loans with fixed rate terms greater than or equal to 5 years, the contract rate is used
  • For loans with fixed or variable rate terms less than 5 years, the qualifying interest rate is the greater of the contract rate or 5-yr benchmark / posted rate

 

Premium Rates for insured Mortgage Loans:

The premium payable will be the lesser of the premium as a % of the total new loan amount or the premium as a % of the top-up portion on the additional loan amount (if existing insured) based on the rates below:

LTV Ratio Purchase Premium Rate Refinance Premium Rate Top-Up Rate
Up to 65% 0.90% 0.90% 1.75%
65.01% – 75% 1.15% 1.15% 3.00%
75.01% – 80% 1.90% 1.90% 4.45%
80.01% – 85% 3.35% N/A 6.35%
85.01% – 90% 5.45% N/A 8.05%

 

Borrower Qualification:
  • The income reported by the borrower must be reasonable based on the industry, length of operation and type of business
  • Strong credit profile with minimum 2 trade lines with at least two (2) years history
  • No mortgage, installment or revolving credit delinquencies appearing on the credit bureau in the past 12 months
  • No reported defaults on residential mortgages for the past 7 years
  • No previous bankruptcy
  • Minimum 5% down payment from the borrowers own savings. The remainder may be gifted from an immediate family member. Borrowed down payments are not permitted.
  • Borrowers with commission income are ineligible
  • Lender to ensure borrower(s) have no tax arrears
  • All applicants used to qualify must occupy the property (If two unit property, one unit must be owner occupied)
  • Spousal guarantors acceptable

 

Credit Score must be 680 or better GDS TDS
35% 42%

 

Documentation Requirements:

Sole Proprietorship

  • A one-owner operation where the owner directs all the activities of the business, assumes all authorities and obligations, and is liable for its business debts. The sole proprietor income is reported to revenue Canada on the standard tax return (T1 General) together with Revenue Canada’s required statement of business or professional activities.
  • Documentation requirements – Any one of the following must confirm at least two (2) years business-for-self tenure:
    • Business License
    • GST/HST Return Summary
    • T1 Generals with statement of business activities attached for a minimum 2 years prepared by an arm’s length third-party
    • Audited Financial Statements for the last 2 years, prepared and signed by a CA
  • Plus a recent Notice of Assessment or a signed affidavit by the borrower(s) to confirm no income tax arrears (Note: in the province of Quebec, both federal and provincial NOA’s will be required or a signed affidavit by a notary or commissioner of oath)

Corporations

  • A limited company or corporation is a legal entity, separate from the persons (all shareholders) who own it. The business can own assets, enter into contracts and conduct business transactions in its own capacity. The company is called limited because the liability of the shareholders is limited to their investment. All provincial Corporations must obtain articles of incorporation from the province in which they are registered or may be federally incorporated. The applicant’s personal income will be reported by T4 from the corporation.
  • Documentation requirements – Any one of the following must confirm at least two (2) years business-for-self tenure:
    • Articles of incorporation
    • Audited Financial Statements for the last 2 years, prepared and signed by a CA
  • Plus a recent Notice of Assessment or a signed affidavit by the borrower(s) to confirm no income tax arrears (Note: in the province of Quebec, both federal and provincial NOA’s will be required or a signed affidavit by a notary or commissioner of oath)

 
For more information contactThe Wilson Team or call 613-695-9250

  • Terms
  • Posted Rates
  • Our Rates
  • Variable Rates
  • 2.70%
  • 1.80%
  • 1 YEAR
  • 2.99%
  • 2.29%
  • 2 YEARS
  • 2.84%
  • 2.34%
  • 3 YEARS
  • 3.39%
  • 2.39%
  • 4 YEARS
  • 3.89%
  • 2.69%
  • 5 YEARS
  • 4.64%
  • 2.29%
  • 7 YEARS
  • 3.39%
  • 3.19%
  • 10 YEARS
  • 6.10%
  • 3.79%

Free Reports

Download a list of useful references.

FEATURED PROPERTIES
3 found. Viewing page 1 of 3. Sort By: Default
Prev
Next
3 found. Viewing page 1 of 3. Sort By: Default
Prev
Next
View all properties...
Get Social

LAND
TRANSFER

Calculator

Calculate your Taxes

Subscribe To Our

Newsletter