" Get a mortgage as a Self-Employed, on Commission Income,
Contractor or Consultant! "
For people with stated income (self-employed, commissioned agents, contractor or consultants), getting mortgages can pose a few challenges. Because they do not have the regular income and stability of a salaried employee, the most challenging part lies in the difficulty in providing traditional third party income validation, or in short, proving income.
If you fit this category, we have stated-income products we can offer you. Flexible financing options including extended amortizations are available - with loan-to-values of up to 95% for purchases and 90% for refinances.
The following types of applicants that may access these products incude:
- Commissioned sales people - those who receive 100% of their income from commissions. These include real estate agents, insurance agents, etc.
- Salary, plus commission or unverifiable income - usually common for bartenders, waitresses, hairdressers/hairstylists, doormen, concierge, plumbers, electricians, carpenters, etc.
- Self-employed whether as a sole proprietor or corporation
- Consultants or Contractors
In order to get the lowest rates, the mortgage is recommended to be insured by Genworth or CMHC. They have specialized programs to help applicants in these categories get a hi-ratio mortgage at regular interest rates when purchasing a property or refinancing an existing mortgage.
Minimum requirements by either or both Genworth and CMHC may include:
- Minimum 2 years in same type of work, even if not in a self-employed capacity
- For borrowers with documentation to support their income, they need to have their Notice of Assessment, audited financial statements or (financial) statements prepared by practising accountant, to prove income. Income is determined by averaging the income of the previous two year period or using most recent year if income has increased year over year for four years or more.
- For borrowers without traditional forms of income validation, the insurer will use predictive models as an indicator of the likely reasonableness of the borrower's stated income. They also need to have a Canadian credit history, to be permanent residents of Canada and have no income tax arrears. Their income taxes need to be current.
- A good credit score is required and no prior bankrupts must showing on the credit bureau.
The length of time in the industry, whether or not in self-employed capacity, is an important factor. Even if you have less-than-perfect credit rating, we can still help you obtain a first or second mortgage. Some of these programs may require you to pay us a fee which will be disclosed to you in writing before we proceed with arranging for the mortgage.
Need help getting a mortgage as a self-employed? Talk to us first. We'll make sure that you get the best advice and mortgage product to fit your needs.
