Self Employed Mortgages enable the client to qualify for a mortgage based on income that they can and can’t always provide in the traditional manner. The Best Banks Credit Unions & Trust Companies for the Self Employed have innovative products allowing you to obtain Low Mortgage Rates at high level of your homes equity as well as Stated Income Products to help with Consolidating Debts, home renovation, vacations, Business Capital, automobile purchase or whatever reason you need money. (Bad Credit Options too.)
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Here are some basic requirements under the recent changes to qualify for Self Employed Mortgages In Vancouver BC Canada.
- Mortgage qualifying as a self employed individual, you will have to provide proof that you have been in business for at least the last two years. Proof can be in the form of a business license, GST filing, etc. Anything that will prove you’ve been in business for the last two years will do.
- Depending on the LTV (loan to value ratio) of self employed mortgages, you will also be required to provide your NOA (Notice of Assessment) or T1 General proving that you are current and up to date with Revenue Canada.
- If the mortgage is for a new home purchase, you will be required to provide proof of your down payment. The down payment cannot be borrowed or a gift.
April 19th 2010 Changes To CMHC Self-Employed Mortgage:
- Self-employed borrowers without traditional third-party validation of income submitted to CMHC on or after April 9th, 2010 will include different criteria for Mortgage loan insurance applications.
- CMHC has reducing the maximum LTV (Loan To Value) for Self-Employed Mortgages without Third-Party Validation of Income as follows: The maximum LTV is being reduced from 95% to 90% for purchase and portability transactions.
- The maximum LTV is being reduced from 90% to 85% for Refinance.
- The CMHC Self-Employed Product without Traditional Third-Party Validation of Income is intended for self-employed borrowers who have difficulty providing documentation for their current income level. Typically, these are borrowers who recently became self-employed. Accordingly, self-employed borrowers who have been self-employed in the same business for more than three years will not be eligible under this product. CMHC continues to require that the borrower have a minimum of two years of experience in the same field. This can include time spent working as a non-self-employed worker in the same field.
- As CMHC has found that commissioned income can be relatively easily substantiated, borrowers who earn income through commission will no longer be eligible for the CMHC Self-Employed Product without Traditional Third-Party Validation of Income.