, accounting for eight per cent of Canadian mortgages in 2018, and an even greater share in the hot real estate market of Toronto.
Caird said it’s usually more financially advantageous to “expense the heck out your business” and show less income. Proving a sufficient track record of income to qualify for a mortgage can be the biggest challenge for people who work for themselves.“Assuming a self-employed borrower had great credit and ample equity, we used to be able to simply state their income to the bank and show a notice of assessment to prove no taxes owing,” said Robert McLister, found of mortgage news website RateSpy.
“We know self-employed Canadians make up about 15 per cent of Canada’s labour force and so we want to make sure that any difficulty that they have in qualifying for a mortgage is mitigated and that we’ve got some options for them.” Genworth Canada and Canada Guaranty also have programs to help self-employed borrowers, but require the business be open for at least two years.The mortgage broker’s task is to convince lenders that the borrower is a good credit risk by adding back specific deducted expenses to net income to improve the debt-to-income calculation, said Caird.
globeinvestor Why are lenders giving 25yr mortgages? We're all dead in 12yrs...that is not a smart investment ...smh