Mortgage Options for Self Employed
May 15, 2009 by Adil Virani
Filed under Featured Content
For self-employed borrowers, the general criteria that must be satisfied include:
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2-years self-employed tenure is recommended, however some lenders will consider borrowers with less.
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Proof of self-employment tenure must be on file. For example, business license, T1 General etc.
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The “stated” income should be reasonable based on the type and size of the business.
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Strong credit history and credit score will determine the loan amount that may be borrowed. For example, you could potentially puchase up to 95% loan-to-value (LTV), or do an equity take-out to a maximum of $200,000.
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No reported defaults on residential mortgages for the past 7 years. No mortgage, installment or revolving credit delinquencies appearing on the credit bureau in the past 12 months. No previous bankruptcy
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No gifted/borrowed down payment allowed. |
For more information, look at Genworth and CMHC’s guidelines.
