Self-employed? Mortgages are Easier Than Ever!

More Canadians than ever before - almost 20% of workers, according to Statistics Canada - now fall into the category of self-employed. Until recently, it could be difficult to obtain a mortgage if you weren't on a company payroll. But lenders and mortgage insurers are responding to the unique needs of the self-employed, resulting in more options than ever before.

Easy does it

You may be surprised to learn how easy it can be to obtain a mortgage for a primary residence, as a self-employed person.

You will also discover that you have the choice of most options in the marketplace, with terms of up to 40 years, fixed- and variable-rate mortgages, and ever high-ratio, insured mortgages.

What's changed: income statements

Most notably in recent years, many lenders have loosened their documentation requirements for stating self-employed income. While qualifications vary, most mortgage products currently on the market have a few minimum requirements.

• You must have been self-employed in the same line of work for at least two years. Proof required: Business licence or articles of incorporation; income tax returns; statement of business activities; or financial statements.
  
• You must have a good personal credit history. Proof required: A standard credit check.


• You must have no tax arrears outstanding. Proof required: A recent Canada Revenue Agency Notice of Assessment.

As well, some lenders require that the property meet certain conditions, and most will need a property appraisal to confirm value.

As your mortgage professional, I have access to the widest range of lenders that offer financing solutions for the self-employed. Let's discuss your needs to find exactly the right product for you.

Lisette Amalfi Harris, AMP