Self-Employed

Canada has over 2 million self-employed citizens, about 15% of the work force.  Due to how a self-employed applicant reports their income and deduct expenses, these individuals are frequently reliant on stated income mortgages.

A stated income mortgage is where the lender does not verify the borrower’s income by looking at their pay stubs, income tax returns, or other income documentation.  Eligible borrowers typically own a business for a minimum of two years, confirmable via a third-party arm’s length document.

Applicants are essentially asked to declare their annual income, which should be reasonable based on the industry, length of operation and type of business.

These mortgages are intended for self-employed borrowers, or other borrowers who might have difficulty documenting their income using conventional means, such as 100% commissioned applicants.

To offset the lenders additional risk, stated income mortgages often come with higher fees, rates and/or higher insurance premiums.

Enlist the help of a professional to help you navigate through your purchase, renewal or refinance.