Before the world’s economic crisis, a self-employed person could get a mortgage without difficulty. Today, things are a little more complicated for the entrepreneur as lending rules have tightened and the banks are not as willing to finance non-traditional borrowers.
In 2012, the Office of the Superintendent of Financial Institutions introduced the B-20 guideline requiring federally regulated banks to tighten up their lending processes. Mortgages for business owners and self employed entrepreneurs were just one of the practices affected.
Most banks now require the following from the self-employed:
1) Two years of financial statements.
2) Your latest notice of assessment from Canada Revenue Agency.
3) Proof your GST and HST are paid.
4) Your credit score.
5) Proof that you are the owner of the business.
All is not lost, a mortgage broker can help you with the paperwork and process of securing a loan.
If you’re self employed, contact the team at Mortgages of Canada to review all your mortgage options. There is no obligation to apply so call today.