stated income mortgageSelf Employed Mortgage Options For Our BFS Clients

Our Self Employed Mortgage in Alberta is tailored specifically for those who have trouble qualifying by traditional lending standards. Our self employed mortgage options solves the problem of not showing enough income to qualify; we simply don’t ask to see it. We can get self employed clients into a home with as little as 10% down payment. They must have good credit, a minimum of 2 years in business and the stated income has to be reasonable based on gross incomes of the business. In cities with high home prices such as Edmonton and Calgary, these mortgages are imperative for most of our self employed clients.

The interest rates on this product are pretty much the same as our regular rates. Some lenders do charge a small premium for their self employed mortgage options. The default insurance premium is also higher for this product than your standard mortgage. If you are looking for a self employed mortgage and you would like to discuss your options, please call us. Our mortgage specialists specialize in dealing with clients with hard to prove income. Avoid the frustration of dealing with your bank, get a licensed mortgage broker working on your behalf.

Subprime Business for Self Options

Even with the great business for self-mortgage options we offer on the prime side, a lot of clients still can’t qualify due to their self employed status. We have another option for these clients, our non conforming loans. The options we have on the subprime or non conforming side of the business are much less restrictive than they are on the prime side. These include financing clients with less than 2 years self employment, poor credit history, or simply lower credit scores.

As with all subprime loans, the rates are a little higher, however this is a small price to pay for an option where there normally wouldn’t be one. Generally, you do not 20% down for these options however, there are no high ratio self employed options on the ‘B’ side. Talk to us today about our business for self mortgage options.

More and More Canadians are Becoming Self Employed

If you feel like you are the only one having the issue of qualifying because you are self employed, think again. Over 2.8 million Canadians identify themselves as self employed as of 2016 as per Stats Canada. And the workforce is growing every month. Many are leaving the workforce for the freedom, to break the restrains of the 9-5 world. While others, have been laid off or are underemployed and are looking for a better way. Either way, you are all in the same boat when it comes to how the banks look at you.

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Self Employment Statistics in Canada (in Millions)

  • Self Employed in Canada

How Does Stated Income Work?

There is really no set answer for this question, as every lender does it a little differently. Some lenders will take your notice of assessments, gross it up a certain percentage and call that reasonable. Other lenders on the other hand will get right into the business financials to see what a reasonable amount of income would be based on the net income of the company. The big banks are generally less aggressive when it comes to stated income deals.

The most important part of our job when it comes to these deals is knowing who does what, and how much we need to state to make the deal work. Situations where grossing up the notice of assessments will not get us what we need, then finding those aggressive lenders is key to getting your loan approved.

When it comes to bfs mortgages, it is very important that the client has their ducks in a row in terms of filing, credit, savings etc. File strength is very important to get the lender and the insurer on board.