Mortgages are tough to qualify for when you are self-employed or commissioned. Even with a good credit history, getting a mortgage from a major bank is sometimes frustrating.
Over 20% of Canadian income earners are self employed, business for self or are 100% commissioned. With this large of a segment of the population working for themselves you would think the mortgage banks in Canada would be a little more accommodating.
Well they have! Finally.
Most people in business write off expenses before declaring their income. That's the advantage of being in business for yourself. You pay income tax on a lesser amount but when you need to prove income for a mortgage approval, your tax returns make it look like your income is low and you can't afford the mortgage you deserve.
Qualifying for a Low Documentation Mortgage is easier than you think. You can purchase a new property or re-finance your existing home up to 90% of its appraised value. The lender bases their mortgage approval on your good credit history instead of your net income.
Requirements for a low document mortgage:
A clean credit history with no slow payments, collections, judgments or bankruptcies
Proof of self employed status for the last 2 to 3 years through Incorporation papers, GST returns or business registration papers
Property must be located near a major urban centre
The last 3 years Notice of Assessment (NOA) from Canada Revenue Agency to prove no tax owing
If your credit score is low you may be required to provide the last 12 months of bank statements to show regular deposits to prove your 'stated income'
We regularly deal with equity mortgage lenders and sub-prime mortgage lenders. We work with unique situations everyday, give us a call first!
Contact us today about a Low Doc or No Income Mortgage!
Thursday, December 29, 2005
Posted by Rachelle Czartorynskyj, Mortgage Broker at 9:57 am
What is a Mortgage Broker?
A mortgage broker is an independent professional who works as the liaison between the borrower and the lender to negotiate mortgage loans. We are mortgage loan specialists. Whether you are purchasing a new home, switching your mortgage, or refinancing you existing mortgage, many factors must be considered. Its our job to analyze specific needs and find the best mortgage product that satisfies your budget and goals.
Why use a Mortgage Broker?
We have access to numerous lending institutions and investors. We will make sure to get the best loan possible: the best interest rate, conditions, and prepayment privileges. You won't have to deal with any financial institution yourself. We deal with the same lenders you're used to dealing with. Including the 'Big Banks' and Trust Companies. We deal in great volume of mortgages and pass on the savings to you. We also deal with some innovative broker-only lenders who can offer even more attractive rates and features.
I've Been Turned Down by the Bank. Can You Help?
Maybe. Don't get discouraged if you are turned away by a bank - you might still be able to obtain a mortgage. Your bank has a certain set of criteria that you don't meet but other lenders, including some large institutions, may still take you as a client. We can advise you on how to fix your current situation so that you may qualify for a mortgage in the near future. We also have access to private lenders ranging from individual investors to mortgage investment corporations that use a different set of criteria to make mortgage decisions.
How Fast Can a Mortgage Broker Work?
We strive to provide you the fastest and most reliable service possible. Operating with the up to date software and technology, we can offer a quick turn around time on applications. We will explain your terms and conditions including the interest rate, prepayment privileges and clarify all of your questions. We build our reputation on timely service, reliability, creative thinking and a conscientious attitude towards your needs. At the very least we'll treat you like a human being, and not a number!
Posted by Rachelle Czartorynskyj, Mortgage Broker at 9:37 am
Sunday, December 18, 2005
Build or re-build your credit in Canada, even if you've had credit difficulties in the past, or have never had a credit card before! An excellent opportunity to establish your credit rating.
Virtually all Canadians are approved. Find out more here...
Posted by Rachelle Czartorynskyj, Mortgage Broker at 10:20 am
Our Mortgage Payment Calculator will show you how different rates and payment frequencies can affect your mortgage.
How much can you afford? What payments can you expect to be making on your mortgage? Simply fill in the form and click the "Compute Payment & Balance Summary" Button.
Posted by Rachelle Czartorynskyj, Mortgage Broker at 9:52 am