Mortgages for the self-employed
From a trusted name in Ontario
Simply put...
A self employed mortgage is a residential mortgage on a home or a commercial mortgage on a commercial property that will be owned or purchased by an individual who is self-employed. If you’re self-employed and are having trouble getting approved for a self employed mortgage Ontario or a self employed mortgage Toronto through one of the big banks or trust companies, you are not alone.
Over the years, traditional lenders have implemented a number of very strict lending rules and the banks have cracked down on self employed mortgage for those people who are entrepreneurs with no reportable income.
This has become extremely frustrating to those applicants because they may have a real estate deal pending a financial condition and the banks are saying “no” because of new, tighter rules.
This is where private lenders in Ontario can help you, such as the expert mortgage lenders at Canadalend. We can help with loans for self employed individuals, so you can get a mortgage that is best suited for you at the best rate.
How we can help:
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Home renovation and construction projects
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Individuals who can’t prove their income by conventional means
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Credit management or recovery from bankruptcy
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Income tax, property tax, bills or mortgages arrears
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Unique & “non-conforming” properties
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Stopping a power of sale
How stricter lending rules affect self-employed Canadian
Reduced amortization periods. Entrepreneurs are considered risky. Higher down payments of up to 30%
In addition to reducing the amortization period and raising the minimum down payment required to purchase a home, in 2014, the Canadian Mortgage and Housing Corporation (CMHC) discontinued self-employed mortgages for those who are self-employed without third-party validation. Before that, self-employed Canadians and contractors only had to state their income. Not anymore.
This squashed the home ownership dream for hundreds of thousands of Canadians. That’s because 2.76 million Canadians are self-employed; a whopping 15% of the country. And more and more Canadians step into the ranks of the self-employed every year.
Unfortunately, the big banks don’t really respect entrepreneurs and view them as risky. Because you are a self-employed entrepreneur, and might draw a smaller income for tax purposes, the bank thinks there’s a greater chance that you’ll default on a self employed mortgage Ontario or a self employed mortgage Toronto.
Canadalend.com not affected by strict mortgage rules
Canada’s tighter lending rules only impact those who turn to Canada’s big banks. Non-traditional lenders that work with Canadalend.com, are not bound by the same mortgage rules as the big banks. That’s a fact that’s becoming more evident to an increasingly larger percentage of the population.
A growing number of Canadians are turning to self employed mortgage brokers like Canadalend.com who work with private mortgage lenders for their no-income verification mortgages in the Greater Toronto Area. Upwards of 10% of all mortgages originate with non-traditional lenders. That share of the market has grown significantly since the 2008-2009 recession.
Mortgage brokers who deal with private lenders instead of banks, like Canadalend.com, fill an important void left by the highly regulated banks. We give potential borrowers the chance to secure a self employed mortgage or no-income verification mortgage.
Getting a mortgage from Canadalend.com
If you’re an entrepreneur and are being prevented from getting on the property ladder by the big banks, the independent, licensed mortgage agents at Canadalend.com can help. Because Canadalend.com is independent, they have access to hundreds of different lenders—many of whom specialize in loans for self-employed individuals who don’t have a long enough income track record, are single income earners, or simply may not qualify for the bank’s stricter terms.
The fact is, you can still get a self-employed mortgage—it’s just going to take a little more effort. At Canadalend.com, we can help you determine what kind of mortgage is best suited to your financial and lifestyle needs.
If your income doesn’t meet the unreasonable requirements set forth by the big banks, other lenders are willing to step in and help you secure a no-income verification mortgage. That’s where Canadalend.com comes in. Lots of lenders look for different ways to help those who are self-employed increase their mortgage eligibility.
Why? The private lenders that Canadalend.com works with understand that those who are self-employed look for ways to minimize their taxable income.
Some lenders do not ask for traditional proof of income, instead they rely on bank statements. In some cases, if you’re self-employed or your income fluctuates, a lender will tack, for example, 15% on to your reported income to increase the amount you can borrow, if you can show business deductions total more than that.
Since private lenders do not follow the same rules as the banks, they can also extend a self-employed mortgage of up to 95% of the purchase price to someone who is self-employed; all without the need of costly default insurance.
We offer a range of solutions for all your mortgage needs!
With our years of experience we’ve seen it all, so we’re used to fine-tuning our services to unique financial needs. We understand that for most people their home is the most valuable asset they will ever own, so it’s vitally important that they get the service they need.
At Canadalend.com we are dedicated to five-star customer service. Get in touch with us and a lending specialist will help set up an appointment for a free personal consultation. We will help you review your self-employed mortgage options and find the self-employed mortgage Ontario solution that fits your needs!