Posted by: dan

Tagged in: Untagged 

Written By
Tony Dhami
Verico Designer Mortgages Inc

You work hard, you make good money, you have a good credit history, you're independent, you're successful but you're self employed and you can't get a mortgage from the major banks. Right? Wrong?
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 take notice. Well they have!


Most people in business write off expenses before declaring 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 (Low Doc or No Doc or Alt Doc) 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 an alternative low document mortgage:
• A clean credit history without slow payments, collections, judgements 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'
No Income Mortgage? You want to purchase a property or refinance your existing home but you have no income. We can get you a mortgage approval for up to 75% of the property's appraised value with little or no income and less than perfect credit.
We regularly deal with equity mortgage lenders and non-conforming mortgage lenders. We will take the time to work with unique situations and tough deals.