How to get a mortgage for self-employed in Vancouver BC.

June 14, 2024 | Posted by: Alex Vinarski

What are the options for self-employed to get a mortgage in Vancouver BC. 

  1. If last 2 years income on Notice of Assessment NOA (line 150) is high enough to qualify for the mortgage, then this is considered as regular mortgage regardless if borrower is self-employed or employee.  Minimum down payment 5%, best rates, CMHC fee with down payment with down payment less than 20%. Documents required: 2 years NOA and T1 Generals, business registration.2.
  2. If income on NOA is not high enough clients can use CMHC program for self-employed. Lenders might add 15%-20% to their income, or use add back to the income for business use of home, car expenses, and capital cost allowance.Minimum down payment 10%, best rates, CMHC fee with down payment less than 35%. Documents required: 2 years NOA and T1 Generals, business registration, Financial statements. 
  3. Net Worth program. Lender will use income from NOA, plus add to the mortgage amount of liquid assets what clients have. Minimum down payment 20%-35%, best rates, no mortgage insurance fee. Documents required: 2 years NOA and T1 Generals, business registration, statements showing liquid assets or investments.
  4. Stated income program. Lender will use income stated by the borrower, but it has to be justified by deposits to business account. Minimum down payment 20%, rates from 5.99%, and 1% lender’s fee applied as well. Documents required: 6-12 months bank statements showing deposits, business registration. This program works even for clients with bad credit. 
  5. Private mortgages. No income verification required. Minimum down payment 25% ( 20% on exception). Documents required: application, appraisal, credit bureau ( any credit will be considered). Don't need to provide any income documents or tax return. Rates from 8%, plus lender/broker fee. 

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