How to get a mortgage for self-employed in Vancouver BC.
October 7, 2024 | Posted by: Alex Vinarski
What are the options for self-employed to get a mortgage in Vancouver BC.
- 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.
- 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.
- 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.
- 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.
- 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.
