The Self-employed program is for borrowers who have a hard time at proving their income with traditional income verification. They need to have a proven 2-year history of managing their credit and finances responsibly. Eligible borrowers typically own a small size business for a minimum of two years, which can be confirmed via a third-party or arm’s length document. The borrower is required to declare their annual income, which should be reasonable based on the industry, length of operation and type of business.
Loan-to-value ratio limits:
- Purchase: 90% – 95% LTV
- Refinance: 85% LTV
- Maximum 2 units where at least 1 unit must be occupied as the principal residence
- Existing and new construction
- Readily marketable residential dwellings, located in markets with demonstrated ongoing re-sale demand
- Older homes (pre 1950) must have been substantially modernized and the estimated remaining property (economic) life must be at least 25 years
- New construction must be covered by a lender -approved New Home Warranty Program
Maximum Loan Amounts:
- Metro Toronto, Metro Calgary & Metro Vancouver: $750,000
- Rest of Canada: $600,000
If you are self-employed and want to own your own home, fill out our Quick Quote Mortgage Application or give us a call at 1-877-686-4246 and we will put you in touch with one of our knowledgeable brokers who will be happy to assist you.