All loans are subject to credit and underwriting approval. Further documentation may be requested from you. Canadian Cash Solutions is not a lender but a lead referral company and may be compensated for its referrals. Loans range from $300-$2.1 million (additional for mortgages) with terms of approximately 2 months to 72 Months (additional for mortgages). APRs range from 2.5% to 29% and will be dependent upon our partner's assessment of your credit profile. For example, on a $1200 loan paid monthly over 12 months, a person may pay $114.05 per month for a total of $1368.64 over the course of the entire loan period. This amount includes our partner's optional loan protection policy. In the event of a missed payment, you are subject to an insufficient funds fee from about $30-$70 (dependent on the lender). Once a loan is in default, your payment plan will be terminated. Different collection methods may be employed to collect your remaining balance. Failure to pay will result in possible legal action and any outstanding debt may be pursued by the full extent of legal options. Our lenders employ fair collection practices.
Note: Canadian Cash Solutions and its affiliates will never ask or charge you any pre-qualification or application fees. Canadian Cash Solution is not a lender but a leading referral company in the finance industry. Canadian Cash Solutions and all of its financial partners adhere strictly to Canadian laws and regulations. To protect yourself, read more on this topic here.
How To Get A Mortgage While Being Self-Employed In Canada
Self-employed and have a credit score over 680?
You can pretty easily get a mortgage in Canada. If this is perhaps not the case with you, we’ve got some solutions.
Today, things have become a little more complicated for entrepreneurs looking to borrow money. The lending rules have tightened and banks are no longer very keen on financing non-traditional borrowers.
When looking to find a mortgage, one must start with organizing their paperwork. Most lenders are known to require at least two years of financial statements, the latest notice of assessment from Canada Revenue Agency, evidence that your GST and HST are paid, your credit score and proof that you are the owner of the business. The easiest way to plan is to write off fewer expenses in two years that lead up to the purchase of the property. Even though, this would increase the personal taxes that you pay, but your income would be shown as higher and would easily qualify you for obtaining the mortgage.
Your next step should be to contact a mortgage professional to ensure that you have all the necessary paper. A mortgage broker can come in very handy, as they know the requirements for mortgage insurance and understand that particular lenders vary. It is also suggested that you set up your finances though a certified accountant, as he would know what to look for and would understand the implications. Also, many lenders would want to see your income being submitted through a professional.
Additionally, self-employed workers should consider offering a large down payment. When lenders offer a down-payment more than the standard 20 percent, the lender responds with a greater flexibility.
It is to be noted, previously self-employed workers were given some flexibility and were asked to fill out a signed income declaration along with a proof of self-employment. Self-employed workers were also allowed to apply for any of the “stated income” mortgages at any bank, with the differing lending.
However, a major change to one of the three mortgaging insurance firms had called for not allowing stated income application. All applicants are now required to meet the standard verified income requirement. It is to be noted, federally regulated banks are allowed to lend only up to 65 percent of the purchase value to entrepreneurs. Any financing higher than often requires a mortgage default insurance though one of the three mortgage insurance firms in Canada.
On the other hand, certain lenders like Genworth allow self-employed individuals to add some of their deductions back into their earnings. They have programs in place that assist those that have been in the business for at least two years and are unable to provide traditional roof of their income. Under the program, income is then based on a reasonable amount for your business and sector.
Moreover, as your last resort, if a bank turns you down for a conventional loan on the basis of you being a low income business owner you can turn to a private mortgage lender for financing.
Hence, being self-employed should not mean that you should not be able to buy a property.