Loans taken through referrals of Canadiancashsolutions will be subject to credit and underwriting approvals. Canadiancashsolutions is a leading mentor company and not a lender. Canadiancashsolutions only works with financial service providers that adhere to Canadian laws and regulations. Loans disbursed are from $500-$35,000 with terms from 4 months to 60 months or longer. APRs expand from 2.99% to 46.96% and will depend on our lending partner's assessment and evaluation of your credit profile. For instance, on a $500 loan amount to be paid over a period of 9 months, a borrower will pay $81.15 per month totalling $730.35 over a period of 9 months (Optional loan protection policy included). An insufficient fund fee of $45 will be charged per missing payment ( fee may vary depending on the lender). Failure of any sort shall lead to termination of the payment plan. For recovery of the remaining amount, collection methods will be used.
Fair recovery and collection practices are employed by our partners.
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.
More 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.
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