Mortgages for Self Employed Canadians
Small business is the backbone of Canadian business. Yet when business owners go to get a mortgage they are often considered high risk by traditional lenders.
A new type of mortgage allows Canadian business owners qualify without proving income.
"Entrepreneurs who show their financial responsibility by consistently paying their bills and loans have demonstrated they have the ability to manage their mortgage," continues Falkowski. "Canada's small business owners and independent workers should be rewarded for their good fiscal management rather than penalized." Via The Record
The key in this type of mortgage is to know your limits. Since you can qualify without having to state income, make sure that you are sure you know how much of a mortgage payment you carry easily.
If your income varies throughout the year, base the mortgage payment on the low side to make sure you do not over estimate your ability to make the payments.
March 11th, 2007 at 1:38 am
It is not just Canada, in almost all the countries of the world, small businesses are the majority. Taking loan is fine but the most important thing is know whether one would be able to pay it back with interest.
April 1st, 2007 at 6:06 pm
This is great news! I am a self-employed Canadian and I know how hard it was to get a home mortgages…I needed 25% down! If I had know this option I may have been able to qualify for a home mortgage for less down.