No Income Mortgages Ė Self employed and commissioned sales people
it was almost impossible for self employed or commissioned sales people to
get financing for a home. Problems consists of
1) Onerous and Intrusive demands: Years of financial records, tax returns
and other paperwork made it difficult, if not impossible, to get a mortgage.
2) Fluctuating incomes: Canadians with fluctuation incomes were treated as high risk clients
and the amount of mortgages they were offered were far below what they could
afford to pay or wanted.
3) Not a long enough history: Business owners and commissioned
sales people that had not been in business for 3-4 years could not provide the required
documents whereas employees need only be at their jobs a few months.
4) Taxable Income Too Low: Many self employed and commissioned
sales people write off a portion of their gross income with legitimate tax
deductible expenses. This can make their net operating incomes look too low
for the lenders. The problem then becomes, "If I write off all my legal expenses
so I pay the least amount of income tax, the lenders wonít like my net income,
and if I donít claim all my legal expenses I will have a higher income that
the lenders will like, but I will pay unnecessary taxes. Either way I have
Finally there is an
answer, No Income Verification Loans
Due to the highly competitive nature of our mortgage market, there are
lenders that offer mortgages specifically designed for self employed and
commissioned sales people. These lenders were smart enough to realise that
there is a huge need for this
type of product considering the high
number of self employed and commissioned people in Canada.
Verification loans mean exactly that. They resolve the 4 problems mentioned
1) They eliminate most of the
documents required making it easier, faster and less intrusive to get a mortgage.
2) Fluctuating incomes from past
years are not even looked at.
3) A long business history is
not needed as years of financial statements are no longer required. Some lenders
like to see that you have been operating for 2 years, but do not need a financial
4) Taxable income too low; these
mortgages are granted on stated income rather than net taxable income. This
allows you to continue to use all legal means possible to reduce your income
taxes without hurting the possibility of qualifying for a mortgage.
New products - Bigger
Up to 90% Financing
As more and more Canadians move from traditional employment jobs to self
employed or commissioned jobs, the mortgage market is motivated to develop
Up until recently No Income Verification mortgages were limited to a maximum
of 75% of the value of the property. Now that GE insurance has joined the
market and provided mortgage default to lenders on No Income Verification
loans, we are seeing loans as high as 90% of the value and still with No
Finally, self employed and commissioned sales people are being treated
with the respect they deserve, fast and easy approvals and good discounted
Call and we would be happy to discuss your options with you.