Self-employed mortgage in Canada

[Ethan William]

Hi,

I have few queries to ask regarding the self-employed mortgage in Canada. I'm born in Toronto(Canada). But, after the marriage, I got settled in Quebec. I started a business three years ago. My business partner is from Mississauga. Will I get a self-employed mortgage? I was in doubt because my business has just completed three years. And as this is a short time, will it be a problem for getting a self-employed mortgage? It would be better if I can get a valid reply. I have been asking many of my business mates regarding this question. But, none of them have a clear idea. And I think this is the best platform where I can put up this question.

I have heard that for achieving a self-employed mortgage in Canada, we need:

             1. A clean credit history

             2. The property to be located in or near a major center.

            3. Proof that we are self-employed.

Anything other than this is required? Feel free to discuss your views on this and put forth your opinions. Which all documents are required? Any idea?

As always, your suggestions and replies will be highly appreciated.

Thanks in advance

[WhoCares1000]

I know more about this in the USA than in Canada but certain things might be similar. First thing is you will probably need a mortgage broker that understands manual underwriting. The automatic systems are designed for those with traditional jobs and you do not fit into it.  You will probably need to show how much money you earned from the business using tax returns and business accounting records. You will also need so show that you do pay your bills on time and have done so for many years. Manual underwriting takes up more paper than the automated process AND takes more time. It looks like the period for self-employment is 2 years although if you present 3 years, it will help you case rather than hurt it. What the lender wants to see is stability.

Here is a Canada link that could help:
http://homeownership.ca/the-buying-process/mortgage-products-approval/underwriting-insights-what-every-homebuyer-should-know-before-applying-for-a-mortgage/