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Mortgages for self-employed: What you need to know

Mortgages for self-employed: What you need to know

As a self-employed individual, you may feel that it will be more difficult to get a mortgage. Perhaps you have already met with your banker and they have refused to grant you the loan for one of the following reasons:

  • You haven’t been self-employed for long enough
  • You are not declaring enough income
  • You have a car loan under your business name and it is blocking you
  • Expenses on your tax return have lowered your salary too much

Therefore, when you are self-employed, several reasons can stand in the way of your financial request.

Don’t be discouraged, as a mortgage broker we have access to several lenders with different standards. In some cases, it can even be advantageous to be self-employed. Later, we will see in more detail the advantages of being self-employed when you are looking for a mortgage to purchase a house. For now, I’ll walk you through what you should know before you meet with your banker or mortgage broker.

If you think your net income reported on line 150 of your tax return misrepresents your income, click here. There is a program for you!

Obtain a mortgage loan as a self-employed

The major difference between a self-employed individual and a traditional employee is stability.… LIRE LA SUITE

Reverse Mortgage: Pros and Cons

Reverse Mortgage: Pros and Cons

Dernière mise à jour le April 24th, 2023

Reverse Mortgage

The reverse mortgage is a product that may not always have the best reputation, but it can be of great interest to some people. However, before deciding to opt for a reverse mortgage, you need to be sure you understand what it entails. This article will describe the pros and cons of the reverse mortgage, as well as alternatives that could be even more interesting.


Who is the reverse mortgage for?


Obviously, this type of product is not for everyone. Here is what the typical reverse mortgage customer looks like.

  • 55 years and over
  • Has lived in their house for several years and would like to continue living there
  • Does not want to increase their monthly payments
  • Needs money to:
    • pay off a debt
    • renovate
    • enjoy life


How does it work?


You can get up to 55% of your property’s value. The bank will base its decision on the following factors and determine the amount it will finance:

  • The value of the house
  • The city where the property is located
  • The type of property (condo, cottage, bungalow …)
  • The owner’s age


You will have the option of receiving a monthly pension.… LIRE LA SUITE

Getting a mortgage after bankruptcy  or consumer proposal: Yes, it is possible!

Getting a mortgage after bankruptcy or consumer proposal: Yes, it is possible!

Dernière mise à jour le January 7th, 2021

Whether it is because of a costly separation, a job loss or a difficult period, all kinds of reasons can cause financial problems that lead to a consumer proposal or bankruptcy. Everyone knows that after such a situation, it is much harder to get credit.

Rest assured, it is possible to buy a home after a consumer proposal or bankruptcy. Obviously, you will have to show that your financial situation has recovered since the proposal. However, if you plan ahead and do what you have to, there is a chance that you too will become a homeowner! This article will explain exactly what to do to restore your credit so that your loan is approved.

Restore your credit

It is essential to restore your credit and get started as quickly as possible after your discharge. Usually, it takes 2 years of credit restoration before you can buy a home. However, some institutions may offer financing after only 1 year of being discharged, if the file has been properly restored and the down payment is large enough, ideally a 20% down payment. In fact, if you have at least 25% as a down payment to invest in the next property, it might be possible to buy even faster.… LIRE LA SUITE

Minimum Down Payment for Income Property (Duplex, Triplex, Fourplex, Multiplex)

Minimum Down Payment for Income Property (Duplex, Triplex, Fourplex, Multiplex)

Down Payment Income Property

Duplex down payment

Here is what I believe to be one of the greatest advantages of a duplex.  The minimum down payment for the owner-occupant is only 5%. In fact, when it comes to down payments, the duplex is identical to a house or a condo. This means that at the time of purchase, if you plan on living in the building, the down payment will be 5% of the sale price for a purchase insured with a mortgage insurer (CMHC, Genworth, Canada Guaranty). However, if you do not intend to live in the duplex or if you prefer to avoid mortgage insurance fees then the minimal down payment will be 20%.


Minimum down payment for a triplex

When you want to purchase a triplex as an owner-occupant, the minimum down payment, with mortgage insurance, is 10% of the purchase price. Once again, if you do not intend to live in the triplex or to avoid mortgage insurance fees, you must have a down payment of 20%.


Minimum down payment for a fourplex

The down payment rules for a fourplex are identical to those of a triplex.  Therefore, if you plan on residing in the building the down payment is 10% of the purchase price, always through mortgage insurance. … LIRE LA SUITE

Mortgage Pre Approval: How To Get One?

Mortgage Pre Approval: How To Get One?

Dernière mise à jour le January 29th, 2020

Mortgage Pre Approval

What is the purpose of mortgage pre-approval?

So you would like to buy a house soon. Maybe you called a real estate broker and they asked you if you had a pre-authorization before they started a visit with you? Don’t take offense, it’s very common and quite normal, and even to your advantage, here’s why.

Pre-approval as an element of negotiation

Imagine that you have a house to sell; good news, two identical offers for purchase have been made on your house! One of the two potential buyers is pre-approved by the bank and the other is not yet pre-approved. Which of the two offers do you most want to accept? Obviously, you would prefer to accept the buyer’s offer that is pre-approved by the bank.

We cannot say that this is a crucial element in the negotiation, but pre-authorization certainly gives you more credibility as a buyer.

Pre-authorization allows you to lock in a rate

A pre-approval is also useful to lock in a mortgage rate. Generally, it is possible to lock in this rate for 3 to 4 months. What’s interesting about a locked in rate is that you are protected if rates rise, and if rates decrease, you are entitled to that rate decrease.… LIRE LA SUITE

Fixed rate or variable rate mortgage

Fixed rate or variable rate mortgage

Dernière mise à jour le July 31st, 2018

Should I opt for a fixed rate or variable rate mortgage? Am I better protected if I opt for a fixed rate? Rates are so low now, is it worth it to take a fixed rate for the longest term possible? When we rely on historical data, we pay less with a variable rate, should I go for a variable rate? Here are several questions we’re often asked when we are mortgage brokers.

In addition to the fact that one is fixed and the other varies, there are big differences between the variable rate and the fixed rate. If you think you know all the differences, you might be surprised. I invite you to read the article, you could learn a lot!

Here are the things to take into account before deciding.

Variable rate: belief

I happened to find out that some of my clients thought that the bank had total control of the rate when it comes to the variable rate. As if the bank offered you a variable rate of 2% to attract as many customers as possible, and that one year later it raised its variable rate. This isn’t how it works.… LIRE LA SUITE