We all know that looking to purchase a home is a whole lot more complicated when you are Business For Self. Many lenders today require so much paperwork and information that it is very complicated to move forward. All the required documentation is a long list. It sometimes feels as though you are signing over your first born. Anyone who is self employed, whether business owner or sole proprietor has gone through this one point in their life and if you have a great accountant who plays the tax game, it is even more of a challenge.
As many lenders and CMHC and Genworth have changed their business for self programs, your window of opportunity is a little smaller. Each insurer has specific guidelines to follow, if your self employed less than 2 years your better with X insurer and if your business for self longer than 2 years, again you fit into X insurer’s products. There currently are some lenders who look differently a clients who are business for self. Whether they offer a higher GDS and TDS to help qualify or are more of a stated income product, these options may get you into your new home a lot quicker and with less headache. With more loose guidelines of course there has to be some kind of catch and of course it usually falls to rate. You may not get a discounted rate but have a posted rate which is generally maybe 1% higher can make a difference and if you can eliminate a CMHC premium, it might even make sense.
If your looking to see where you may fit with some of these options, please consider speaking with a qualified mortgage planner to weigh which option is better for you.