Self-Employed Mortgage Financing in Vancouver

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Business-For-Self (BFS) Mortgage Options

We offer alternative financing options to self-employed and BFS borrowers through reliable banks and lenders that qualify our clients with verifiable income, as well as those without income proof.

When self-employed, it is difficult to fully reflect annual assets and revenues, so our lender programs are designed to qualify clients through the client’s reported income, rather than taxable income, while also being eligible for the regular lowest rates around.

Lender Conditions

Lenders will require three years of Notice of Assessment docs with any self-employed mortgage financing, and perhaps even require third-party income validation. There are programs specifically catered to the self-employed based principally on credit history over income. Providing sufficient third-party income validation will entitle the client to gain access to any regular high-ratio mortgage products and rates. If no third-party income validation is supplied, the application is then solely based on good credit and a minimum down payment of 10%.

In addition to the NOA’s, credit report, and, in some cases, third-party income validation, the following are other supporting documentations a lender may require proof of:

• Three year minimum self-employment status.
• Registered name as principal owner in the business.
• Licensing – borrower’s business or GST licence or Article of Incorporation
• Two year minimum work experience in the industry
• Down payment, as part of personal assets

Providing lenders with full documentation and supporting income qualifications will increase your mortgage approval odds. Borrowers face negative responses when income is unverifiable, as the client appears to be a greater risk to the lender.

BFS Mortgage Insurance Rates with CMHC

High-ratio mortgages with down payments of over 20% are considered exempt from requiring mortgage default insurance from CMHC. Unfortunately the terms of BFS mortgages are substantially higher. Self-employed mortgage financing with a down payment between 10% – 35% requires CMHC insurance with the applicable premiums. These Business-For-Self mortgage premiums are higher than that of regular mortgage loans.

Vancouver Mortgage Broker Services

Consult a Vancouver Mortgage Broker to help locate lenders that are specialized in self-employed mortgage financing and provide more favourable conditions. We have access to over 90 banks and lenders and can connect you with a lender most suitable for your financial situation.