Your mortgage is not ‘portable’ as you might perceive ‘portable’ to mean. You do in fact need to completely re-qualify under todays far more stringent guidelines for the same mortgage you hold. And we often have clients discover that they now qualify for significantly less than their current mortgage balance.
Discover this BEFORE you list and sell your current home.
In particular the self employed applicant (the owner of the business) needs to be having a detailed conversation with an expert, a conversation that includes a complete overview of all documents required. As the list has grown radically since 2012.
You likely think you are awesome, because your company is awesome, and no doubt you and company are awesome! However all that really matters, what it all boils down to in the end is your Personal Line 150 documented income. Having $100.00 or $100, 000.00 in liquid capital will not matter. Having never missed a mortgage payment in your life will not matter (99.69% of CDN’s never miss a payment – so ‘special’ is relative here).
Where our business owner clients used to provide a single CRA Notice of Assessment, and not much else, they are today being asked for;
- 2 years CRA Notice of Assessment
- 2 years T1 General personal tax returns (complete & accountant prepared)
- 2 years Corporate Financials (retained earnings are of limited help)
- Documented proof of business for self (i.e. Notice of Articles, GST returns, business licences)
From a few pages, to a few hundred. Things have changed.
With a changing mortgage marketplace, you need to be kept up to date so that you can make a decision that is tailored to your current situation with the flexibility that you require.
I can help you through the entire process, helping you explore all your options.
Make a call now and have your financing plan in place and be sure it is workable prior to accepting an offer to sell your current home.
This is vital!