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Business Owners

To say that things have changed for borrowers that own their own business’ would be an understatement.

Here is a long version; Self Employed news Nov 5th, 2013

The shorter version;

What your bank did for you as recently as six months ago they may well no longer be able to replicate.  That would be where I enter the picture.  Although all of the Chartered Banks are now heavily restricted by the OFSI’s new B20 rules there still remain superior lending options with varous Credit Unions.

An independent, licensed AMP – Accredited Mortgage Professional is the most efficient route to the answer you need.

Down payment criteria has changed, the list of documents required to confirm existence of the business has grown, and backing up claimed income with accountant prepared T1 General tax returns is a much more strenuous process.

For self-employed individuals the key document is the most recent two years Revenue Canada Notice of Assessment.

Programs for business owners that do not draw significant taxable income from their Company still exist, however they are in completely different forms as compared to the Spring of 2012.

What has driven this tightening?  Optics and Politics are the top two things, certainly not mortgage arrears rates which remain extremely low at .35% of the market.

If you are not pulling strong documented income from the company you will find the purchase or refinance process significantly more challenging that it was over the past ten years.

The bottom line is that I know which lenders still have the sharpest programs and how to structure the file for its best chances of a prompt approval.