95% Loan to Value Second Mortgage

As of today, 2nd mortgage up to 95% LTV is available through selective lenders only as long as the first position lender is a CMHC approved lender. If you are planning to do some equity take out on your principle residence, this will work well. For a business for self (stated income), this program is [...]

CMHC Business For Self – Summary

Everything You Know about CMHC Borrower Eligibility
-Available to self-employed borrowers including:

Self-employed 100% commission
Self-employed contract
Self-employed seasonal
Self-employed small business owners
Self-employed professional

CMHC BFS Borrower Requirements
Must demonstrate at least 2 full years of operation of their business.
If a borrower has been working for an extended period of time and recently became self-employed in the same field, [...]

CMHC Self Employed Policy Change

CMHC will no longer accept applicants under their Self Employed program who own and incorporate a company. CMHC will still however do “sole proprietor” under that program. If applicant is incorporated they will now have to fully qualify.
Other high ratio mortgage insures in Canada also include Genworth and AIG. However, the lenders must adopt the [...]

CMHC – Self-Employment (BFS) Policy Change

CMHC will no longer accept  applicants under their Self Employed program who own and incorporate a company.   CMHC will still however do “sole proprietor”  under  that program.   If applicant is incorporated they will now have to fully qualify.
Other high ratio mortgage insures in Canada also include Genworth and AIG.  However, the lenders must adopt the [...]

Genworth – Self-Employed Insurance Guideline Changes

Effective December 8, 2008, the following changes have been implemented to the Genworth BFS Program.
* Borrowers with commission income are no longer eligible
* The income reported by the borrower must be reasonable based on the industry, length of operation and type of business.
* Beacon Scores have increased for 95% LTV deals – Primary Applicant must [...]

Flex Down payment VS Traditional Down Payment

Flex Down” actually has been around for some time. Flex down (CMHC program) is available for an “employed individual” who receives salary, or for “self employed” only if he/she claims sufficient income to debt service.
Flex down payment could include the following:

personal line of credit (LOC)
credit card transfer
borrowed funds.

Whereas, a traditional down payment can be [...]

Tip 5 – Commercial Properties at 100% Financing

With our relationship to local lenders, we have access to get you a 100% financing for an owner-occupied commercial properties.
Thus, if you run a business and currently lease the place. You should look deeper to this opportunity. The lender would require to see that you have been successfully paying a similar [...]

Tip 4 – Commercial Properties at 100% Financing

Thru specific local lenders, we have access to get you a 100% financing for an owner-occuipied commercial properties.
Thus, if you run a business and currently lease the place. You should look deeper to this opportunity. The lender would require to see that you have been successfully paying a similar amount of [...]

Mortgage Tips for the Self-Employed

Keep your taxes up to dateIn order to qualify for a mortgage, home buyers must submit a credit history and declare all outstanding debts. They must also provide documentation of their income.
With salaried individuals, banks generally ask to see a letter of employment and a pay stub. With self-employed people, banks typically require two [...]

Self-Employed (BFS) Mortgage Info Sheet

Here is a sample mortgage product sheet available for all Canadian (all province). It clearly states the credit score needed for specific loan to value (LTV). It also states the TDS and GDS requirements.
Click BFS-infosheet to download.