No Proof of Income Required for Self-Employed!

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On April 9^th this year, the government announced changes that had a major effect on Self Employed borrowers. Under the new guidelines a self-employed person who is in business for more than 2 years would only qualify to buy a home on the net (after deduction) income they paid personal income taxes on. The down payment for Self Employed borrowers was increased from 5% to a minimum of 10% as part of the changes. The Beacon score and proof of no taxes owing remained the same.

The following chart demonstrates the old and new guidelines.

Old Guidelines	New Guidelines
Minimum 5% down	Minimum 10% down
Years in business did not affect approval based on “stated income”	After 2 years in business you will only be approved on *“taxable income”*
Must show no Income Tax owing	Must show no Income Tax owing
Clean credit of 680 Beacon required	Clean credit of 680 Beacon required

We still offer mortgages to Self-Employed borrowers based on “Stated Income” provided they have 10% down, clean credit (over 680 Beacon) and no taxes owing.

“Your Durham Mortgage Solutions Team” is here to answer all your questions regarding the ability to “State” your income and qualify for a higher purchase price for your next home. Won’t you call us today!

Elfie Hayes as seen on the CTV National News, Rogers TV, published in RENO & Décor Magazine and profiled in Canadian Mortgage Professional Magazine.