A self-employed mortgage Canada is a type of mortgage loan that can be obtained by people who don’t work for an employer. The borrower must have income from their business or other sources, and the lender will usually require extensive documentation to verify this income.
Self-employed mortgages are typically used as refinancing options when the current homeowner has taken out a larger first mortgage on their property than what they want to borrow now; it is also possible to take a self-employed mortgage out as your first home purchase if you have sufficient savings to make up for any difference in interest rates.
When it comes to financing your home, the process can be overwhelming. With all the different mortgage options available, you may not be sure which one is best for you. Self-employed mortgages are a great option for many Canadians with mixed-income sources such as self-employment and other forms of income. The process is similar to that of a regular mortgage; however, there are some additional requirements to qualify for this type of loan.
Have you been seeking a mortgage for your home purchase or refinancing? If so, there are many factors to consider. Will the property be your primary residence? How much will the monthly payments be, and how long do you plan on living in it? What are your current income level and credit score like? Are you self-employed and have difficulty proving a steady income?
In Canada, most lenders require that borrowers take out a minimum 20% down payment to qualify for a mortgage. It means that if you’re buying an average-priced 500,000 Canadian dollar house with a five-year fixed term at 3%, then this would come up to about $100,000 CDN!