Self-employed borrowers have access to all major mortgage programs in Canada. Here is a brief comparison of the available loan options to explore:
Conventional Loans for Self-Employed
Conventional loans are offered by most Canadian lenders and require a down payment of at least 20%. Self-employed borrowers must have:
- A strong credit score
- Proof of income
- Additional documentation may be required (e.g., business financial statements).
The loan amount will be based on the borrower’s income and creditworthiness.
CMHC Loans for Self Employed
The Canada Mortgage and Housing Corporation (CMHC) offers mortgage loan insurance for self-employed borrowers with less than 20% down payment.
The program has flexible income and credit requirements and may be a good option for those with non-traditional income sources. However, the insurance premium can be expensive.
Self-Employed Mortgage Loan from B Lenders
These alternative lenders are more flexible in their lending criteria than traditional banks. Self-employed borrowers may find it easier to qualify for a mortgage from a B lender as they can use alternative income verification methods, such as bank statements or gross revenue instead of taxable income.
If you’re self-employed, a mortgage loan from a B lender may be the best option for you. TurnedAway.ca can help you get fast approvals and find the right lender for your needs. Contact us today to learn more.