Lic 10845, Independently Owned & Operated
Lic 10845, Independently Owned & Operated
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Mortgages for the Self Employed
Get approved with less documentation
- Lower Monthly Payments
- All Credit type accepted
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Self-Employed Mortgages
At AKAL Mortgages Inc., we understand that self-employed individuals and business owners have unique circumstances when it comes to securing mortgage loans. Because of tax write-offs, their documented incomes tend to appear much lower than they actually are which can create complications during the loan application and approval process.
If you are self-employed, turn to AKAL Mortgages Inc. for help securing:
- A mortgage loan
- A loan for home renovations
- Financing for your other personal needs
- Debt consolidation
Lendevi Expert Advice
New Down Payment Rules as of February 2016:
Purchasing your first home can be incredibly exciting, whether you’re doing it on your own, with a new spouse, or with your family. 5% down payment is available for homes up to $500,000 purchase price. Homebuyers will have to put 10% “on the portion” of the price over $500,000.
For example: On a purchase price of $700,000, minimum down payment will be calculated as below:
5% on the first $500,000 = $25,000
10% on the next $200,000 = $20,000
A total of $25,000 + $20,000 = $45,000
Portability
If you plan to live in the home for more than five years, you need not worry about portability that is, shifting the mortgage to a new property.
Low-Frills Mortgages
If you don’t plan on moving, refinancing or making huge prepayments in the upcoming five years, you can consider low-frills mortgages.
Extra-Savings
Most first-timer buyers opt for a 5-year fixed rate because they cannot afford an interest risk.
Hybrid Mortgages:
If you do go variable, look for one that maintains your payment the same regardless of interest rate variations. It’s easier for budgeting and gives you peace of mind if rates start climbing.
BANKRUPTCY
Although some business people see bankruptcy as a viable option to get out of a bad deal and regroup, lenders generally do not like bankruptcy. Nevertheless, some lenders will overlook this if there has been consistent and excellent credit since the time of bankruptcy.
Offer a larger down payment
Lenders are somewhat handcuffed to the insurer when there is less than 20% down payment on a property purchase. But if you offer more than 20% down payment, depending on the lender, their flexibility increases and it is up to the lender or even the branch if they want to take you on as a client.
Prepared for higher interest rates
Lenders offer discounted rates to those that fit in the “box”. Those that are not conventional are seen as a risk and, therefore, are applied to a higher interest rate. There also could be lender fees attached to the mortgage.
As a last resort, you can do private financing
Even though it is an expensive option, it could result in the mortgage you are looking for. Rates are higher and there will be lender/brokerage fees. However, you could be in a private mortgage for 12 months or even less, whereby giving yourself time to improve your credit (if need be) or topping off a two year self-employed period to set yourself up to show STATED INCOME to the lender. The whole point of private financing is to use it as a short term solution for a long term plan.
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Why You Should Choose AKAL Mortgages Inc.
Borrowers
- When we say YES! We stand behind our promise
- Mortgage solutions based on your needs and qualifications
- Fast approvals and quick closings
- Save time and money
- Lower mortgage rates due to lender discounts and promotions
- Licensed, knowledgeable and experienced
- Protect your credit score
Brokers
- The Most Important: Dedication to our agents!
- Bootcamp-3-days: Learn Lead Generation, Products and Underwriting
- Training: Weekly training and industry updates, One on one support
- Mentoring: Specialize in Residential, Business and Commercial
- Lead Generation: Proven successful campaigns to generate leads
- Personal website; mobile Apps; online virtual meetings, e-signatures
- Lenders: VIP access to more lenders and top tier compensation
- Professional office (at no cost to you): Meet your clients at the office
FAQ
Frequently Asked Questions
One among the following should affirm at-least two (2) years of business-for- self tenure:
- Business License
- GST/HST Return Summary
- T1 Generals with statement of business activities attached for a minimum 2 years prepared by an arm’s length third-party
- Audited Financial Statements for the last 2 years, prepared and signed by a CA
- Plus a recent Notice of Assessment or a signed affidavit by the borrower(s) to confirm no income tax arrears (Note: in the province of Quebec, both federal and provincial NOA’s will be required)
Partnerships are businesses owned by two or more individuals who share the profits or losses of the business operation. The partnership income is reported to Revenue Canada on the standard tax report (T1 General) together with Revenue Canada’s required statement of business or professional activities, which reflects the percentage of the NET income or loss for each partner of the enterprise.