More than 15% of Canadian work as self-employed or commission-based income. For self-employed or commission-based income, there are special mortgage programs in different lenders. There are 2 options to get the mortgage for a self-employed borrower:
- From A-Type Lender: lower rates, but higher requirements
- From B-Type Lender: higher rates, but lower requirements
If a self-employed borrower can provide a verified income, like Notice Of Assessment from Canada Revenue Agency (CRA), then he/she will be treated as normal mortgage borrowers (A-Class Borrower) and get the lowest mortgage from any lender.
The following comparison is only for those self-employed borrowers whose incomes are difficult to verify.
|Items||A-Type Lenders||B-Type Lenders|
|Down Payment||from 35%||from 5%|
|Income Verification||accept reasonable stated income||no verification|
|Credit Required||good credit||doesn't matter|
>>> Call Me for detail