Jason Kays, AMP
With over 17 years experience in the Financial Services Industry, and having achieved the Accredited Mortgage Broker (AMP) designation, I have the experience and product knowledge to find you the mortgage with the lowest rate, and with the best terms for your personal financial situation.
As an independant Mortgage Consultant working with Mortgage Brokers City, I have access to over 40 lenders to find the best deal for you. I get paid by the lender we place the mortgage with, and you, the client do not pay me anything.
It's taxes versus a mortgage for the self-employed
Date Posted: September 25, 2014
Part of the B-20 requires banks to examine incomes more closely, but where does that leave self-employed people, who have had more trouble getting mortgages since that rule was brought in?
The biggest issue with self-employed workers is they typically lower their taxable income through business expenses and other deductions. This results in them declaring an often, inaccurate reflection of their incomes. Before the B-20 rules were set in place, self-employed individuals were able to declare their income and provide proof of self-employment, along with other documentation when applying for a mortgage.
Today, self-employed individuals can still apply for a stated income mortgage at some banks, but B-20 also means that they need to put up at least a 35% down payment to avoid purchasing default insurance from the likes of Canada's big three insurers.