The introduction of B20 lending guidelines now implemented have posed many limitations for Self-employed applicants creating a frustrating process, the most common limiting banks to only use taxable income found on line 150 of income tax returns.
The type of employment, functionality and industry sector of a business are a few factors that should be considered in order to provide a custom suitable mortgage product that service your current and future needs.
Specializing in this challenge, I can share that there are an array of alternative lenders that offer incentive products through Mortgage Brokers:
- 1st and 2nd combined mortgages
- Fully open mortgages with short and long terms
- Interest only mortgages
- 40 year amortization
- Private Institutional lenders that offer 1st and 2nd mortgages with $0.00 lender fees.
In addition to this, these products allow for maximum financing approvals:
- increasing your taxable income upto 15% (referred to as a “top up”)
- waiving the monthly payment of business automobile lease payments that appear on your credit report
- using 80-100% of the rental income on investment properties (vs 50% requirement)
- placing a blanket mortgage on two owned properties.
- using 6-12 month of earning deposits in your business bank account as income
- adding income such as child tax credit and other government incentive subsidy programs
As a business client your success depends on many factors, one being the articulate skill of managing profit margins. If we calculated the income tax savings over your business years, chances are they are no where near the minimal mortgage costs they you would incur.
The focus here should be around customizing a mortgage product that suits the nature of your business such as seasonal, cash business, delayed earnings and dividend income. The type of business will also determine your allowances, is the business Incorporated, operated as a Sole Proprietor, Corporation, Holding Company, Limited, or a sub-contractor only operating with a business license.
This will allow for the business to thrive and combine the financing into one inexpensive mortgage product.
Marisa Parise is a Mortgage Broker with over 30 years of experience in the financial industry. This Bolton based broker is proud to use her established network of over 50 lenders to service her clients residential, industrial and commercial financing. This enables her to obtain customized products, competitive rates, flexible options, maximum pre-payment options and quick response times. Her extensive expertise can resolve any mortgage related inquiries and provide a clear understanding of best suited options. For your mortgage solutions Marisa Parise can be reached at [email protected] or 416-305-SAVE (7283) or learn more on her website MarisaMortgage.com
The post Mortgage Matters: Self Employed, Sub-contractors or 100% Commission Pay appeared first on Just Sayin’ Caledon.