subject: Can you obtain Canada's Lowest Mortgage Rates When You Can't Prove Income? [print this page] Can you obtain Canada's Lowest Mortgage Rates When You Can't Prove Income?
Canada's lowest interest rates are generally offered to Canadians that represent the lowest risk to the banks. US banks are known for approving consumer credit based on the consumers credit score. Canadian banks consider so much more.
In Canada you can have the best credit in the world but if you cannot prove your income, qualifying for a mortgage can get very challenging.
Usually if the applicant is self-employed a bank will ask for two years of tax assessments. Many small business owners who have great credit happen to show little net income after business expenses have been considered. The challenge is that the net income on your tax return is the income that the bank will consider.
If you have some equity in your property or alternately if you have 10%-15% down payment on a property you are planning to purchase AND you have excellent credit, you still may be able to obtain a low rate mortgage.
There are many non-retail banks, trust companies and mortgage investment corporations that offer low rate mortgages to self-employed individuals. Typically these lenders only offer their financing through mortgage brokers so if you are in this situation, a relationship with a mortgage broker is something you should establish immediately.
If you are behind filing your tax returns or you owe income taxes to the CRA this will present another problem. Most low interest mortgage lenders will want to see your most recent two years of tax assessments because they will want to confirm that:
1. You are filed up to date
2. What your income and expenses were
3. That you don't owe any money to the CRA
If any of the above items mentioned are present, you will likely require more equity in your property in the case of a refinance or more down payment in the case of a purchase in order to obtain a mortgage. You may also end up paying a slightly higher interest rate.
A great mortgage solution not only fulfills all your current financial requirements but makes sure that you are not burdened with any hefty payments. I offer some of the lowest rates in the Mississauga, making sure that your next mortgage payment is well within your means.
For mortgage information visit www.gtamortgagematters.com.
