I have been in the Financial Services industry for over 25 years. As the VP of Sales and Service at Mortgage Brokers Ottawa, my role is to provide leadership and direction to ensure that our excellent group of Mortgage Brokers and Agents have the tools and resources to do what they do best, give clients superior mortgage advice. I also assist our Partnership group in continuing to foster our relationships with external partners in the community.
I am also a Mortgage Agent and really enjoy helping people finance a new home or refinance an existing home. Prov ...
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.