FISCAL AGENTS: Financial Services Group


Open the QuickNav window
Home
Search
Site Map
Contact

The Knowledge Bank

The Money Centre

The Learning Centre

Financial Tools

The Money Management Newsletter
General Interest
GICs / Fixed Income
RIF Planning
RSP Planning
Savings
Managing Money
Choosing Fin.Services
Insurance Products
RESP Savings
Taxes / Estate Matters
Home Ownership
Companion Advisor
Product Reviews
E-Newsletter Archive
Front Page Archive
Subscription Services

Products and Services

About Us




Google

FiscalAgents.com
World Wide Web

Special Glossary of Mortgage Terms
Find out more
Click above to find out how Fiscal Agents can assist you with mortgage issues.
Now Quick-Nav enabled!
Use this link to connect you directly to additional useful information related to Mortgages.

The Learning Centre:
Mortgages
 

The Money Management Newsletter: Home Ownership
Getting a mortgage for self-employed / commission workers


Getting a mortgage to buy a home for self-employed workers and those who work strictly on commission poses particular challenges.

In a survey of self-employment, Statistics Canada reports that nearly one worker out of six in Canada in 2000 was self-employed and most of these became, and remained, self-employed by choice.

Self-employed borrowers and commission sales people normally do not have the same income stability that regular salaried workers in Canada have. This segment of the Canadian labor force can apply for a regular mortgage to finance or refinance a home but the process is onerous and typically may result in higher interest rates.

GE Mortgage Insurance Canada has developed a specialized mortgage insurance program, available through financial lenders and mortgage brokers, to help self-employed and wholly commissioned workers receive a high, loan-to-value mortgage at regular interest rates, quickly and easily, to either purchase or refinance a home.

Who qualifies

Applicants under this program must prove they have been self-employed for at least three years by supplying at least two forms of written, third party documentation such as a business credit report, business license, Goods and Services Tax returns or articles of incorporation.

Self-employed applicants do not need to disclose the nature of their business but must show a strong credit rating with no mortgage, installment or revolving credit delinquencies and no reported defaults on residential mortgages in the past seven years.

Commission sales applicants are defined as someone who receives 100 per cent of their income from commissions.

Commissioned applicants must supply one form of written third party documentation through letters of employment, T4 or income tax returns (T1 General) showing at least two years of commission sales income as defined above.

What qualifies

The program will fund up to 90 per cent of the purchase price or 85 per cent of an existing property for refinance purposes, to a maximum loan amount of approximately $450,000.

Eligible properties include existing and new construction properties with a maximum of two units where at least one unit is occupied as the principal residence.

To qualify, all applicants must occupy the property. Spousal guarantees are also acceptable provided they occupy the property.

The GE Program is available through banks and other lending institutions. If you feel you qualify, check your local lending institution or contact GE Mortgage Insurance Canada at www.gemortgage.ca

From more information on mortgages, be sure to visit our Mortgage section in our Leaning Centre.

With files from NC

* * *

Use this link to load a printer-friendly
version of this document.

Do you want to share this page with someone else?
Send this page to
Sending
Format
Text
HTML
Your email address

Have a question regarding this article? Use our feedback form to send us a note.
BACK

© , Fiscal Agents Money Management Newsletter
25 Lakeshore Road, Oakville, On L6J 5B4.
(905) 844-7700

 





Fiscal Agents Home

Knowledge Bank Money Centre
Learning Centre Financial Tools
Newsletter Products & Services
About Us    

Legal | Site Map | Home | Search

Copyright © 1984 - Fiscal Agents Financial Services Group


Questions? Comments?
Use our Feedback page to contact us.

 
Home Ownership

Is a "zero" down payment mortgage right for you?

Getting a mortgage for self-employed / commission workers

I've applied for a mortgage, what's happening?

Moving Day - The very last box you should pack

As the weather warms up, will house hunting be your hot topic?

Have you ever thought about investing in a private mortgage?

Pay off your mortgage faster and save thousands of dollars

Over-Extending Yourself Financially: The quickest way to destroy the excitement of owning your own home

After months of house hunting, you've finally found the perfect home for you and your family. But, is it really the great investment it appears to be?

Buying a new home may be the biggest investment you make in your life

Home as an investment, Rent vs. Buy.

Understanding how Term and Amortization work can save you lots of money

Second mortgages - taking a second look

The Lawyer's role when closing