What you need to know about business-for-self mortgage?
Business-for-self mortgage is for people who are self-employed. If you are a business owner, an independent contractor or derive most of your income from sale commission, you can apply for a business-for-self mortgage.
You may be approved for a home mortgage with as little as 5% to 10% down payment. The price range for the home you want to buy can be from $300,000 to $1,000,000.
The mortgage loan can be conventional if mortgage is less than 75% or 80% of the purchase price. Depending on the mortgage lender approving your loan, a mortgage insurance is required when the loan amount is over the maximum set by the lender concerned. The insurance premium is from 2.0% to 4.0% of the loan amount to be funded. Having good credit is important in your application for a home mortgage.
Most lenders require the borrowers to have:
1) Established and above average credit history
2) Documents to confirm business ownership for 2 to 3 years
3) There is an interest rate surcharge if a borrower’s credit is below average, and/or if the business operation is less than 2 years.
Some of the documents required to qualify for business-for-self mortgage financing are:
a) business incorporation certificate
b) business license
c) GST returns
d) bank statements for business account
e) catalogue, price list, supply invoices, etc
There are different mortgage plans available for business owners or self-employed individuals. The down payment requirement from a borrower may range from 5% to 25% of the purchase price. If you like to have more information on getting a business-for-self mortgage, you can contact me (Elsie Tse) at 604-716-3369 or Email Me for a discussion.