Alot has changed in the mortgage world since 2009's financial crisis and lender tightening. More and more self-employed people have been phoning me, frustrated with their banks and because they're not cut and dry, feeling like they're getting the brush off by bankers too busy focusing on easier stuff like account openings or credit card promotions.
Yes, it has gotten tougher these days with CMHC and other insurers pretty much wanting a blood sample if anyone dares apply under their "self-employed simplified" program. No more stated income programs unless you're a new Doctor with less than 2 years financials....everyone else...no such luck. There is another way. Many lenders allow for what's called "add backs" onto a Buyer's NOA line 150 taxable income. How much you ask? Well, that's where it gets tricky and I must admit a bit boring...what we can add back and how much and with who is not a cookie cutter recipe. Scotiabank, TD, RBC, Merix, MacQuarie, BMO, credit unions etc all have such varrying policies that a self-employed Buyer may qualify for 200K at one lender and 325K at another!
I love helping people navigate through the clutter and find the best solutions!