Mortgage for Self Employed Canada

“Securing a mortgage deal can take a bit of work and planning. There are three main factors when you are self employed Canadian. The process can be more complex but once you understand it, it is quite simple. Credit history, proof of more than 35% of down payment and notice of assessment from past 3years is must. There are other options but they will be lot more expensive” says Navtaj Chandhoke, founder, Professional Real Estate investors group (PREIG) Canada.

Mortgage for Self Employed Canadians

Good credit report

credit score are important factors in determining whether or not you will be approved. This is one of the factors mortgage professionals consider in qualifying you for a mortgage. The lender requires excellent beacon score possibly above 680 or more.

Canadian lenders will require mortgage loan insurance unless you can put down a down payment of more than 35 % . Insurers also recommend that lenders demand higher credit scores from borrowers stating their own incomes.

The simplest way for the self-employed to qualify for a mortgage is for the lender to look at your income on the Canada Revenue Agency notice of assessment for the past two years and see if you qualify for a mortgage.

Mortgage for Self Employed Canadians

(CMHC) will allow self-employed individuals to increase the income on their notice of assessment by 15 per cent in order to qualify for a mortgage. This is a generally accepted increase to compensate for non cash items such as business use of the home.

For full details, visit their website at CMHC

CMHC will average your income from the past two years.  If your income has been rising each year for the past four years or more, they will use the latest year for calculations.  To take advantage of certain tax strategies, many self-employed may keep money in their business  than generating income.

If you’re unable to qualify based on your verifiable income, you can still obtain insured mortgage finance, but CMHC will charge you a higher premium. Since April, CMHC permits you to state your own income if you have been in business for less than three years.

Most of the Canadian lenders will require mortgage loan insurance unless you can put down a down payment of more than 35 per cent. Insurers also recommend that lenders demand higher credit scores from borrowers stating their own incomes.

World Wealth Builders (WWB) conveys action-orientated Canadian Real Estate investors education, coaching and mentoring. WWB provide wealth creating secrets, strategies & step-by-step practical how-to methods.

Mortgage for Self Employed Canadians

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Syndicate Mortgages Canada

A syndicate mortgage is where several investors combine funds together to create one instrument (a mortgage). The investment ‘moves’ as one funding but each investor is individually registered and secured proportionally. Syndicate mortgages allow you to have direct collateral for your investment and ongoing returns from the interest earned by the mortgage.

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Interest Free Mortgage Calgary

Home ownership in Calgary with Interest free Mortgages & Grants

The PEAK Home Ownership Program — which stands for Public, Essential and Key workers — is a joint initiative with Habitat for Humanity, the Government of Alberta and the Trico Charitable Foundation.

“This is very nice program for Calgarians for the first time Home buyers and give them a head start” says Navtaj Chandhoke, founder of Professional Real Estate Investors Group (PREIG) Canada, instead of renting it and not able to built equity as well as take advantage of  appreciation. The carrying cost will be quite similar but pride of ownership has its own rewards”.

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Mortgage Defaults Alberta

New statistics from the Canadian Bankers Association suggest more people in Alberta are struggling to pay their mortgages. Alberta has suffered the same in March 1983.It is all about the oil and gas.

If Oil and gas prices are high, the economy booms like a wild fire. But when the Oil and gas prices crash, it intends to bust the Real Estate market. During the boom many homeowners jumped into high price homes with low down payment. Since the prices have dropped, there is lot of underwater properties in Alberta.

Mortgage Defaults Alberta

Mortgage Defaults Alberta

“The numbers of Canadians who are unable to make mortgage payments are 18,371 which is 0.45 per cent of mortgage holders from major Canadian lenders as per Canadian Bankers Association. In Alberta the number of defaults is 4,212 which is 0.83 per cent of mortgage holders in Alberta.

They were unable to make payment for three months or more. An increase from the beginning of 2007 when 0.17 per cent of mortgages were in arrears. The situation is worse in Alberta than the rest of the country, where, historically, default rates average 0.45 per cent. In the United States, by way of comparison, close to 8 per cent of all mortgage holders are late on their payments says Navtaj Chandhoke, founder of Professional Real Estate Investors Group (PREIG) Canada.

Genworth the country’s second-largest mortgage insurer after Canada Mortgage and Housing Corp., acknowledge that they are dealing with higher delinquencies in Alberta. The delinquency rate in its Alberta mortgage insurance portfolio was 0.59 per cent at March 31, compared to 0.18 per cent in Ontario, 0.31 per cent in B.C. and 0.27 per cent nationally.

While other provinces were able to recover as the recession eased, Alberta’s economy is back on track due to higher oil prices, disturbance in the Middle East. Calgary’s unemployment rate of 6.3 per cent is higher than the rest of Alberta at 5.7 per cent. A growing number of homeowners in Calgary are struggling to meet their mortgage payments as Calgary suffers a six-year real estate declining prices.

When the recession hit in 2008, oil prices plunged from $140/barrel to $35/barrel, the panicked homeowners rushed to sell in near-record numbers, flooding the market with inventory and putting renewed pressure on prices.

The Canadian Association of Accredited Mortgage Professionals found that 84 per cent of homeowners could afford at least another $300 increase in their monthly payments before falling behind. There is more than $1-trillion of mortgages outstanding in Canada, meaning even a small default rate has implications for the broader economy. When interest rates interest rates climb higher, and that will put even more people behind the financial eight ball.

“This can be great time to look into buying pre foreclosure properties. You could be helping all the concerned parties and make a great fortune for yourself” say Navtaj Chandhoke of World wealth Builders. Make sure that you have proper education about foreclosure process of Alberta. By helping fellow Canadians one can create win/win situation for all parties in concern and make a fortune.

World wealth Builders provide very special Alberta Foreclosure Apprenticeship which involves learning the Alberta Foreclosure laws, obligations of the property owner and the lenders. You learn by watching real people going through courts as well as facing the hardship of tough economic times. The apprentice visits the families as well as the courts to see the first hand and help all the parties in concern.

Mortgage Defaults Alberta

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