Mortgage for Self-Employed

Self-Employed borrowers and Commissioned Sales people that cannot provide traditional income verification can now qualify for  mortgage for purchase or refinance purposes.

Borrower qualification:
Strong credit and credit score (for minimum bureau score requirements see the premium matrix below)
Genworth will average the scores pulled from both credit bureaus for each borrower, and the minimum score requirement will apply to all borrowers on the application
No mortgage, installment or revolving credit delinquencies appearing on the credit bureau in the past 12 months
No reported defaults on residential mortgages for the past 7 years
No previous bankruptcy
No gifted / borrowed down payment allowed
Lender to ensure borrower(s) have no tax arrears (recent NOA or a signed affidavit by the borrower(s) will suffice).

Self employed borrowers:
2-years self-employed tenure is recommended, however will consider borrowers with less than 2-years BFS tenure depending on the length and type of previous employment.
One (1) form of written third party documentation confirming self-employment tenure must be on file  
Lender is required to capture the borrower's "Stated" income and submit to Genworth as part of the application. (This should be documented on the loan application and no other documentation is required to satisfy this condition)
The "Stated" income should be reasonable based on the type and size of the business, and should be able to service the required mortgage as per the GDS/TDS Guidelines above
Reasonableness of the income and debt servicing ratios are a factor in the approval of the loan.

Commissioned sales:
A commissioned sales applicant is defined as someone who derives 100% of their income from a commissioned source, regardless of whether they receive a T4
The lender is responsible for ensuring that the borrower is a commissioned sales applicant as defined above, with a minimum of two years tenure, for example by way of letter of employment, T1 Generals or T4's
Lender to ensure borrower(s) have no tax arrears (recent NOA will suffice)
Commissioned sale applicants who are paid a salary plus commission are NOT eligible under this program and must qualify in the usual manner (e.g. GDSR/TDSR and income confirmation will be required).

Documentation/information requirements:

Sole Proprietorship
A one-owner operation where the owner directs all the activities of the business, assumes all authorities and obligations, and is liable for its business debts. The sole proprietor income is reported to revenue Canada on the standard tax return (T1 General) together with Revenue Canada's required statement of business or professional activities.
Documentation requirements - Any one of the following:
Business License
Business Credit Report
GST/HST Return Summary
T1 Generals with statement of business activities attached for a minimum 2 years
Audited Financial Statements for the last 2 years, prepared and signed by a CA
Plus a recent Notice of Assessment or a signed affidavit by the borrower(s) to confirm no income tax arrears

Partnerships
Partnerships are businesses owned by two or more individuals who share the profits or losses of the business operation. The partnership income is reported to Revenue Canada on the standard tax report (T1 General) together with Revenue Canada's required statement of business or professional activities, which reflects the percentage of the NET income or loss for each partner of the enterprise.
Documentation requirements - Any one of the following:
Business License
Business Credit Report
GST/HST Return Summary
T1 Generals with statement of business activities attached for a minimum 2 years
Audited Financial Statements for the last 2 years, prepared and signed by a CA
Plus a recent Notice of Assessment or a signed affidavit by the borrower(s) to confirm no income tax arrears

Corporations
A limited company or corporation is a legal entity, separate from the persons (all shareholders) who own it. The business can own assets, enter into contracts and conduct business transactions in its own capacity. The company is called limited because the liability of the shareholders is limited to their investment. All provincial Corporations must obtain articles of incorporation from the province in which they are registered or may be federally incorporated. The applicant's personal income will be reported by T4 from the corporation.
Documentation requirements - Any one of the following:
Articles of incorporation
Business Credit Report
Audited Financial Statements for the last 2 years, prepared and signed by a CA