If you are self-employed and are looking to purchase a home or even refinance your current residence then this blog should answer the majority of questions you may have.

When it comes to purchasing a home you can borrow up to 90% of the sale price without proof of income. (A refinance is capped at 85% loan to value) You basically state the income based on the reasonability of your industry.

Now let’s look at the dynamics of these programs. The three insurers in the industry are CMHC, Genworth and Canada Guaranty and all offer a self-employed program.

CMHC allows the stated income to clients who are less than 3 years self-employed. If you have been in business for longer than 3 years then you have to prove your income and use your net income to qualify the deal. Also if you are self-employed for less than 3 years they are looking for a minimum 2 years in the same industry even if it is not in a self-employed capacity.

Both Genworth and Canada Guaranty use stated income but you must have been self-employed for a minimum of 2 years.

All 3 insurers require strong credit histories and 10% down payment from their own resources. (Genworth will allow 5% from own resources and 5% can be gifted)

The links above will take you to each insurers sites and explain further what is required.

So if you are 1 month self-employed or 20 years there is a product that will fit your needs. Even if you do not have the credit there is some sub-prime products available to help out also. (I will address this in another blog on sub-prime mortgages)

So never pre-judge your situation. I offer free mortgage consultation and would be more than happy to review your situation.

As always your comments and questions are encouraged.

Eric Gall is a mortgage specialist for TMG Atlantic. If you are purchasing, refinancing or renewing your mortgage contact Eric or check out his website and apply online.